Recommendations of The Global Software Industry In 2007 Case Help

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Recommendations of The Global Software Industry In 2007 Case Study Help

RecommendationsOn the basis of above internal and external analysis of the company along with the examination of different options, the company is advised to consider alternative 3. As alternative 3 would permit the business to broaden in global markets without any reduction in its regional incomes and any degeneration of its market position. The company might pursue alternative 1 which would allow the company to focus on potential worldwide markets rather than the regional markets however as the business is highly dependent on the local markets with 90% of its shops in the United States, there fore pursuing option 1 would result in the considerable decline in company's profits.

Aletrnative-1: Expanding International Brick and Recommendations of The Global Software Industry In 2007 Case Solution Stores

International SegmentsGrowth towards worldwide markets through opening new shops in other Europe and Asian nations with closing domestic stores is although an excellent option for increasing the global existence of the company. The closing of domestic shops might extremely impact the revenues of the company as above 90% of its stores are located locally and closing those stores would ultimately minimize the earnings of the company. The company has a long term market position in United States which can not be generated soon in the new markets. The choice would help the company to broaden in global markets in addition to the elimination of problems raised in its regional markets connected to its diversity. The pros and Cons for Option 1 are noted below;

Pros:

• Exploration of new worldwide markets.
• Increase in revenue from international markets.
• Elimination of problems associated with diversity.
• Income diversification.
• Action towards being a strong worldwide brand.

Cons:

• Loss of extensive profits from the regional markets.
• Increase in competitors.
• Differences in cultures could resulted in a failure of the brand name particularly in Asian countries.
• Low incomes at initial levels.
• Boost in marketing expenditures to gain market share.

Alternative-2: Introduction of Click and Recommendations of The Global Software Industry In 2007 Case Solution Stores

Alternative 2 includes the intro of online market places through generating a correct company's website. With the increased trends towards online shopping, the online stores like Amazon, Alibaba etc. might posture a serious threat to the market share of business. Additionally, the competitors are shifting towards click and Recommendations of The Global Software Industry In 2007 Case Analysis shops with Gap introducing Piperline. This shift towards online markets could reduce the revenues for company. In this circumstance the company could think about presenting Click and Recommendations of The Global Software Industry In 2007 Case Analysis stores. These stores with a low requirement of funds to settle would make it possible for the company to reach worldwide markets, without ending its domestic shops. The benefits and drawbacks of option 2 are provided as follows;

Pros:

• Low investment
• Lowering competition danger
• Access to the world markets
• Increasing the size of consumer base
• Easy to handle
• Large Revenues
• Low Operating Costs
• Easy brand-new market entrance

Cons:

• Danger to the marketplace position
• Removal of brand name Originality
• Elimination of the excellent store experience.
• Risk of decline in elite sales.

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

Another choice that the business might consider, is to expand towards the global markets without closing its domestic shops that contributes to the huge part of profits of the company. The benefits and drawbacks related to Alternative 3 are offered listed below;

Pros:

• Lowering competitors threat
• Access to the world markets
• Enlarging consumer base
• Big Incomes
• Expedition of brand-new international markets.
• Increase in earnings from international markets.
• Revenue diversity.
• Step towards being a strong global brand.

Cons:

• Continuation of problems connected to variety.
• Distinctions in cultures might caused a failure of the brand name specifically in Asian countries.
• Low incomes at initial levels.
• Increase in marketing expenses to get market share.



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