Recommendations of Lenovo Being On Top In A Declining Industry Case Analysis

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Recommendations of Lenovo Being On Top In A Declining Industry Case Study Analysis

On the basis of above internal and external analysis of the business together with the evaluation of numerous alternatives, the company is advised to consider alternative 3. As alternative 3 would permit the business to broaden in international markets without any reduction in its local profits and any wear and tear of its market position. By thinking about Alternative 3, the business could maintain its shop experience and brand name individuality. However, it might likewise consider alternative 2 that might allow the company to access the markets without any possible financial investment. The company might pursue alternative 1 which would allow the company to focus on possible global markets rather than the regional markets however as the company is highly dependent on the regional markets with 90% of its stores in the US, there fore pursuing option 1 would result in the substantial decrease in business's income. The company is recommended to think about alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of Lenovo Being On Top In A Declining Industry Case Help Stores

The business has a long term market position in US which can not be generated quickly in the brand-new markets. The alternative would assist the business to expand in global markets along with the elimination of issues raised in its local markets related to its diversity.

Pros:

• Exploration of new global markets.
• Increase in profits from global markets.
• Elimination of issues connected to variety.
• Profits diversity.
• Action towards being a strong global brand name.

Cons:

• Loss of comprehensive profits from the regional markets.
• Boost in competitors.
• Differences in cultures might resulted in a failure of the brand name particularly in Asian nations.
• Low incomes at preliminary levels.
• Increase in marketing expenditures to acquire market share.

Alternative-2: Introduction of Click and Recommendations of Lenovo Being On Top In A Declining Industry Case Help Stores

With the increased patterns towards online shopping, the online stores like Amazon, Alibaba etc. might position an extreme risk to the market share of company. In this situation the business could consider introducing Click and Recommendations of Lenovo Being On Top In A Declining Industry Case Solution shops. These stores with a low requirement of funds to settle would make it possible for the business to reach international markets, without ending its domestic shops.

Pros:

• Low financial investment
• Reducing competitors danger
• Access to the world markets
• Increasing the size of customer base
• Easy to manage
• Big Incomes
• Low Operating Costs
• Easy new market entryway

Cons:

• Danger to the marketplace position
• Removal of brand name Uniqueness
• Removal of the excellent shop experience.
• Threat of decrease in elite sales.

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

Another choice that the business could think about, is to expand towards the worldwide markets without closing its domestic stores that contributes to the huge part of profits of the business. The advantages and disadvantages related to Alternative 3 are provided listed below;

Pros:

• Reducing competitors danger
• Access to the world markets
• Increasing the size of consumer base
• Large Revenues
• Expedition of brand-new international markets.
• Increase in profits from international markets.
• Income diversification.
• Step towards being a strong global brand name.

Cons:

• Extension of problems associated with diversity.
• Distinctions in cultures could caused a failure of the brand particularly in Asian countries.
• Low revenues at initial levels.
• Boost in marketing expenses to gain market share.



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