Recommendations of Constructing An E Supply Chain At Eastman Chemical Company Case Analysis

Home >> Asia Case Research Centre >> Constructing An E Supply Chain At Eastman Chemical Company >> Recommendations

Recommendations of Constructing An E Supply Chain At Eastman Chemical Company Case Study Analysis

On the basis of above internal and external analysis of the company along with the evaluation of numerous alternatives, the company is advised to consider alternative 3. As alternative 3 would enable the business to broaden in worldwide markets without any reduction in its local revenues and any deterioration of its market position. The company could pursue alternative 1 which would allow the company to focus on potential international markets rather than the regional markets but as the company is highly reliant on the local markets with 90% of its shops in the United States, there fore pursuing option 1 would result in the substantial decline in business's revenue.

Aletrnative-1: Expanding International Brick and Recommendations of Constructing An E Supply Chain At Eastman Chemical Company Case Analysis Stores

Expansion towards global markets through opening brand-new stores in other Europe and Asian countries with closing domestic stores is although an excellent choice for increasing the global presence of the company. Nevertheless, the closing of domestic shops could extremely affect the incomes of the firm as above 90% of its stores are located locally and closing those shops would ultimately reduce the incomes of the company. Moreover, the business has a long term market position in US which can not be produced quickly in the new markets. The alternative would help the business to expand in global markets in addition to the removal of concerns raised in its regional markets associated with its diversity. The pros and Cons for Alternative 1 are listed below;

Pros:

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

Cons:

• Loss of extensive earnings from the regional markets.
• Boost in competitors.
• Distinctions in cultures might led to a failure of the brand particularly in Asian countries.
• Low incomes at preliminary levels.
• Increase in marketing expenses to acquire market share.

Alternative-2: Introduction of Click and Recommendations of Constructing An E Supply Chain At Eastman Chemical Company Case Analysis Stores

Alternative 2 includes the introduction of online market locations through generating a proper company's website. With the increased patterns towards online shopping, the online shops like Amazon, Alibaba etc. might posture a severe danger to the marketplace share of business. Furthermore, the competitors are moving towards click and Recommendations of Constructing An E Supply Chain At Eastman Chemical Company Case Help shops with Gap introducing Piperline. This shift towards online markets might reduce the incomes for company. In this scenario the company might consider presenting Click and Recommendations of Constructing An E Supply Chain At Eastman Chemical Company Case Analysis stores. These shops with a low requirement of funds to settle would enable the business to reach global markets, without ending its domestic shops. The benefits and drawbacks of alternative 2 are offered as follows;

Pros:

• Low investment
• Minimizing competitors risk
• Access to the world markets
• Enlarging consumer base
• Easy to manage
• Large Earnings
• Low Operating Expense
• Easy new market entrance

Cons:

• Danger to the marketplace position
• Elimination of brand Uniqueness
• Removal of the excellent shop experience.
• Risk of decrease 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 worldwide markets without closing its domestic stores that contributes to the huge part of revenues of the business. The benefits and drawbacks connected to Alternative 3 are given listed below;

Pros:

• Minimizing competition danger
• Access to the world markets
• Enlarging customer base
• Large Revenues
• Expedition of brand-new global markets.
• Boost in earnings from international markets.
• Earnings diversity.
• Action towards being a strong global brand.

Cons:

• Continuation of problems related to variety.
• Distinctions in cultures could resulted in a failure of the brand name specifically in Asian nations.
• Low profits at preliminary levels.
• Increase in marketing expenses to gain market share.



This is sample work and not applicable to real case study. Please place the order on the website to get your own originally done case solution.