Recommendations of Chinas Electronic Commerce Initiative Leapfrogging Development Stages Case Solution

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Recommendations of Chinas Electronic Commerce Initiative Leapfrogging Development Stages Case Study Help

On the basis of above internal and external analysis of the business along with the assessment of different alternatives, the company is suggested to think about alternative 3. As alternative 3 would permit the company to broaden in worldwide markets without any reduction in its local incomes and any deterioration of its market position. The company could pursue alternative 1 which would enable the business to focus on prospective worldwide markets rather than the local markets however as the company is extremely dependent on the regional markets with 90% of its shops in the US, there fore pursuing option 1 would result in the significant decline in company's earnings.

Aletrnative-1: Expanding International Brick and Recommendations of Chinas Electronic Commerce Initiative Leapfrogging Development Stages Case Help Stores

Growth towards global markets through opening new shops in other Europe and Asian countries with closing domestic stores is although a great alternative for increasing the worldwide presence of the company. However, the closing of domestic shops could highly affect the incomes of the company as above 90% of its shops are located domestically and closing those shops would eventually decrease the revenues of the company. Furthermore, the company has a long term market position in US which can not be created soon in the new markets. The choice would help the company to broaden in worldwide markets along with the elimination of problems raised in its regional markets associated with its variety. The advantages and disadvantages for Alternative 1 are listed below;

Pros:

• Expedition of new global markets.
• Boost in revenue from global markets.
• Removal of concerns connected to variety.
• Income diversity.
• Action towards being a strong global brand.

Cons:

• Loss of extensive earnings from the local markets.
• Boost in competition.
• Differences in cultures might led to a failure of the brand specifically in Asian nations.
• Low incomes at preliminary levels.
• Boost in marketing expenses to acquire market share.

Alternative-2: Introduction of Click and Recommendations of Chinas Electronic Commerce Initiative Leapfrogging Development Stages Case Solution Stores

Alternative 2 consists of the introduction of online market places through producing a correct business's website. With the increased patterns towards online shopping, the online shops like Amazon, Alibaba etc. could present an extreme threat to the marketplace share of business. Additionally, the rivals are shifting towards click and Recommendations of Chinas Electronic Commerce Initiative Leapfrogging Development Stages Case Help shops with Space presenting Piperline. This shift towards online markets might reduce the earnings for company. In this circumstance the company might consider presenting Click and Recommendations of Chinas Electronic Commerce Initiative Leapfrogging Development Stages Case Help shops. These shops with a low requirement of funds to settle would make it possible for the business to reach global markets, without ending its domestic shops. The pros and cons of alternative 2 are offered as follows;

Pros:

• Low investment
• Decreasing competitors threat
• Access to the world markets
• Enlarging customer base
• Easy to manage
• Large Earnings
• Low Operating Expense
• Easy new market entrance

Cons:

• Risk to the market position
• Elimination of brand name Originality
• Removal of the terrific store experience.
• Threat of decline in elite sales.

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

Another choice that the business could think about, is to broaden towards the international markets without closing its domestic stores that adds to the major part of revenues of the company. The benefits and drawbacks connected to Alternative 3 are given below;

Pros:

• Reducing competition threat
• Access to the world markets
• Increasing the size of customer base
• Large Earnings
• Exploration of brand-new worldwide markets.
• Boost in earnings from worldwide markets.
• Revenue diversity.
• Step towards being a strong worldwide brand.

Cons:

• Extension of concerns associated with variety.
• Distinctions in cultures might caused a failure of the brand especially in Asian countries.
• Low incomes at preliminary levels.
• Boost in marketing expenditures to acquire market share.



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