Recommendations of Chinas Telecommunication Industry In 2004 Case Solution

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Recommendations of Chinas Telecommunication Industry In 2004 Case Study Analysis

On the basis of above internal and external analysis of the business together with the evaluation of different options, the business is recommended to think about alternative 3. As alternative 3 would enable the business to expand in global markets with no reduction in its local revenues and any degeneration of its market position. By considering Alternative 3, the business could keep its shop experience and brand originality. It might likewise consider alternative 2 that could permit the company to access the markets without any potential financial investment. Although, the business could pursue alternative 1 which would enable the company to focus on possible worldwide markets rather than the regional markets but as the business is highly based on the local markets with 90% of its stores in the US, there fore pursuing alternative 1 would lead to the significant decline in business's revenue. For that reason, the business is advised to think about alternative 3.

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

Growth towards worldwide markets through opening new shops in other Europe and Asian countries with closing domestic shops is although an excellent option for increasing the worldwide existence of the company. However, the closing of domestic stores could extremely impact the incomes of the company as above 90% of its stores lie domestically and closing those stores would ultimately lower the profits of the company. Additionally, the business has a long term market position in US which can not be created soon in the brand-new markets. The alternative would assist the company to expand in international markets in addition to the elimination of issues raised in its local markets associated with its variety. The pros and Cons for Option 1 are noted below;

Pros:

• Exploration of brand-new international markets.
• Boost in earnings from worldwide markets.
• Removal of issues related to variety.
• Earnings diversification.
• Action towards being a strong worldwide brand name.

Cons:

• Loss of substantial profits from the local markets.
• Increase in competition.
• Differences in cultures might led to a failure of the brand particularly in Asian nations.
• Low incomes at preliminary levels.
• Boost in marketing expenses to get market share.

Alternative-2: Introduction of Click and Recommendations of Chinas Telecommunication Industry In 2004 Case Analysis Stores

Alternative 2 includes the introduction of online market locations through producing a correct company's website. With the increased patterns towards online shopping, the online stores like Amazon, Alibaba and so on could pose an extreme risk to the marketplace share of company. The rivals are shifting towards click and Recommendations of Chinas Telecommunication Industry In 2004 Case Help shops with Space introducing Piperline. This shift towards online markets might minimize the profits for business. In this circumstance the company might consider presenting Click and Recommendations of Chinas Telecommunication Industry In 2004 Case Solution stores. These shops with a low requirement of funds to settle would allow the company to reach worldwide markets, without ending its domestic stores. The benefits and drawbacks of option 2 are given as follows;

Pros:

• Low financial investment
• Lowering competition threat
• Access to the world markets
• Enlarging consumer base
• Easy to handle
• Big Earnings
• Low Operating Costs
• Easy new market entryway

Cons:

• Hazard to the marketplace position
• Removal of brand name Originality
• Elimination of the great store experience.
• Threat of decrease in elite sales.

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

Another alternative that the business could think about, is to expand towards the global markets without closing its domestic shops that adds to the huge part of earnings of the company. The advantages and disadvantages related to Alternative 3 are offered listed below;

Pros:

• Reducing competition hazard
• Access to the world markets
• Enlarging consumer base
• Large Incomes
• Expedition of new worldwide markets.
• Boost in revenue from international markets.
• Income diversification.
• Step towards being a strong global brand name.

Cons:

• Extension of concerns connected to diversity.
• Differences in cultures might resulted in a failure of the brand specifically in Asian nations.
• Low earnings at preliminary levels.
• Boost in marketing expenses to get market share.



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