Recommendations of Virtualchina Com The Building Of A Virtual Community Case Help

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Recommendations of Virtualchina Com The Building Of A Virtual Community Case Study Help

On the basis of above internal and external analysis of the company along with the evaluation of different alternatives, the company is advised to consider alternative 3. As alternative 3 would allow the business to broaden in worldwide markets without any decrease in its local earnings and any degeneration of its market position. The company might pursue alternative 1 which would make it possible for the business to focus on prospective global markets rather than the local markets but as the business is extremely dependent on the regional markets with 90% of its shops in the United States, there fore pursuing alternative 1 would result in the substantial decrease in business's profits.

Aletrnative-1: Expanding International Brick and Recommendations of Virtualchina Com The Building Of A Virtual Community Case Help Stores

Expansion towards global markets through opening brand-new shops in other Europe and Asian nations with closing domestic stores is although a great option for increasing the worldwide presence of the business. Nevertheless, the closing of domestic shops could highly affect the incomes of the firm as above 90% of its stores are located locally and closing those stores would eventually lower the earnings of the firm. The company has a long term market position in US which can not be produced quickly in the new markets. The alternative would assist the company to broaden in international markets along with the elimination of issues raised in its regional markets associated with its variety. The pros and Cons for Option 1 are noted below;

Pros:

• Expedition of brand-new international markets.
• Boost in earnings from worldwide markets.
• Elimination of problems related to variety.
• Revenue diversification.
• Step towards being a strong worldwide brand.

Cons:

• Loss of substantial profits from the local markets.
• Increase in competition.
• Differences in cultures might caused a failure of the brand especially in Asian countries.
• Low profits at preliminary levels.
• Boost in marketing expenses to get market share.

Alternative-2: Introduction of Click and Recommendations of Virtualchina Com The Building Of A Virtual Community Case Analysis Stores

With the increased patterns towards online shopping, the online shops like Amazon, Alibaba etc. might pose a severe hazard to the market share of business. In this scenario the business could think about presenting Click and Recommendations of Virtualchina Com The Building Of A Virtual Community Case Help shops. These stores with a low requirement of funds to settle would make it possible for the company to reach global markets, without ending its domestic shops.

Pros:

• Low financial investment
• Minimizing competition hazard
• Access to the world markets
• Increasing the size of consumer base
• Easy to handle
• Large Incomes
• Low Operating Costs
• Easy new market entryway

Cons:

• Threat to the marketplace position
• Elimination 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 alternative that the business could think about, is to broaden towards the global markets without closing its domestic stores that contributes to the huge part of earnings of the business. The advantages and disadvantages connected to Alternative 3 are given below;

Pros:

• Minimizing competition threat
• Access to the world markets
• Enlarging consumer base
• Large Earnings
• Exploration of new global markets.
• Boost in income from global markets.
• Earnings diversity.
• Action towards being a strong international brand.

Cons:

• Continuation of issues associated with diversity.
• Distinctions in cultures might resulted in a failure of the brand especially in Asian countries.
• Low profits at preliminary levels.
• Increase in marketing expenditures to get market share.



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