Recommendations of Dairy Farm Group Electronic Commerce Advantage Case Analysis

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Recommendations of Dairy Farm Group Electronic Commerce Advantage Case Study Analysis

On the basis of above internal and external analysis of the business along with the assessment of numerous options, the business is suggested to consider alternative 3. As alternative 3 would enable the company to broaden in international markets without any reduction in its regional revenues and any deterioration of its market position. The company might pursue alternative 1 which would allow the business to focus on potential global markets rather than the regional markets however as the company is highly dependent on the local markets with 90% of its stores in the United States, there fore pursuing option 1 would result in the considerable decrease in business's earnings.

Aletrnative-1: Expanding International Brick and Recommendations of Dairy Farm Group Electronic Commerce Advantage Case Help Stores

Growth towards global markets through opening brand-new stores in other Europe and Asian nations with closing domestic shops is although an excellent choice for increasing the worldwide existence of the company. However, the closing of domestic stores might extremely affect the earnings of the firm as above 90% of its shops lie locally and closing those stores would eventually decrease the incomes of the firm. Additionally, the business has a long term market position in US which can not be generated soon in the brand-new markets. The alternative would assist the company to broaden in worldwide markets along with the elimination of issues raised in its regional markets related to its variety. The advantages and disadvantages for Option 1 are noted below;

Pros:

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

Cons:

• Loss of substantial revenues from the local markets.
• Boost in competitors.
• Differences in cultures might resulted in a failure of the brand name specifically in Asian nations.
• Low earnings at initial levels.
• Increase in marketing expenditures to acquire market share.

Alternative-2: Introduction of Click and Recommendations of Dairy Farm Group Electronic Commerce Advantage Case Solution Stores

Alternative 2 includes the intro of online market locations through generating a correct business's site. With the increased trends towards online shopping, the online shops like Amazon, Alibaba etc. could present a serious hazard to the market share of company. The rivals are moving towards click and Recommendations of Dairy Farm Group Electronic Commerce Advantage Case Help shops with Gap presenting Piperline. This shift towards online markets could minimize the earnings for company. In this scenario the business could think about presenting Click and Recommendations of Dairy Farm Group Electronic Commerce Advantage Case Solution shops. These shops with a low requirement of funds to settle would allow the business to reach global markets, without ending its domestic stores. The advantages and disadvantages of alternative 2 are offered as follows;

Pros:

• Low investment
• Lowering competitors threat
• Access to the world markets
• Enlarging consumer base
• Easy to handle
• Large Revenues
• Low Operating Costs
• Easy new market entryway

Cons:

• Risk to the market position
• Elimination of brand Uniqueness
• Removal of the fantastic shop experience.
• Threat of decline in elite sales.

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

Another choice that the company might think about, is to expand towards the international markets without closing its domestic shops that adds to the major part of profits of the business. The pros and cons connected to Alternative 3 are given listed below;

Pros:

• Decreasing competitors risk
• Access to the world markets
• Increasing the size of customer base
• Large Incomes
• Expedition of brand-new worldwide markets.
• Boost in earnings from international markets.
• Earnings diversification.
• Action towards being a strong global brand name.

Cons:

• Continuation of issues connected to variety.
• Differences in cultures could led to a failure of the brand name particularly in Asian countries.
• Low profits at initial levels.
• Boost in marketing expenditures to gain market share.



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