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Recommendations of Microsofts Diversification Strategy Case Study Analysis

On the basis of above internal and external analysis of the business along with the assessment of various options, the company is advised to think about alternative 3. As alternative 3 would permit the business to expand in international markets without any decrease in its regional earnings and any wear and tear of its market position. The company could pursue alternative 1 which would enable the business to focus on possible global 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 option 1 would result in the significant decline in company's profits.

Aletrnative-1: Expanding International Brick and Recommendations of Microsofts Diversification Strategy Case Analysis Stores

The company has a long term market position in United States which can not be produced quickly in the brand-new markets. The option would assist the company to expand in international markets along with the elimination of issues raised in its local markets related to its variety.

Pros:

• Expedition of new worldwide markets.
• Increase in earnings from global markets.
• Elimination of issues connected to diversity.
• Revenue diversification.
• Step towards being a strong global brand.

Cons:

• Loss of comprehensive incomes from the regional markets.
• Boost in competition.
• Distinctions in cultures could led to a failure of the brand name especially in Asian nations.
• Low revenues at initial levels.
• Boost in marketing expenses to gain market share.

Alternative-2: Introduction of Click and Recommendations of Microsofts Diversification Strategy Case Analysis Stores

With the increased patterns towards online shopping, the online shops like Amazon, Alibaba and so on could present a serious risk to the market share of company. In this scenario the business might consider presenting Click and Recommendations of Microsofts Diversification Strategy Case Solution shops. 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 shops.

Pros:

• Low investment
• Decreasing competition danger
• Access to the world markets
• Enlarging customer base
• Easy to manage
• Big Revenues
• Low Operating Expense
• Easy new market entryway

Cons:

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

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

Another choice that the company might think about, is to broaden towards the international markets without closing its domestic stores that adds to the huge part of profits of the business. The benefits and drawbacks connected to Alternative 3 are provided listed below;

Pros:

• Reducing competition risk
• Access to the world markets
• Enlarging consumer base
• Big Profits
• Expedition of brand-new international markets.
• Boost in profits from international markets.
• Revenue diversification.
• Action towards being a strong worldwide brand name.

Cons:

• Extension of problems associated with variety.
• Differences in cultures might led to a failure of the brand specifically in Asian nations.
• Low profits at initial levels.
• Boost in marketing expenses to acquire market share.



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