Recommendations of Extending An Electronic Trade Network To Sustain Competitive Advantage Case Help

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Recommendations of Extending An Electronic Trade Network To Sustain Competitive Advantage Case Study Solution

On the basis of above internal and external analysis of the company along with the examination of different alternatives, the company is suggested to consider alternative 3. As alternative 3 would enable the business to expand in worldwide markets without any reduction in its local profits and any degeneration of its market position. The business could pursue alternative 1 which would enable the business to focus on potential international markets rather than the regional markets but as the business 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 significant decline in business's income.

Aletrnative-1: Expanding International Brick and Recommendations of Extending An Electronic Trade Network To Sustain Competitive Advantage Case Help Stores

Expansion towards international markets through opening brand-new shops in other Europe and Asian countries with closing domestic stores is although an excellent alternative for increasing the worldwide existence of the business. Nevertheless, the closing of domestic shops might extremely impact the revenues of the firm as above 90% of its stores are located locally and closing those stores would ultimately decrease the profits of the company. Moreover, the business has a long term market position in United States which can not be produced soon in the brand-new markets. The alternative would help the company to expand in international markets along with the removal of concerns raised in its local markets related to its diversity. The benefits and drawbacks for Option 1 are noted below;

Pros:

• Expedition of brand-new worldwide markets.
• Increase in income from worldwide markets.
• Removal of issues related to variety.
• Income diversity.
• Step towards being a strong worldwide brand.

Cons:

• Loss of substantial profits from the regional markets.
• Increase in competition.
• Differences in cultures could caused a failure of the brand name particularly in Asian countries.
• Low profits at initial levels.
• Increase in marketing expenditures to gain market share.

Alternative-2: Introduction of Click and Recommendations of Extending An Electronic Trade Network To Sustain Competitive Advantage Case Solution Stores

Alternative 2 includes the intro of online market locations through creating a proper business's website. With the increased patterns towards online shopping, the online shops like Amazon, Alibaba etc. might position an extreme hazard to the marketplace share of business. Additionally, the rivals are shifting towards click and Recommendations of Extending An Electronic Trade Network To Sustain Competitive Advantage Case Help shops with Space presenting Piperline. This shift towards online markets could minimize the incomes for company. In this scenario the company could think about introducing Click and Recommendations of Extending An Electronic Trade Network To Sustain Competitive Advantage Case Analysis shops. These shops with a low requirement of funds to settle would make it possible for the company to reach global markets, without ending its domestic stores. The benefits and drawbacks of alternative 2 are provided as follows;

Pros:

• Low investment
• Lowering competition hazard
• Access to the world markets
• Expanding consumer base
• Easy to handle
• Large Incomes
• Low Operating Costs
• Easy new market entrance

Cons:

• Risk to the marketplace position
• Elimination of brand name Originality
• Removal of the fantastic store experience.
• Risk of decrease in elite sales.

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

Another option that the business could consider, is to broaden towards the global markets without closing its domestic stores that contributes to the major part of revenues of the business. The advantages and disadvantages related to Alternative 3 are given listed below;

Pros:

• Decreasing competitors threat
• Access to the world markets
• Increasing the size of consumer base
• Big Earnings
• Expedition of brand-new international markets.
• Boost in income from international markets.
• Earnings diversity.
• Step towards being a strong international brand name.

Cons:

• Extension of issues associated with variety.
• Distinctions in cultures could led to a failure of the brand name specifically in Asian nations.
• Low earnings at preliminary levels.
• Boost in marketing expenditures to gain market share.



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