Recommendations of Cargonet Transportation Community Network Limited Case Solution

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Recommendations of Cargonet Transportation Community Network Limited Case Study Help

On the basis of above internal and external analysis of the company along with the examination of different options, the business is suggested to think about alternative 3. As alternative 3 would enable the business to broaden in global markets without any reduction in its local earnings and any deterioration of its market position. The business could pursue alternative 1 which would allow the business to focus on prospective global markets rather than the regional markets but as the company is highly dependent on the local markets with 90% of its stores in the US, there fore pursuing option 1 would result in the substantial decline in business's income.

Aletrnative-1: Expanding International Brick and Recommendations of Cargonet Transportation Community Network Limited Case Help Stores

Expansion towards international markets through opening new stores in other Europe and Asian countries with closing domestic shops is although a good choice for increasing the international presence of the business. Nevertheless, the closing of domestic stores might extremely affect the incomes of the firm as above 90% of its stores are located domestically and closing those stores would ultimately minimize the profits of the company. Moreover, the company has a long term market position in United States which can not be produced soon in the new markets. The alternative would assist the company to expand in worldwide markets along with the elimination of issues raised in its local markets connected to its variety. The benefits and drawbacks for Alternative 1 are noted below;

Pros:

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

Cons:

• Loss of substantial revenues from the local markets.
• Boost in competitors.
• Distinctions in cultures could caused a failure of the brand name particularly in Asian nations.
• Low profits at preliminary levels.
• Increase in marketing expenditures to acquire market share.

Alternative-2: Introduction of Click and Recommendations of Cargonet Transportation Community Network Limited Case Analysis Stores

Alternative 2 includes the introduction of online market locations through generating an appropriate company's site. With the increased patterns towards online shopping, the online stores like Amazon, Alibaba etc. could pose a serious risk to the market share of business. Additionally, the rivals are shifting towards click and Recommendations of Cargonet Transportation Community Network Limited Case Help stores with Gap presenting Piperline. This shift towards online markets might reduce the earnings for business. In this scenario the business might think about presenting Click and Recommendations of Cargonet Transportation Community Network Limited Case Help stores. These stores with a low requirement of funds to settle would allow the business to reach worldwide markets, without ending its domestic stores. The advantages and disadvantages of option 2 are provided as follows;

Pros:

• Low financial investment
• Decreasing competitors danger
• Access to the world markets
• Increasing the size of consumer base
• Easy to manage
• Big Incomes
• Low Operating Expense
• Easy new market entrance

Cons:

• Danger to the market position
• Removal of brand name Individuality
• Elimination of the excellent store experience.
• Risk of decline in elite sales.

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

Another choice that the business might think about, is to expand towards the worldwide markets without closing its domestic shops that contributes to the major part of earnings of the company. The benefits and drawbacks connected to Alternative 3 are provided below;

Pros:

• Minimizing competition threat
• Access to the world markets
• Enlarging customer base
• Big Earnings
• Expedition of brand-new global markets.
• Boost in income from international markets.
• Profits diversification.
• Step towards being a strong global brand.

Cons:

• Continuation of concerns related to diversity.
• Differences in cultures could caused a failure of the brand especially in Asian countries.
• Low profits at preliminary levels.
• Boost in marketing expenditures to acquire market share.



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