Recommendations of Chinas Home Appliances Industry 2004 Case Help

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Recommendations of Chinas Home Appliances Industry 2004 Case Study Solution

On the basis of above internal and external analysis of the company along with the examination of various options, the company is suggested to think about alternative 3. As alternative 3 would permit the business to expand in global markets without any reduction in its local earnings and any wear and tear of its market position. The business might pursue alternative 1 which would make it possible for the company to focus on potential global markets rather than the local markets however as the business is highly 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 business's revenue.

Aletrnative-1: Expanding International Brick and Recommendations of Chinas Home Appliances Industry 2004 Case Analysis Stores

The business has a long term market position in United States which can not be created soon in the new markets. The choice would help the business to expand in international markets along with the elimination of issues raised in its regional markets related to its diversity.

Pros:

• Expedition of new international markets.
• Increase in income from worldwide markets.
• Removal of issues associated with variety.
• Revenue diversity.
• Action towards being a strong global brand.

Cons:

• Loss of extensive revenues from the regional markets.
• Boost in competitors.
• Differences in cultures could resulted in a failure of the brand name especially in Asian nations.
• Low profits at initial levels.
• Boost in marketing expenses to acquire market share.

Alternative-2: Introduction of Click and Recommendations of Chinas Home Appliances Industry 2004 Case Analysis Stores

Alternative 2 consists of the intro of online market locations through generating an appropriate business's website. With the increased patterns towards online shopping, the online shops like Amazon, Alibaba and so on might pose a serious risk to the market share of company. Moreover, the competitors are shifting towards click and Recommendations of Chinas Home Appliances Industry 2004 Case Solution shops with Gap presenting Piperline. This shift towards online markets might lower the incomes for business. In this scenario the business could think about introducing Click and Recommendations of Chinas Home Appliances Industry 2004 Case Help shops. These shops with a low requirement of funds to settle would allow the business to reach international markets, without ending its domestic stores. The pros and cons of option 2 are provided as follows;

Pros:

• Low investment
• Reducing competitors hazard
• Access to the world markets
• Increasing the size of customer base
• Easy to manage
• Large Earnings
• Low Operating Costs
• Easy brand-new market entrance

Cons:

• Risk to the market position
• Elimination of brand Originality
• Removal of the great shop experience.
• Danger of decline in elite sales.

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

Another alternative that the company might consider, is to broaden towards the international markets without closing its domestic stores that adds to the major part of earnings of the company. The advantages and disadvantages connected to Alternative 3 are given listed below;

Pros:

• Lowering competitors danger
• Access to the world markets
• Expanding consumer base
• Big Earnings
• Expedition of brand-new worldwide markets.
• Boost in earnings from international markets.
• Profits diversity.
• Action towards being a strong international brand name.

Cons:

• Continuation of issues connected to variety.
• Differences in cultures might caused a failure of the brand name specifically in Asian countries.
• Low profits at initial levels.
• Increase in marketing expenses to gain market share.



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