Recommendations of Disney Losing Magic In The Middle Kingdom Case Help

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Recommendations of Disney Losing Magic In The Middle Kingdom Case Study Analysis

On the basis of above internal and external analysis of the business along with the examination of various options, the company is advised to think about alternative 3. As alternative 3 would permit the company to expand in worldwide markets without any reduction in its local earnings and any deterioration of its market position. The company might pursue alternative 1 which would allow the business to focus on prospective global markets rather than the local markets but as the company is highly reliant on the regional markets with 90% of its shops in the United States, there fore pursuing option 1 would result in the considerable decrease in company's revenue.

Aletrnative-1: Expanding International Brick and Recommendations of Disney Losing Magic In The Middle Kingdom Case Analysis Stores

Expansion towards global markets through opening brand-new stores in other Europe and Asian countries with closing domestic shops is although a good alternative for increasing the worldwide existence of the business. Nevertheless, the closing of domestic stores might highly impact the incomes of the firm as above 90% of its stores are located locally and closing those shops would eventually decrease the incomes of the firm. The business has a long term market position in United States which can not be created quickly in the new markets. The alternative would assist the company to expand in worldwide markets together with the elimination of issues raised in its regional markets related to its diversity. The advantages and disadvantages for Option 1 are noted below;

Pros:

• Exploration of new international markets.
• Increase in earnings from worldwide markets.
• Elimination of concerns related to variety.
• Income diversification.
• Action towards being a strong worldwide brand.

Cons:

• Loss of extensive incomes from the local markets.
• Increase in competition.
• Differences in cultures might resulted in a failure of the brand especially in Asian countries.
• Low profits at preliminary levels.
• Boost in marketing expenses to gain market share.

Alternative-2: Introduction of Click and Recommendations of Disney Losing Magic In The Middle Kingdom Case Analysis Stores

Alternative 2 includes the introduction of online market locations through generating an appropriate company's site. With the increased trends towards online shopping, the online shops like Amazon, Alibaba etc. could pose a severe risk to the marketplace share of business. Furthermore, the competitors are shifting towards click and Recommendations of Disney Losing Magic In The Middle Kingdom Case Analysis stores with Gap presenting Piperline. This shift towards online markets might lower the revenues for business. In this scenario the business might consider presenting Click and Recommendations of Disney Losing Magic In The Middle Kingdom Case Help stores. These stores with a low requirement of funds to settle would allow the company to reach worldwide markets, without ending its domestic shops. The benefits and drawbacks of alternative 2 are given as follows;

Pros:

• Low investment
• Lowering competition hazard
• Access to the world markets
• Enlarging consumer base
• Easy to manage
• Large Earnings
• Low Operating Expense
• Easy brand-new market entryway

Cons:

• Danger to the marketplace position
• Removal of brand name Individuality
• Elimination 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 could think about, is to broaden towards the worldwide markets without closing its domestic shops that adds to the major part of earnings of the company. The advantages and disadvantages associated with Alternative 3 are provided below;

Pros:

• Lowering competitors danger
• Access to the world markets
• Expanding consumer base
• Big Earnings
• Expedition of brand-new international markets.
• Increase in earnings from global markets.
• Income diversification.
• Action towards being a strong global brand.

Cons:

• Extension of issues associated with diversity.
• Distinctions in cultures might caused a failure of the brand specifically in Asian nations.
• Low incomes at preliminary levels.
• Boost in marketing expenses to get market share.



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