Recommendations of Lenovo Disruption Of The Pc Industry Case Solution

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Recommendations of Lenovo Disruption Of The Pc Industry Case Study Analysis

On the basis of above internal and external analysis of the company in addition to the evaluation of different alternatives, the business is suggested to think about alternative 3. As alternative 3 would permit the business to expand in international markets with no reduction in its local profits and any wear and tear of its market position. By considering Alternative 3, the company might keep its shop experience and brand name originality. It might also think about alternative 2 that might allow the company to access the markets without any potential investment. Although, the company might pursue alternative 1 which would enable the company to focus on prospective global markets instead of the local markets however as the business is highly depending on the regional markets with 90% of its stores in the US, there fore pursuing alternative 1 would result in the substantial decrease in business's earnings. Therefore, the company is advised to consider alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of Lenovo Disruption Of The Pc Industry Case Solution Stores

Expansion towards global markets through opening brand-new shops in other Europe and Asian countries with closing domestic stores is although a good alternative for increasing the global presence of the company. The closing of domestic shops might highly affect the profits of the firm as above 90% of its shops are located domestically and closing those shops would ultimately reduce the incomes of the company. Furthermore, the company has a long term market position in US which can not be generated soon in the brand-new markets. The alternative would assist the business to broaden in international markets in addition to the removal of concerns raised in its local markets connected to its diversity. The pros and Cons for Option 1 are listed below;

Pros:

• Exploration of new international markets.
• Increase in profits from international markets.
• Removal of concerns related to diversity.
• Earnings diversity.
• Action towards being a strong international brand name.

Cons:

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

Alternative-2: Introduction of Click and Recommendations of Lenovo Disruption Of The Pc Industry Case Help Stores

With the increased patterns towards online shopping, the online stores like Amazon, Alibaba etc. could posture a serious danger to the market share of business. In this situation the business might think about introducing Click and Recommendations of Lenovo Disruption Of The Pc Industry Case Analysis stores. These shops with a low requirement of funds to settle would enable the business to reach global markets, without ending its domestic shops.

Pros:

• Low financial investment
• Reducing competition hazard
• Access to the world markets
• Enlarging consumer base
• Easy to manage
• Big Revenues
• Low Operating Costs
• Easy new market entrance

Cons:

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

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

Another option that the business could consider, is to expand towards the worldwide markets without closing its domestic stores that adds to the major part of profits of the company. The advantages and disadvantages related to Alternative 3 are provided below;

Pros:

• Minimizing competitors hazard
• Access to the world markets
• Enlarging customer base
• Large Earnings
• Expedition of new global markets.
• Boost in income from worldwide markets.
• Profits diversification.
• Action towards being a strong worldwide brand.

Cons:

• Continuation of problems connected to variety.
• Differences in cultures might caused a failure of the brand name especially in Asian countries.
• Low incomes at preliminary levels.
• Boost in marketing expenditures to acquire market share.



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