Recommendations of Seiko Watch Corporation Moving Upmarket Case Solution

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Recommendations of Seiko Watch Corporation Moving Upmarket Case Study Solution

On the basis of above internal and external analysis of the company along with the evaluation of various options, the business is suggested to consider alternative 3. As alternative 3 would permit the company to expand in international markets without any reduction in its regional revenues and any deterioration of its market position. By considering Alternative 3, the business could maintain its store experience and brand name uniqueness. It could also think about alternative 2 that could enable the business to access the markets without any potential investment. Although, the business could pursue alternative 1 which would make it possible for the business to focus on potential worldwide markets rather than the regional markets however as the business is highly depending on the local markets with 90% of its stores in the US, there fore pursuing alternative 1 would result in the substantial decline in business's income. The business is advised to think about alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of Seiko Watch Corporation Moving Upmarket Case Solution Stores

Growth towards international markets through opening new shops in other Europe and Asian countries with closing domestic shops is although a good option for increasing the global existence of the company. Nevertheless, the closing of domestic shops could highly impact the profits of the company as above 90% of its shops are located locally and closing those shops would eventually reduce the revenues of the firm. The company has a long term market position in United States which can not be generated quickly in the new markets. The option would assist the company to broaden in worldwide markets in addition to the elimination of concerns raised in its local markets associated with its variety. The advantages and disadvantages for Option 1 are listed below;

Pros:

• Expedition of brand-new international markets.
• Boost in income from worldwide markets.
• Removal of issues associated with diversity.
• Revenue diversity.
• Step towards being a strong global brand.

Cons:

• Loss of comprehensive profits from the regional markets.
• Increase in competitors.
• Differences in cultures could led to a failure of the brand name specifically in Asian nations.
• Low profits at preliminary levels.
• Boost in marketing expenditures to acquire market share.

Alternative-2: Introduction of Click and Recommendations of Seiko Watch Corporation Moving Upmarket Case Solution Stores

With the increased trends towards online shopping, the online shops like Amazon, Alibaba etc. could posture an extreme danger to the market share of business. In this situation the business might think about presenting Click and Recommendations of Seiko Watch Corporation Moving Upmarket 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
• Lowering competitors danger
• Access to the world markets
• Increasing the size of customer base
• Easy to manage
• Big Earnings
• Low Operating Expense
• Easy new market entryway

Cons:

• Threat to the marketplace position
• Elimination of brand name Uniqueness
• Elimination of the excellent shop experience.
• Risk of decrease in elite sales.

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

Another alternative that the company could think about, is to expand towards the international markets without closing its domestic stores that adds to the major part of profits of the business. The benefits and drawbacks related to Alternative 3 are provided below;

Pros:

• Lowering competitors hazard
• Access to the world markets
• Expanding consumer base
• Large Revenues
• Exploration of new worldwide markets.
• Increase in profits from worldwide markets.
• Revenue diversity.
• Step towards being a strong international brand name.

Cons:

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



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