Recommendations of Smartex An Electronic Cash System Case Analysis

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Recommendations of Smartex An Electronic Cash System Case Study Analysis

On the basis of above internal and external analysis of the company along with the evaluation of different alternatives, the business is recommended to think about alternative 3. As alternative 3 would allow the business to broaden in international markets without any reduction in its local incomes and any deterioration of its market position. The company could pursue alternative 1 which would make it possible for the business to focus on possible global markets rather than the local markets but as the company is highly dependent on the local markets with 90% of its stores in the US, there fore pursuing alternative 1 would result in the substantial decrease in company's profits.

Aletrnative-1: Expanding International Brick and Recommendations of Smartex An Electronic Cash System Case Solution Stores

Growth towards global markets through opening brand-new stores in other Europe and Asian countries with closing domestic stores is although an excellent alternative for increasing the worldwide presence of the business. The closing of domestic stores might extremely affect the profits of the firm as above 90% of its stores are situated locally and closing those stores would eventually decrease the incomes of the firm. The business has a long term market position in United States which can not be produced quickly in the brand-new markets. The choice would assist the company to broaden in worldwide markets along with the removal of issues raised in its local markets associated with its variety. The advantages and disadvantages for Option 1 are listed below;

Pros:

• Exploration of brand-new global markets.
• Boost in profits from worldwide markets.
• Removal of concerns associated with variety.
• Profits diversity.
• Action towards being a strong global brand name.

Cons:

• Loss of extensive incomes from the regional markets.
• Boost in competition.
• Differences in cultures could caused a failure of the brand specifically in Asian countries.
• Low revenues at preliminary levels.
• Boost in marketing expenditures to gain market share.

Alternative-2: Introduction of Click and Recommendations of Smartex An Electronic Cash System Case Analysis Stores

With the increased trends towards online shopping, the online stores like Amazon, Alibaba and so on could present a severe hazard to the market share of company. In this circumstance the company might consider introducing Click and Recommendations of Smartex An Electronic Cash System Case Analysis stores. These shops with a low requirement of funds to settle would enable the business to reach worldwide markets, without ending its domestic shops.

Pros:

• Low financial investment
• Reducing competitors danger
• Access to the world markets
• Enlarging customer base
• Easy to manage
• Big Earnings
• Low Operating Expense
• Easy new market entrance

Cons:

• Danger to the market position
• Removal of brand name Uniqueness
• Elimination of the excellent store experience.
• Danger of decline in elite sales.

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

Another option that the company might consider, is to expand towards the worldwide markets without closing its domestic stores that contributes to the major part of incomes of the company. The advantages and disadvantages related to Alternative 3 are offered listed below;

Pros:

• Lowering competition risk
• Access to the world markets
• Enlarging customer base
• Big Revenues
• Exploration of new worldwide markets.
• Increase in revenue from international markets.
• Earnings diversification.
• Step towards being a strong global brand name.

Cons:

• Continuation of concerns associated with diversity.
• Distinctions in cultures might resulted in a failure of the brand particularly in Asian nations.
• Low earnings at initial levels.
• Boost in marketing expenditures to get market share.



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