Recommendations of Haier How To Turn A Chinese Household Name Into A Global Brand Case Help

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Recommendations of Haier How To Turn A Chinese Household Name Into A Global Brand Case Study Solution

On the basis of above internal and external analysis of the company together with the assessment of numerous alternatives, the business is advised to consider alternative 3. As alternative 3 would permit the business to broaden in global markets without any reduction in its local incomes and any wear and tear of its market position. By thinking about Alternative 3, the business might preserve its shop experience and brand uniqueness. It might also think about alternative 2 that might enable the business to access the markets without any possible investment. Although, the business might pursue alternative 1 which would make it possible for the business to concentrate on potential international markets rather than the regional markets however as the business is extremely based on the local markets with 90% of its stores in the United States, there fore pursuing alternative 1 would result in the substantial decline in business's earnings. For that reason, the company is recommended to think about alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of Haier How To Turn A Chinese Household Name Into A Global Brand Case Solution Stores

Growth towards worldwide markets through opening new stores in other Europe and Asian nations with closing domestic shops is although a great choice for increasing the international existence of the business. However, the closing of domestic stores could extremely affect the profits of the firm as above 90% of its shops lie domestically and closing those stores would ultimately minimize the earnings of the company. Moreover, the company has a long term market position in United States which can not be generated soon in the brand-new markets. The option would help the company to broaden in international markets along with the removal of issues raised in its local markets connected to its diversity. The benefits and drawbacks for Option 1 are noted below;

Pros:

• Expedition of new global markets.
• Increase in income from worldwide markets.
• Removal of problems related to diversity.
• Income diversification.
• Step towards being a strong international brand name.

Cons:

• Loss of substantial earnings from the regional markets.
• Boost in competition.
• Distinctions in cultures could led to a failure of the brand particularly in Asian nations.
• Low revenues at preliminary levels.
• Increase in marketing expenses to gain market share.

Alternative-2: Introduction of Click and Recommendations of Haier How To Turn A Chinese Household Name Into A Global Brand Case Help Stores

With the increased patterns towards online shopping, the online stores like Amazon, Alibaba etc. could position an extreme hazard to the market share of company. In this circumstance the business could think about presenting Click and Recommendations of Haier How To Turn A Chinese Household Name Into A Global Brand Case Solution shops. These stores with a low requirement of funds to settle would make it possible for the business to reach global markets, without ending its domestic stores.

Pros:

• Low investment
• Decreasing competitors risk
• Access to the world markets
• Increasing the size of consumer base
• Easy to handle
• Large Earnings
• Low Operating Costs
• Easy brand-new market entryway

Cons:

• Threat to the market position
• Elimination of brand name Uniqueness
• Elimination of the terrific shop experience.
• Threat of decrease in elite sales.

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

Another choice that the business might think about, is to broaden towards the worldwide markets without closing its domestic stores that contributes to the major part of revenues of the company. The benefits and drawbacks associated with Alternative 3 are given below;

Pros:

• Reducing competitors risk
• Access to the world markets
• Enlarging customer base
• Big Incomes
• Exploration of new international markets.
• Increase in income from global markets.
• Income diversity.
• Step towards being a strong global brand name.

Cons:

• Extension of problems associated with diversity.
• Distinctions in cultures could led to a failure of the brand name particularly in Asian nations.
• Low revenues at preliminary levels.
• Increase in marketing expenditures to get market share.



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