Recommendations of Wal Mart In China Every Day Low Price Case Analysis

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Recommendations of Wal Mart In China Every Day Low Price Case Study Solution

On the basis of above internal and external analysis of the business along with the assessment of numerous options, the business is advised to consider alternative 3. As alternative 3 would enable the company to expand in global markets without any decrease in its local profits and any degeneration of its market position. The business could pursue alternative 1 which would make it possible for the business to focus on potential worldwide markets rather than the regional markets but as the business is extremely dependent on the regional markets with 90% of its stores in the US, there fore pursuing option 1 would result in the substantial decrease in business's profits.

Aletrnative-1: Expanding International Brick and Recommendations of Wal Mart In China Every Day Low Price Case Help Stores

The business has a long term market position in US which can not be produced quickly in the new markets. The choice would assist the business to broaden in international markets along with the elimination of problems raised in its local markets related to its diversity.

Pros:

• Expedition of new worldwide markets.
• Boost in profits from global markets.
• Elimination of problems connected to variety.
• Earnings diversity.
• Action towards being a strong worldwide brand name.

Cons:

• Loss of substantial profits from the regional markets.
• Boost in competitors.
• Differences in cultures could caused a failure of the brand name specifically in Asian countries.
• Low revenues at preliminary levels.
• Increase in marketing expenses to acquire market share.

Alternative-2: Introduction of Click and Recommendations of Wal Mart In China Every Day Low Price Case Solution Stores

Alternative 2 includes the introduction of online market places through creating a proper company's website. With the increased trends towards online shopping, the online shops like Amazon, Alibaba etc. might present an extreme danger to the market share of company. The competitors are shifting towards click and Recommendations of Wal Mart In China Every Day Low Price Case Solution shops with Gap presenting Piperline. This shift towards online markets could lower the profits for company. In this circumstance the business might think about introducing Click and Recommendations of Wal Mart In China Every Day Low Price Case Solution stores. These stores with a low requirement of funds to settle would allow the company to reach worldwide markets, without ending its domestic stores. The advantages and disadvantages of alternative 2 are given as follows;

Pros:

• Low financial investment
• Decreasing competition danger
• Access to the world markets
• Expanding customer base
• Easy to handle
• Large Profits
• Low Operating Expense
• Easy brand-new market entryway

Cons:

• Threat to the marketplace position
• Removal of brand Uniqueness
• Elimination of the terrific store experience.
• Risk of decrease in elite sales.

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

Another choice that the company could think about, is to expand towards the global markets without closing its domestic shops that contributes to the major part of earnings of the business. The advantages and disadvantages associated with Alternative 3 are given below;

Pros:

• Reducing competition hazard
• Access to the world markets
• Enlarging customer base
• Big Incomes
• Exploration of brand-new global markets.
• Increase in income from global markets.
• Profits diversification.
• Action towards being a strong international brand.

Cons:

• Continuation of problems related to variety.
• Distinctions in cultures might resulted in a failure of the brand specifically in Asian countries.
• Low profits at preliminary levels.
• Boost in marketing expenditures to gain market share.



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