Recommendations of Microsoft New Wine In An Old Bottle Case Solution

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Recommendations of Microsoft New Wine In An Old Bottle Case Study Help

On the basis of above internal and external analysis of the company together with the assessment of various alternatives, the company is recommended to consider alternative 3. As alternative 3 would allow the business to broaden in global markets without any reduction in its regional incomes and any wear and tear of its market position. By thinking about Alternative 3, the business might preserve its store experience and brand uniqueness. Nevertheless, it might likewise consider alternative 2 that could allow the company to access the marketplaces with no potential investment. Although, the business could pursue alternative 1 which would enable the company to concentrate on possible international markets rather than the local markets but as the business is extremely dependent on the regional markets with 90% of its stores in the United States, there fore pursuing alternative 1 would result in the substantial decrease in company's earnings. The business is advised to consider alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of Microsoft New Wine In An Old Bottle Case Analysis Stores

Expansion towards global markets through opening new stores in other Europe and Asian nations with closing domestic shops is although an excellent alternative for increasing the global existence of the business. The closing of domestic stores might highly affect the profits of the company as above 90% of its shops are situated locally and closing those shops would eventually minimize the earnings of the firm. The company has a long term market position in United States which can not be generated soon in the brand-new markets. The option would assist the company to expand in international markets together with 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 international markets.
• Increase in earnings from worldwide markets.
• Elimination of concerns related to diversity.
• Profits diversity.
• Action towards being a strong worldwide brand name.

Cons:

• Loss of substantial earnings from the regional markets.
• Increase in competitors.
• Differences in cultures might caused a failure of the brand especially in Asian countries.
• Low earnings at initial levels.
• Boost in marketing expenditures to gain market share.

Alternative-2: Introduction of Click and Recommendations of Microsoft New Wine In An Old Bottle Case Help Stores

Alternative 2 consists of the introduction of online market locations through creating a correct business's website. With the increased trends towards online shopping, the online stores like Amazon, Alibaba and so on might pose an extreme risk to the marketplace share of business. Furthermore, the competitors are moving towards click and Recommendations of Microsoft New Wine In An Old Bottle Case Solution stores with Gap presenting Piperline. This shift towards online markets might reduce the incomes for company. In this situation the company could think about introducing Click and Recommendations of Microsoft New Wine In An Old Bottle Case Analysis stores. These stores with a low requirement of funds to settle would allow the business to reach international markets, without ending its domestic stores. The benefits and drawbacks of option 2 are provided as follows;

Pros:

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

Cons:

• Threat to the marketplace position
• Elimination of brand name Individuality
• Removal of the great shop experience.
• Risk 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 contributes to the major part of earnings of the business. The pros and cons associated with Alternative 3 are provided listed below;

Pros:

• Reducing competitors risk
• Access to the world markets
• Enlarging consumer base
• Big Incomes
• Exploration of new international markets.
• Boost in earnings from worldwide markets.
• Income diversity.
• Step towards being a strong global brand name.

Cons:

• Extension of issues associated with variety.
• Distinctions in cultures might led to a failure of the brand name especially in Asian nations.
• Low earnings at initial levels.
• Increase in marketing expenditures to get market share.



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