Recommendations of Tencents Business Model Case Help

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Recommendations of Tencents Business Model Case Study Analysis

On the basis of above internal and external analysis of the company along with the evaluation of various alternatives, the business is suggested to consider alternative 3. As alternative 3 would enable the business to broaden in international markets without any reduction in its local revenues and any wear and tear of its market position. The company might pursue alternative 1 which would make it possible for the company to focus on potential worldwide markets rather than the local markets however as the company is extremely reliant on the regional markets with 90% of its shops in the United States, there fore pursuing alternative 1 would result in the substantial decrease in company's income.

Aletrnative-1: Expanding International Brick and Recommendations of Tencents Business Model Case Help Stores

Growth towards global markets through opening new stores in other Europe and Asian nations with closing domestic stores is although a good option for increasing the global existence of the company. Nevertheless, the closing of domestic shops could highly impact the revenues of the company as above 90% of its stores lie locally and closing those shops would ultimately reduce the revenues of the company. Moreover, the company has a long term market position in United States which can not be generated quickly in the brand-new markets. The alternative would help the company to expand in global markets along with the removal of problems raised in its local markets related to its variety. The pros and Cons for Alternative 1 are noted below;

Pros:

• Expedition of new global markets.
• Boost in income from global markets.
• Removal of issues related to diversity.
• Revenue diversity.
• Action towards being a strong worldwide brand.

Cons:

• Loss of extensive earnings from the regional markets.
• Increase in competition.
• Distinctions in cultures could led to a failure of the brand particularly in Asian countries.
• Low incomes at preliminary levels.
• Increase in marketing expenditures to gain market share.

Alternative-2: Introduction of Click and Recommendations of Tencents Business Model Case Analysis Stores

Alternative 2 consists of the intro of online market locations through generating a proper company's website. With the increased trends towards online shopping, the online shops like Amazon, Alibaba and so on could posture an extreme risk to the marketplace share of business. The competitors are moving towards click and Recommendations of Tencents Business Model Case Analysis stores with Space introducing Piperline. This shift towards online markets could reduce the incomes for company. In this scenario the business might think about introducing Click and Recommendations of Tencents Business Model Case Solution shops. These shops with a low requirement of funds to settle would make it possible for the business to reach worldwide markets, without ending its domestic stores. The advantages and disadvantages of option 2 are given as follows;

Pros:

• Low investment
• Minimizing competitors hazard
• Access to the world markets
• Enlarging consumer base
• Easy to handle
• Big Revenues
• Low Operating Costs
• Easy new market entryway

Cons:

• Threat to the marketplace position
• Removal of brand name Originality
• Removal of the excellent shop experience.
• Risk of decline in elite sales.

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

Another alternative that the company could consider, is to broaden towards the worldwide markets without closing its domestic shops that contributes to the huge part of incomes of the company. The pros and cons associated with Alternative 3 are offered listed below;

Pros:

• Reducing competition danger
• Access to the world markets
• Increasing the size of consumer base
• Big Revenues
• Expedition of new worldwide markets.
• Increase in revenue from international markets.
• Earnings diversity.
• Step towards being a strong global brand.

Cons:

• Continuation of concerns associated with variety.
• Differences in cultures could led to a failure of the brand particularly in Asian countries.
• Low incomes at initial levels.
• Increase in marketing expenses to acquire market share.



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