Recommendations of Issues Facing Smes In Hong Kong A Conceptual Framework Case Analysis

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On the basis of above internal and external analysis of the business along with the evaluation of different options, the company is advised to consider alternative 3. As alternative 3 would allow the company to expand in global markets without any decrease in its local earnings and any wear and tear of its market position. The business might pursue alternative 1 which would make it possible for the company to focus on possible global markets rather than the local markets however as the company is highly reliant 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 business's revenue.

Aletrnative-1: Expanding International Brick and Recommendations of Issues Facing Smes In Hong Kong A Conceptual Framework Case Analysis Stores

Expansion towards worldwide markets through opening brand-new stores in other Europe and Asian countries with closing domestic shops is although an excellent choice for increasing the global existence of the business. Nevertheless, the closing of domestic shops could extremely impact the incomes of the firm as above 90% of its stores are located domestically and closing those shops would eventually reduce the profits 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 alternative would assist the company to expand in international markets together with the elimination of concerns raised in its regional markets related to its variety. The benefits and drawbacks for Alternative 1 are listed below;

Pros:

• Expedition of new global markets.
• Increase in earnings from international markets.
• Elimination of concerns related to variety.
• Income diversification.
• Step towards being a strong global brand.

Cons:

• Loss of comprehensive revenues from the regional markets.
• Boost in competition.
• Differences in cultures could resulted in a failure of the brand name specifically in Asian countries.
• Low revenues at initial levels.
• Increase in marketing expenditures to gain market share.

Alternative-2: Introduction of Click and Recommendations of Issues Facing Smes In Hong Kong A Conceptual Framework Case Analysis Stores

Alternative 2 consists of the intro of online market places through creating an appropriate business's site. With the increased patterns towards online shopping, the online shops like Amazon, Alibaba and so on might present a severe threat to the market share of business. Additionally, the competitors are shifting towards click and Recommendations of Issues Facing Smes In Hong Kong A Conceptual Framework Case Solution stores with Gap presenting Piperline. This shift towards online markets might minimize the profits for company. In this scenario the business could consider introducing Click and Recommendations of Issues Facing Smes In Hong Kong A Conceptual Framework Case Analysis stores. 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. The pros and cons of alternative 2 are given as follows;

Pros:

• Low investment
• Lowering competition threat
• Access to the world markets
• Enlarging customer base
• Easy to handle
• Large Incomes
• Low Operating Costs
• Easy new market entryway

Cons:

• Risk to the marketplace position
• Elimination of brand Individuality
• Removal of the fantastic shop experience.
• Risk of decrease in elite sales.

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

Another alternative that the business could think about, is to expand towards the global markets without closing its domestic shops that contributes to the huge part of earnings of the business. The advantages and disadvantages associated with Alternative 3 are offered listed below;

Pros:

• Decreasing competition risk
• Access to the world markets
• Enlarging customer base
• Large Incomes
• Exploration of brand-new worldwide markets.
• Boost in profits from global markets.
• Income diversity.
• Action towards being a strong global brand name.

Cons:

• Continuation of problems associated with variety.
• Distinctions in cultures might resulted in a failure of the brand particularly in Asian countries.
• Low profits at preliminary levels.
• Increase in marketing expenses to get market share.



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