Recommendations of Hp At A Strategic Crossroad 2005 Case Analysis

Home >> Asia Case Research Centre >> Hp At A Strategic Crossroad 2005 >> Recommendations

Recommendations of Hp At A Strategic Crossroad 2005 Case Study Help

On the basis of above internal and external analysis of the company together with the assessment of different alternatives, the business is suggested to consider alternative 3. As alternative 3 would permit the company to expand in global markets with no reduction in its local incomes and any deterioration of its market position. By considering Alternative 3, the business could keep its shop experience and brand name uniqueness. However, it might also think about alternative 2 that could allow the company to access the markets with no prospective financial investment. Although, the company might pursue alternative 1 which would enable the business to focus on possible international markets instead of the regional markets but as the company is extremely dependent on the local markets with 90% of its shops in the US, there fore pursuing alternative 1 would result in the significant decrease in business's income. Therefore, the company is suggested to think about alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of Hp At A Strategic Crossroad 2005 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 company. The closing of domestic stores might highly affect the incomes of the firm as above 90% of its stores are situated domestically and closing those stores would eventually decrease the revenues of the firm. Furthermore, the company has a long term market position in United States which can not be created soon in the brand-new markets. The choice would help the company to expand in worldwide markets in addition to the elimination of issues raised in its regional markets associated with its diversity. The pros and Cons for Option 1 are noted below;

Pros:

• Expedition of brand-new worldwide markets.
• Boost in income from international markets.
• Elimination of concerns associated with diversity.
• Profits diversification.
• Step towards being a strong global brand.

Cons:

• Loss of substantial earnings from the local markets.
• Increase in competition.
• Differences in cultures could led to a failure of the brand name particularly in Asian countries.
• Low incomes at initial levels.
• Boost in marketing expenditures to gain market share.

Alternative-2: Introduction of Click and Recommendations of Hp At A Strategic Crossroad 2005 Case Help Stores

With the increased trends towards online shopping, the online shops like Amazon, Alibaba etc. could present a serious threat to the market share of business. In this situation the company might consider presenting Click and Recommendations of Hp At A Strategic Crossroad 2005 Case Help stores. These shops with a low requirement of funds to settle would make it possible for the company to reach worldwide markets, without ending its domestic shops.

Pros:

• Low financial investment
• Reducing competitors risk
• Access to the world markets
• Expanding consumer base
• Easy to handle
• Large Earnings
• Low Operating Expense
• Easy new market entrance

Cons:

• Hazard to the marketplace position
• Removal of brand Individuality
• Removal of the great shop experience.
• Threat of decline in elite sales.

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

Another option that the company could think about, is to expand towards the worldwide markets without closing its domestic stores that contributes to the major part of earnings of the company. The pros and cons associated with Alternative 3 are provided listed below;

Pros:

• Decreasing competition risk
• Access to the world markets
• Expanding customer base
• Big Earnings
• Expedition of brand-new worldwide markets.
• Boost in profits from global markets.
• Revenue diversity.
• Step towards being a strong international brand name.

Cons:

• Extension of problems related to variety.
• Distinctions in cultures might led to a failure of the brand name especially in Asian nations.
• Low revenues at initial levels.
• Increase in marketing expenditures to acquire market share.



This is sample work and not applicable to real case study. Please place the order on the website to get your own originally done case solution.