Recommendations of Travelling Via The Web The Changing Structure Of An Industry Case Help

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Recommendations of Travelling Via The Web The Changing Structure Of An Industry Case Study Solution

On the basis of above internal and external analysis of the company along with the assessment of different options, the company is suggested to consider alternative 3. As alternative 3 would permit the company to broaden in global markets without any decrease in its local earnings and any wear and tear of its market position. By thinking about Alternative 3, the company might maintain its shop experience and brand individuality. It might also think about alternative 2 that could allow the company to access the markets without any potential financial investment. Although, the business could pursue alternative 1 which would make it possible for the company to focus on possible global markets rather than the regional markets but as the company is highly based on the local markets with 90% of its shops in the United States, there fore pursuing alternative 1 would lead to the substantial decline in company's revenue. For that reason, the business is advised to think about alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of Travelling Via The Web The Changing Structure Of An Industry Case Analysis Stores

Expansion towards international markets through opening new stores in other Europe and Asian countries with closing domestic stores is although a great alternative for increasing the global existence of the business. Nevertheless, the closing of domestic stores might extremely impact the incomes of the firm as above 90% of its stores lie domestically and closing those stores would ultimately reduce the revenues of the company. Additionally, the company has a long term market position in United States which can not be generated soon in the brand-new markets. The option would help the company to broaden in global markets in addition to the removal of concerns raised in its local markets related to its diversity. The pros and Cons for Option 1 are noted below;

Pros:

• Expedition of brand-new global markets.
• Boost in income from global markets.
• Removal of problems connected to variety.
• Income diversification.
• Action towards being a strong international brand.

Cons:

• Loss of extensive profits from the local markets.
• Boost in competitors.
• Distinctions in cultures might resulted in a failure of the brand especially in Asian countries.
• Low earnings at initial levels.
• Increase in marketing expenditures to acquire market share.

Alternative-2: Introduction of Click and Recommendations of Travelling Via The Web The Changing Structure Of An Industry Case Help Stores

With the increased patterns towards online shopping, the online stores like Amazon, Alibaba and so on might pose an extreme risk to the market share of business. In this situation the company could think about introducing Click and Recommendations of Travelling Via The Web The Changing Structure Of An Industry Case Analysis stores. These stores with a low requirement of funds to settle would make it possible for the company to reach international markets, without ending its domestic stores.

Pros:

• Low financial investment
• Decreasing competition threat
• Access to the world markets
• Enlarging consumer base
• Easy to manage
• Big Earnings
• Low Operating Costs
• Easy brand-new market entrance

Cons:

• Hazard to the market position
• Removal of brand name Originality
• Removal of the terrific store experience.
• Risk of decline in elite sales.

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

Another choice that the business could think about, is to expand towards the worldwide markets without closing its domestic shops that adds to the major part of revenues of the business. The advantages and disadvantages related to Alternative 3 are offered listed below;

Pros:

• Decreasing competition hazard
• Access to the world markets
• Expanding customer base
• Big Revenues
• Exploration of brand-new global markets.
• Increase in profits from global markets.
• Earnings diversity.
• Action towards being a strong worldwide brand name.

Cons:

• Continuation of problems associated with variety.
• Distinctions in cultures could led to a failure of the brand name especially in Asian countries.
• Low profits at initial levels.
• Boost in marketing expenses to gain market share.



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