Recommendations of Building Electronic Commerce Infrastructure Hong Kong Consumer Goods Distribution B Case Solution

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Recommendations of Building Electronic Commerce Infrastructure Hong Kong Consumer Goods Distribution B Case Study Solution

On the basis of above internal and external analysis of the business along with the examination of various alternatives, the company is advised to think about alternative 3. As alternative 3 would enable the company to expand in global markets without any decrease in its regional incomes and any degeneration of its market position. The business might pursue alternative 1 which would enable the business to focus on possible international markets rather than the regional markets but as the business is extremely reliant on the local markets with 90% of its stores in the US, there fore pursuing alternative 1 would result in the considerable decrease in company's revenue.

Aletrnative-1: Expanding International Brick and Recommendations of Building Electronic Commerce Infrastructure Hong Kong Consumer Goods Distribution B Case Help Stores

The business has a long term market position in US which can not be created quickly in the new markets. The alternative would assist the company to expand in worldwide markets along with the removal of issues raised in its regional markets related to its diversity.

Pros:

• Exploration of new international markets.
• Increase in profits from global markets.
• Elimination of concerns related to diversity.
• Profits diversification.
• Step towards being a strong global brand.

Cons:

• Loss of comprehensive revenues from the local markets.
• Boost in competition.
• Differences in cultures might led to a failure of the brand name particularly in Asian countries.
• Low profits at initial levels.
• Boost in marketing expenses to gain market share.

Alternative-2: Introduction of Click and Recommendations of Building Electronic Commerce Infrastructure Hong Kong Consumer Goods Distribution B Case Solution Stores

With the increased trends towards online shopping, the online shops like Amazon, Alibaba etc. might position a serious danger to the market share of business. In this scenario the company could consider introducing Click and Recommendations of Building Electronic Commerce Infrastructure Hong Kong Consumer Goods Distribution B Case Analysis shops. These stores with a low requirement of funds to settle would make it possible for the company to reach worldwide markets, without ending its domestic shops.

Pros:

• Low investment
• Minimizing competitors hazard
• Access to the world markets
• Increasing the size of consumer base
• Easy to handle
• Big Incomes
• Low Operating Costs
• Easy brand-new market entryway

Cons:

• Risk to the market position
• Elimination of brand Individuality
• Elimination of the great store experience.
• Risk of decline in elite sales.

Alternative-3: Expansion towards International Markets Without closing Domestic Stores

Another option that the company could think about, is to expand towards the worldwide markets without closing its domestic shops that contributes to the major part of profits of the business. The benefits and drawbacks associated with Alternative 3 are given listed below;

Pros:

• Lowering competitors hazard
• Access to the world markets
• Expanding customer base
• Large Incomes
• Expedition of brand-new global markets.
• Boost in profits from worldwide markets.
• Earnings diversification.
• Action towards being a strong international brand.

Cons:

• Extension of problems related to variety.
• Distinctions in cultures might led to a failure of the brand name particularly in Asian nations.
• Low earnings at preliminary levels.
• Boost in marketing expenditures to acquire market share.



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