Recommendations of Tradecard Expanding Into China Case Solution

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Recommendations of Tradecard Expanding Into China Case Study Solution

On the basis of above internal and external analysis of the business together with the evaluation of numerous alternatives, the business is suggested to consider alternative 3. As alternative 3 would permit the business to expand in global markets without any reduction in its local incomes and any degeneration of its market position. By considering Alternative 3, the business might preserve its shop experience and brand originality. Nevertheless, it might likewise consider alternative 2 that might allow the business to access the markets without any potential investment. The business could pursue alternative 1 which would enable the business to focus on prospective global markets rather than the local markets but as the company is extremely reliant on the local markets with 90% of its stores in the United States, there fore pursuing alternative 1 would result in the significant decline in company's earnings. Therefore, the business is suggested to think about alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of Tradecard Expanding Into China Case Help Stores

The business has a long term market position in United States which can not be created soon in the brand-new markets. The choice would assist the business to expand in global markets along with the removal of problems raised in its local markets related to its diversity.

Pros:

• Exploration of brand-new international markets.
• Increase in income from worldwide markets.
• Elimination of problems connected to diversity.
• Income diversification.
• Step towards being a strong worldwide brand name.

Cons:

• Loss of comprehensive revenues from the regional markets.
• Increase in competition.
• Distinctions in cultures could led to a failure of the brand specifically in Asian nations.
• Low earnings at preliminary levels.
• Boost in marketing expenses to get market share.

Alternative-2: Introduction of Click and Recommendations of Tradecard Expanding Into China Case Help Stores

With the increased trends towards online shopping, the online shops like Amazon, Alibaba and so on could position a severe danger to the market share of company. In this scenario the business might think about presenting Click and Recommendations of Tradecard Expanding Into China Case Help stores. These shops with a low requirement of funds to settle would make it possible for the business to reach international markets, without ending its domestic stores.

Pros:

• Low investment
• Reducing competitors threat
• Access to the world markets
• Expanding customer base
• Easy to manage
• Large Incomes
• Low Operating Costs
• Easy new market entrance

Cons:

• Danger to the market position
• Removal of brand name Originality
• Removal of the excellent shop experience.
• Danger of decrease in elite sales.

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

Another choice that the company could consider, is to broaden towards the global markets without closing its domestic stores that adds to the major part of profits of the company. The advantages and disadvantages related to Alternative 3 are offered listed below;

Pros:

• Reducing competition risk
• Access to the world markets
• Increasing the size of consumer base
• Big Incomes
• Expedition of new worldwide markets.
• Increase in income from international markets.
• Revenue diversity.
• Step towards being a strong worldwide brand.

Cons:

• Extension of problems associated with variety.
• Distinctions in cultures could resulted in a failure of the brand name especially in Asian countries.
• Low revenues at initial levels.
• Boost in marketing expenditures to gain market share.



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