Recommendations of The Competitiveness Of The Chinese Produce Industry Case Analysis

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Recommendations of The Competitiveness Of The Chinese Produce Industry Case Study Solution

RecommendationsOn the basis of above internal and external analysis of the company along with the evaluation of different options, the company is advised to think about alternative 3. As alternative 3 would enable the business to expand in global markets without any decrease in its local profits and any wear and tear of its market position. By thinking about Alternative 3, the business could preserve its shop experience and brand originality. However, it might also consider alternative 2 that could allow the company to access the markets with no possible financial investment. Although, the company might pursue alternative 1 which would make it possible for the business to concentrate on possible global markets instead of the regional markets however as the company is highly dependent on the local markets with 90% of its shops in the US, there fore pursuing option 1 would result in the considerable decrease in business's profits. The business is suggested to consider alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of The Competitiveness Of The Chinese Produce Industry Case Solution Stores

International SegmentsThe business has a long term market position in United States which can not be produced soon in the brand-new markets. The option would help the business to broaden in worldwide markets along with the elimination of problems raised in its local markets related to its diversity.

Pros:

• Expedition of new worldwide markets.
• Boost in earnings from worldwide markets.
• Removal of issues connected to variety.
• Earnings diversification.
• Action towards being a strong worldwide brand name.

Cons:

• Loss of substantial revenues from the regional markets.
• Increase in competitors.
• Distinctions in cultures could led to a failure of the brand name specifically in Asian countries.
• Low incomes at preliminary levels.
• Increase in marketing expenditures to gain market share.

Alternative-2: Introduction of Click and Recommendations of The Competitiveness Of The Chinese Produce Industry Case Solution Stores

With the increased patterns towards online shopping, the online stores like Amazon, Alibaba etc. could present a serious hazard to the market share of company. In this situation the company might consider presenting Click and Recommendations of The Competitiveness Of The Chinese Produce Industry Case Help shops. These shops with a low requirement of funds to settle would allow the company to reach global markets, without ending its domestic shops.

Pros:

• Low financial investment
• Minimizing competition hazard
• Access to the world markets
• Expanding customer base
• Easy to handle
• Big Revenues
• Low Operating Expense
• Easy brand-new market entryway

Cons:

• Hazard to the market position
• Removal of brand name Uniqueness
• Elimination of the excellent shop experience.
• Threat of decrease in elite sales.

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

Another option that the company might think about, is to expand towards the global markets without closing its domestic stores that adds to the huge part of incomes of the business. The pros and cons connected to Alternative 3 are provided listed below;

Pros:

• Decreasing competition threat
• Access to the world markets
• Expanding consumer base
• Big Revenues
• Expedition of brand-new international markets.
• Boost in profits from international markets.
• Income diversity.
• Step towards being a strong worldwide brand name.

Cons:

• Extension of concerns associated with variety.
• Distinctions in cultures could led to a failure of the brand particularly in Asian nations.
• Low profits at initial levels.
• Boost in marketing expenses to acquire market share.



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