Recommendations of Traxon Asia Ltd Case Analysis

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Recommendations of Traxon Asia Ltd Case Study Solution

On the basis of above internal and external analysis of the company together with the assessment of various options, the company is recommended to think about alternative 3. As alternative 3 would permit the company to expand in global markets with no reduction in its local incomes and any degeneration of its market position. By considering Alternative 3, the company might maintain its shop experience and brand name uniqueness. It could likewise think about alternative 2 that could allow the company to access the markets without any possible financial investment. Although, the business might pursue alternative 1 which would allow the company to concentrate on prospective international markets rather than the local markets but as the business is highly dependent on the local markets with 90% of its stores in the United States, there fore pursuing alternative 1 would result in the considerable decline in business's earnings. The company is suggested to consider alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of Traxon Asia Ltd Case Solution Stores

Expansion towards global markets through opening brand-new stores in other Europe and Asian nations with closing domestic shops is although a great choice for increasing the global existence of the business. The closing of domestic shops might highly impact the earnings of the company as above 90% of its shops are located locally and closing those shops would ultimately reduce the revenues of the company. Additionally, the company has a long term market position in US which can not be created quickly in the new markets. The option would assist the company to expand in worldwide markets together with the removal of issues raised in its local markets connected to its diversity. The advantages and disadvantages for Alternative 1 are listed below;

Pros:

• Exploration of brand-new global markets.
• Boost in profits from worldwide markets.
• Removal of issues related to variety.
• Profits diversification.
• Action towards being a strong global brand.

Cons:

• Loss of comprehensive profits from the regional markets.
• Increase in competitors.
• Differences in cultures could led to a failure of the brand name particularly in Asian nations.
• Low earnings at preliminary levels.
• Boost in marketing expenditures to get market share.

Alternative-2: Introduction of Click and Recommendations of Traxon Asia Ltd Case Analysis 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 etc. could pose a serious risk to the market share of business. Moreover, the competitors are shifting towards click and Recommendations of Traxon Asia Ltd Case Help shops with Space introducing Piperline. This shift towards online markets might reduce the revenues for business. In this situation the company might consider introducing Click and Recommendations of Traxon Asia Ltd Case Analysis stores. These stores with a low requirement of funds to settle would enable the company to reach international markets, without ending its domestic shops. The benefits and drawbacks of option 2 are offered as follows;

Pros:

• Low financial investment
• Minimizing competitors threat
• Access to the world markets
• Increasing the size of consumer base
• Easy to handle
• Large Earnings
• Low Operating Expense
• Easy new market entrance

Cons:

• Risk to the market position
• Removal of brand Individuality
• Removal of the great store experience.
• Risk of decline 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 huge part of incomes of the company. The pros and cons connected to Alternative 3 are given below;

Pros:

• Minimizing competition threat
• Access to the world markets
• Increasing the size of consumer base
• Large Incomes
• Exploration of new international markets.
• Increase in revenue from global markets.
• Revenue diversification.
• Action towards being a strong global brand name.

Cons:

• Extension of problems associated with variety.
• Differences in cultures could resulted in a failure of the brand specifically in Asian nations.
• Low revenues at preliminary levels.
• Increase in marketing expenditures to get market share.



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