Recommendations of Management Effect Pty Ltd Competing Beyond Knowledge Management Case Solution

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Recommendations of Management Effect Pty Ltd Competing Beyond Knowledge Management Case Study Analysis

On the basis of above internal and external analysis of the business together with the evaluation of different options, the company is recommended to think about alternative 3. As alternative 3 would permit the company to expand in international markets without any decrease in its local incomes and any deterioration of its market position. By thinking about Alternative 3, the company might preserve its store experience and brand name individuality. It could also think about alternative 2 that could allow the business to access the markets without any possible financial investment. Although, the company might pursue alternative 1 which would allow the company to focus on prospective international markets rather than the local markets but as the company is highly depending on the regional markets with 90% of its stores in the US, there fore pursuing option 1 would result in the considerable decrease in company's revenue. Therefore, the company is recommended to consider alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of Management Effect Pty Ltd Competing Beyond Knowledge Management Case Help Stores

The company has a long term market position in US which can not be generated quickly in the brand-new markets. The alternative would help the business to broaden in international markets along with the elimination of problems raised in its local markets related to its variety.

Pros:

• Expedition of brand-new global markets.
• Increase in earnings from global markets.
• Removal of issues associated with variety.
• Income diversification.
• Action towards being a strong worldwide brand.

Cons:

• Loss of substantial earnings from the regional markets.
• Increase in competitors.
• Differences in cultures might led to a failure of the brand name particularly in Asian countries.
• Low earnings at preliminary levels.
• Increase in marketing expenses to get market share.

Alternative-2: Introduction of Click and Recommendations of Management Effect Pty Ltd Competing Beyond Knowledge Management Case Analysis Stores

With the increased trends towards online shopping, the online stores like Amazon, Alibaba etc. might posture a serious danger to the market share of company. In this scenario the business could think about presenting Click and Recommendations of Management Effect Pty Ltd Competing Beyond Knowledge Management Case Analysis shops. These stores with a low requirement of funds to settle would enable the business to reach global markets, without ending its domestic stores.

Pros:

• Low investment
• Decreasing competition risk
• Access to the world markets
• Increasing the size of consumer base
• Easy to manage
• Big Profits
• Low Operating Costs
• Easy new market entryway

Cons:

• Threat to the market position
• Removal of brand Uniqueness
• Elimination of the great shop experience.
• Danger of decline in elite sales.

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

Another choice that the company might think about, is to expand towards the global markets without closing its domestic shops that adds to the major part of profits of the business. The advantages and disadvantages related to Alternative 3 are provided listed below;

Pros:

• Decreasing competition danger
• Access to the world markets
• Enlarging customer base
• Big Earnings
• Exploration of brand-new global markets.
• Increase in income from global markets.
• Revenue diversification.
• Action towards being a strong worldwide brand.

Cons:

• Extension of issues related to diversity.
• Distinctions in cultures might led to a failure of the brand particularly in Asian countries.
• Low earnings at initial levels.
• Increase in marketing expenditures to gain market share.



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