Recommendations of The China Telecom Hong Kong Ipo Money For Nothing Case Help

Home >> Asia Case Research Centre >> The China Telecom Hong Kong Ipo Money For Nothing >> Recommendations

Recommendations of The China Telecom Hong Kong Ipo Money For Nothing Case Study Analysis

On the basis of above internal and external analysis of the business together with the examination of different options, the business is recommended to think about alternative 3. As alternative 3 would enable the business to broaden in international markets without any reduction in its regional revenues and any deterioration of its market position. By considering Alternative 3, the company might preserve its store experience and brand name individuality. However, it might likewise consider alternative 2 that might allow the business to access the marketplaces without any potential financial investment. The company might pursue alternative 1 which would allow the company to focus on possible global markets rather than the local markets however as the business is extremely reliant on the regional markets with 90% of its shops in the United States, there fore pursuing option 1 would result in the considerable decline in business's profits. The business is advised to think about alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of The China Telecom Hong Kong Ipo Money For Nothing 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 choice for increasing the global existence of the company. Nevertheless, the closing of domestic shops might highly affect the earnings of the firm as above 90% of its shops are located locally and closing those shops would ultimately lower the profits of the firm. The company has a long term market position in United States which can not be generated quickly in the brand-new markets. The option would assist the business to broaden in worldwide markets along with the elimination of issues raised in its regional markets related to its diversity. The advantages and disadvantages for Option 1 are noted below;

Pros:

• Exploration of brand-new international markets.
• Increase in profits from global markets.
• Removal of problems connected to variety.
• Revenue diversity.
• Step towards being a strong worldwide brand name.

Cons:

• Loss of comprehensive incomes from the local markets.
• Boost in competition.
• Distinctions in cultures might caused a failure of the brand name particularly in Asian countries.
• Low profits at initial levels.
• Increase in marketing expenditures to get market share.

Alternative-2: Introduction of Click and Recommendations of The China Telecom Hong Kong Ipo Money For Nothing Case Analysis Stores

With the increased patterns towards online shopping, the online stores like Amazon, Alibaba and so on could present an extreme threat to the market share of company. In this situation the company might consider presenting Click and Recommendations of The China Telecom Hong Kong Ipo Money For Nothing Case Analysis shops. These stores with a low requirement of funds to settle would allow the business to reach worldwide markets, without ending its domestic stores.

Pros:

• Low investment
• Lowering competitors threat
• Access to the world markets
• Increasing the size of consumer base
• Easy to manage
• Large Earnings
• Low Operating Expense
• Easy new market entryway

Cons:

• Risk to the marketplace position
• Removal of brand Uniqueness
• Elimination 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 could think about, is to broaden towards the global markets without closing its domestic shops that adds to the major part of earnings of the company. The pros and cons associated with Alternative 3 are offered below;

Pros:

• Minimizing competitors threat
• Access to the world markets
• Enlarging customer base
• Large Incomes
• Expedition of new worldwide markets.
• Boost in revenue from global markets.
• Revenue diversity.
• Action towards being a strong global brand name.

Cons:

• Extension of issues connected to variety.
• Differences in cultures might resulted in a failure of the brand especially in Asian countries.
• Low profits at initial levels.
• Increase in marketing expenses to acquire market share.



This is sample work and not applicable to real case study. Please place the order on the website to get your own originally done case solution.