Recommendations of Does It Payoff Strategies Of Two Banking Giants Case Help
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Recommendations of Does It Payoff Strategies Of Two Banking Giants Case Study Solution
On the basis of above internal and external analysis of the business along with the evaluation of different options, the company is recommended to think about alternative 3. As alternative 3 would permit the company to expand in worldwide markets without any decrease in its regional profits and any degeneration of its market position. The business might pursue alternative 1 which would enable the business to focus on prospective global markets rather than the local markets however as the business is highly dependent on the local markets with 90% of its shops in the United States, there fore pursuing alternative 1 would result in the significant decrease in business's revenue.
Aletrnative-1: Expanding International Brick and Recommendations of Does It Payoff Strategies Of Two Banking Giants Case Help Stores
Expansion towards global markets through opening brand-new shops in other Europe and Asian countries with closing domestic shops is although a great option for increasing the worldwide presence of the business. The closing of domestic shops might highly impact the revenues of the firm as above 90% of its stores are situated domestically and closing those stores would ultimately lower the revenues of the company. The business has a long term market position in US which can not be generated soon in the brand-new markets. The option would assist the business to expand in worldwide markets along with the removal of issues raised in its local markets connected to its variety. The pros and Cons for Option 1 are listed below;
Pros:
• Exploration of brand-new international markets.
• Increase in income from worldwide markets.
• Elimination of issues associated with variety.
• Earnings diversification.
• Step towards being a strong global brand name.
Cons:
• Loss of extensive earnings from the local markets.
• Boost in competition.
• Differences in cultures might caused a failure of the brand specifically in Asian countries.
• Low earnings at preliminary levels.
• Boost in marketing expenditures to acquire market share.
Alternative-2: Introduction of Click and Recommendations of Does It Payoff Strategies Of Two Banking Giants Case Solution Stores
With the increased trends towards online shopping, the online shops like Amazon, Alibaba etc. might position an extreme risk to the market share of business. In this circumstance the company might think about introducing Click and Recommendations of Does It Payoff Strategies Of Two Banking Giants Case Analysis shops. These shops with a low requirement of funds to settle would enable the business to reach worldwide markets, without ending its domestic stores.
Pros:
• Low investment
• Minimizing competitors danger
• Access to the world markets
• Enlarging consumer base
• Easy to manage
• Big Incomes
• Low Operating Costs
• Easy new market entryway
Cons:
• Danger to the marketplace position
• Elimination of brand Originality
• Elimination of the excellent store experience.
• Danger of decline in elite sales.
Alternative-3: Expansion towards International Markets Without closing Domestic Stores
Another choice that the company could think about, is to expand towards the global markets without closing its domestic stores that adds to the major part of revenues of the business. The benefits and drawbacks related to Alternative 3 are provided listed below;
Pros:
• Minimizing competition risk
• Access to the world markets
• Increasing the size of customer base
• Big Earnings
• Expedition of brand-new global markets.
• Boost in income from international markets.
• Income diversity.
• Step towards being a strong international brand name.
Cons:
• Extension of concerns related to diversity.
• Distinctions in cultures could resulted in a failure of the brand name specifically in Asian nations.
• Low revenues at initial levels.
• Increase in marketing expenditures to get market share.
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