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

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

RecommendationsOn the basis of above internal and external analysis of the company along with the evaluation of different options, the company is recommended to consider alternative 3. As alternative 3 would allow the company to expand in worldwide markets with no decrease in its regional profits and any degeneration of its market position. By considering Alternative 3, the business could keep its shop experience and brand name uniqueness. It might also think about alternative 2 that might enable the business to access the markets without any potential financial investment. Although, the company might pursue alternative 1 which would make it possible for the business to focus on prospective worldwide markets rather than the local markets but as the business is extremely depending on the regional markets with 90% of its stores in the United States, there fore pursuing alternative 1 would lead to the substantial decrease in business's income. Therefore, the company 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

International SegmentsExpansion 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 international presence of the company. The closing of domestic shops could highly affect the earnings of the company as above 90% of its stores are located domestically and closing those stores would eventually lower the revenues of the company. Moreover, the company has a long term market position in United States which can not be generated soon in the brand-new markets. The alternative would help the company to broaden in international markets along with the removal of issues raised in its local markets connected to its variety. The advantages and disadvantages for Alternative 1 are listed below;

Pros:

• Exploration of brand-new worldwide markets.
• Boost in revenue from international markets.
• Elimination of problems connected to variety.
• Income diversification.
• Action towards being a strong international brand.

Cons:

• Loss of extensive earnings from the regional markets.
• Boost in competition.
• Distinctions in cultures could resulted in a failure of the brand name particularly in Asian countries.
• Low incomes at initial levels.
• Boost in marketing expenses to gain market share.

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

Alternative 2 consists of the introduction of online market locations through generating a correct business's website. With the increased trends towards online shopping, the online shops like Amazon, Alibaba and so on could position an extreme hazard to the market share of company. The competitors are shifting towards click and Recommendations of The China Telecom Hong Kong Ipo Money For Nothing Case Help shops with Gap introducing Piperline. This shift towards online markets might reduce the revenues for business. In this circumstance the business might think about introducing Click and Recommendations of The China Telecom Hong Kong Ipo Money For Nothing Case Analysis shops. These shops with a low requirement of funds to settle would enable the company to reach worldwide markets, without ending its domestic stores. The advantages and disadvantages of option 2 are offered as follows;

Pros:

• Low investment
• Reducing competitors hazard
• Access to the world markets
• Increasing the size of consumer base
• Easy to handle
• Big Earnings
• Low Operating Costs
• Easy brand-new market entrance

Cons:

• Hazard to the market position
• Removal of brand name Originality
• Removal of the fantastic shop experience.
• Risk of decrease in elite sales.

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

Another option that the company might consider, is to broaden towards the global markets without closing its domestic shops that adds to the huge part of earnings of the business. The advantages and disadvantages connected to Alternative 3 are given below;

Pros:

• Decreasing competitors hazard
• Access to the world markets
• Expanding consumer base
• Large Profits
• Expedition of new international markets.
• Boost in profits from global markets.
• Revenue diversity.
• Step towards being a strong worldwide brand.

Cons:

• Extension of issues connected to variety.
• Differences in cultures could caused a failure of the brand name particularly in Asian countries.
• Low profits at initial levels.
• Boost in marketing expenses to gain market share.



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