Recommendations of Saps Platform Strategy In 2006 Case Help

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Recommendations of Saps Platform Strategy In 2006 Case Study Solution

On the basis of above internal and external analysis of the business in addition to the assessment of various alternatives, the business is advised to think about alternative 3. As alternative 3 would enable the business to expand in global markets without any decrease in its regional incomes and any deterioration of its market position. By considering Alternative 3, the company might keep its shop experience and brand name originality. However, it might likewise think about alternative 2 that might permit the business to access the markets with no potential investment. The company could pursue alternative 1 which would enable the business to focus on prospective international markets rather than the local markets but as the business is extremely reliant 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 business's earnings. Therefore, the business is advised to think about alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of Saps Platform Strategy In 2006 Case Analysis Stores

The business has a long term market position in US which can not be generated quickly in the new markets. The option would help the business to broaden in worldwide markets along with the removal of issues raised in its local markets related to its diversity.

Pros:

• Exploration of brand-new worldwide markets.
• Increase in revenue from worldwide markets.
• Removal of issues related to variety.
• Revenue diversity.
• Step towards being a strong worldwide brand.

Cons:

• Loss of comprehensive profits from the regional markets.
• Increase in competitors.
• Distinctions in cultures might resulted in a failure of the brand particularly in Asian countries.
• Low earnings at preliminary levels.
• Boost in marketing expenditures to acquire market share.

Alternative-2: Introduction of Click and Recommendations of Saps Platform Strategy In 2006 Case Help Stores

With the increased trends towards online shopping, the online stores like Amazon, Alibaba etc. could position a serious threat to the market share of business. In this circumstance the company might consider presenting Click and Recommendations of Saps Platform Strategy In 2006 Case Help shops. These stores with a low requirement of funds to settle would enable the business to reach worldwide markets, without ending its domestic shops.

Pros:

• Low investment
• Lowering competition hazard
• Access to the world markets
• Expanding customer base
• Easy to handle
• Large Earnings
• Low Operating Costs
• Easy new market entryway

Cons:

• Risk to the market position
• Removal of brand Originality
• Removal of the terrific store experience.
• Danger of decrease in elite sales.

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

Another alternative 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 revenues of the business. The advantages and disadvantages related to Alternative 3 are offered below;

Pros:

• Reducing competitors risk
• Access to the world markets
• Increasing the size of consumer base
• Big Profits
• Exploration of brand-new worldwide markets.
• Increase in profits from global markets.
• Revenue diversification.
• Action towards being a strong global brand.

Cons:

• Extension of problems associated with diversity.
• Differences in cultures could resulted in a failure of the brand especially in Asian nations.
• Low revenues at initial levels.
• Boost in marketing expenditures to acquire market share.



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