Recommendations of Samsung Electronics Managing Innovations In An Economic Downturn Case Solution

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Recommendations of Samsung Electronics Managing Innovations In An Economic Downturn Case Study Analysis

On the basis of above internal and external analysis of the company together with the examination of numerous options, the company is recommended to think about alternative 3. As alternative 3 would permit the company to expand in global markets with no reduction in its local incomes and any wear and tear of its market position. By considering Alternative 3, the business could preserve its shop experience and brand originality. It could likewise think about alternative 2 that could enable the company to access the markets without any potential investment. Although, the company could pursue alternative 1 which would make it possible for the business to concentrate on prospective global markets rather than the regional markets however as the business is highly based on the local markets with 90% of its stores in the United States, there fore pursuing option 1 would lead to the considerable decline in company's revenue. Therefore, the company is suggested to consider alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of Samsung Electronics Managing Innovations In An Economic Downturn Case Help Stores

Growth towards international markets through opening new stores in other Europe and Asian nations with closing domestic shops is although a good alternative for increasing the worldwide presence of the company. The closing of domestic stores could highly impact the profits of the firm as above 90% of its stores are located domestically and closing those shops would ultimately decrease the revenues of the firm. Moreover, the company has a long term market position in US which can not be created soon in the brand-new markets. The option would help the business to broaden in global markets along with the removal of concerns raised in its local markets associated with its diversity. The advantages and disadvantages for Alternative 1 are listed below;

Pros:

• Expedition of new worldwide markets.
• Boost in income from international markets.
• Elimination of problems related to variety.
• Profits diversification.
• Step towards being a strong worldwide brand.

Cons:

• Loss of substantial profits from the local markets.
• Increase in competitors.
• Distinctions in cultures might caused a failure of the brand name specifically in Asian nations.
• Low incomes at preliminary levels.
• Boost in marketing expenses to acquire market share.

Alternative-2: Introduction of Click and Recommendations of Samsung Electronics Managing Innovations In An Economic Downturn Case Solution Stores

With the increased patterns towards online shopping, the online shops like Amazon, Alibaba etc. could position a severe risk to the market share of company. In this scenario the business could think about presenting Click and Recommendations of Samsung Electronics Managing Innovations In An Economic Downturn Case Solution stores. These shops with a low requirement of funds to settle would allow the company to reach international markets, without ending its domestic shops.

Pros:

• Low investment
• Minimizing competition risk
• Access to the world markets
• Expanding customer base
• Easy to handle
• Big Incomes
• Low Operating Costs
• Easy brand-new market entrance

Cons:

• Hazard 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 option that the business might consider, is to expand towards the international markets without closing its domestic shops that adds to the major part of profits of the company. The pros and cons related to Alternative 3 are given listed below;

Pros:

• Lowering competition danger
• Access to the world markets
• Increasing the size of customer base
• Big Profits
• Expedition of brand-new global markets.
• Increase in earnings from international markets.
• Revenue diversity.
• Step towards being a strong international brand name.

Cons:

• Continuation of concerns associated with variety.
• Distinctions in cultures might led to a failure of the brand name especially in Asian countries.
• Low revenues at initial levels.
• Increase in marketing expenses to acquire market share.



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