Recommendations of Hong Kong Economic Times Group Diversification And Differentiation Case Help

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Recommendations of Hong Kong Economic Times Group Diversification And Differentiation Case Study Help

On the basis of above internal and external analysis of the company along with the examination of various options, the company is suggested to consider alternative 3. As alternative 3 would permit the company to broaden in global markets without any decrease in its regional revenues and any deterioration of its market position. The business could pursue alternative 1 which would make it possible for the business to focus on possible global markets rather than the local markets however as the business is extremely dependent on the regional markets with 90% of its shops in the United States, there fore pursuing option 1 would result in the significant decline in company's profits.

Aletrnative-1: Expanding International Brick and Recommendations of Hong Kong Economic Times Group Diversification And Differentiation Case Help Stores

Expansion towards international markets through opening brand-new shops in other Europe and Asian nations with closing domestic shops is although a good alternative for increasing the worldwide presence of the company. Nevertheless, the closing of domestic shops might extremely affect the earnings of the firm as above 90% of its shops lie domestically and closing those stores would eventually reduce the revenues of the firm. The company has a long term market position in US which can not be produced soon in the brand-new markets. The alternative would help the company to broaden in international markets along with the elimination of concerns raised in its regional markets associated with its variety. The benefits and drawbacks for Alternative 1 are noted below;

Pros:

• Exploration of brand-new worldwide markets.
• Increase in income from international markets.
• Removal of concerns associated with diversity.
• Earnings diversification.
• Step towards being a strong worldwide brand.

Cons:

• Loss of comprehensive earnings from the regional markets.
• Boost in competition.
• Differences in cultures could led to a failure of the brand especially in Asian nations.
• Low profits at preliminary levels.
• Boost in marketing expenditures to acquire market share.

Alternative-2: Introduction of Click and Recommendations of Hong Kong Economic Times Group Diversification And Differentiation Case Help Stores

With the increased patterns towards online shopping, the online shops like Amazon, Alibaba etc. could present a serious threat to the market share of business. In this circumstance the company might think about presenting Click and Recommendations of Hong Kong Economic Times Group Diversification And Differentiation Case Solution shops. These stores with a low requirement of funds to settle would make it possible for the business to reach worldwide markets, without ending its domestic stores.

Pros:

• Low investment
• Reducing competitors threat
• Access to the world markets
• Enlarging consumer base
• Easy to manage
• Big Incomes
• Low Operating Expense
• Easy new market entrance

Cons:

• Danger to the marketplace position
• Removal of brand Uniqueness
• Elimination of the great store experience.
• Risk of decrease in elite sales.

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

Another option that the business might consider, is to expand towards the worldwide markets without closing its domestic stores that contributes to the huge part of earnings of the business. The advantages and disadvantages related to Alternative 3 are given below;

Pros:

• Lowering competition risk
• Access to the world markets
• Increasing the size of customer base
• Big Profits
• Expedition of brand-new international markets.
• Boost in profits from global markets.
• Earnings diversity.
• Action towards being a strong international brand name.

Cons:

• Extension of issues associated with variety.
• Differences in cultures might led to a failure of the brand name especially in Asian nations.
• Low revenues at preliminary levels.
• Increase in marketing expenses to gain market share.



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