Recommendations of Wal Mart In China 2012 Case Analysis

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Recommendations of Wal Mart In China 2012 Case Study Help

On the basis of above internal and external analysis of the company along with the assessment of numerous alternatives, the business is recommended to consider alternative 3. As alternative 3 would permit the company to expand in international markets without any decrease in its local earnings and any deterioration of its market position. The business could pursue alternative 1 which would make it possible for the company to focus on potential worldwide markets rather than the regional markets however as the business is extremely dependent on the regional markets with 90% of its shops in the United States, there fore pursuing option 1 would result in the substantial decline in company's profits.

Aletrnative-1: Expanding International Brick and Recommendations of Wal Mart In China 2012 Case Help Stores

Growth towards worldwide markets through opening brand-new stores in other Europe and Asian countries with closing domestic shops is although a great option for increasing the global presence of the company. However, the closing of domestic stores might extremely impact the revenues of the firm as above 90% of its stores lie domestically and closing those shops would ultimately decrease the profits of the company. The company has a long term market position in United States which can not be produced soon in the brand-new markets. The choice would help the business to expand in worldwide markets in addition to the removal of issues raised in its local markets related to its diversity. The advantages and disadvantages for Option 1 are noted below;

Pros:

• Exploration of brand-new global markets.
• Increase in profits from international markets.
• Removal of problems related to diversity.
• Profits diversification.
• Step towards being a strong international brand name.

Cons:

• Loss of substantial earnings from the local markets.
• Boost in competition.
• Differences in cultures could led to a failure of the brand particularly in Asian countries.
• Low incomes at preliminary levels.
• Boost in marketing expenditures to get market share.

Alternative-2: Introduction of Click and Recommendations of Wal Mart In China 2012 Case Analysis Stores

With the increased patterns towards online shopping, the online stores like Amazon, Alibaba etc. could present a severe hazard to the market share of business. In this circumstance the company could think about presenting Click and Recommendations of Wal Mart In China 2012 Case Analysis shops. These stores with a low requirement of funds to settle would enable the company to reach worldwide markets, without ending its domestic stores.

Pros:

• Low investment
• Decreasing competition danger
• Access to the world markets
• Increasing the size of consumer base
• Easy to manage
• Big Incomes
• Low Operating Costs
• Easy brand-new market entrance

Cons:

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

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

Another alternative that the company could think about, is to expand towards the global markets without closing its domestic shops that adds to the huge part of incomes of the company. The pros and cons associated with Alternative 3 are given below;

Pros:

• Lowering competition danger
• Access to the world markets
• Expanding customer base
• Large Earnings
• Expedition of new international markets.
• Boost in revenue from international markets.
• Income diversity.
• Step towards being a strong global brand.

Cons:

• Extension of issues connected to variety.
• Differences in cultures could led to a failure of the brand name particularly in Asian countries.
• Low incomes at preliminary levels.
• Increase in marketing expenses to acquire market share.



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