Recommendations of Wal Mart Stores Everyday Low Prices In China Case Help

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Recommendations of Wal Mart Stores Everyday Low Prices In China Case Study Analysis

On the basis of above internal and external analysis of the business in addition to the assessment of numerous alternatives, the business is advised to think about alternative 3. As alternative 3 would enable the business to broaden in worldwide markets without any reduction in its local incomes and any deterioration of its market position. By thinking about Alternative 3, the business might preserve its shop experience and brand name individuality. It could also consider alternative 2 that might permit the business to access the markets without any potential investment. The business might pursue alternative 1 which would allow the company to focus on potential worldwide markets rather than the regional markets however as the company is highly dependent on the regional markets with 90% of its stores in the US, there fore pursuing option 1 would result in the significant decline in company's income. The company is recommended to think about alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of Wal Mart Stores Everyday Low Prices In China Case Analysis Stores

Expansion towards worldwide markets through opening brand-new shops in other Europe and Asian countries with closing domestic stores is although a good choice for increasing the international existence of the business. However, the closing of domestic shops might extremely affect the profits of the firm as above 90% of its shops lie locally and closing those shops would eventually lower the earnings of the company. Moreover, the business has a long term market position in United States which can not be created soon in the brand-new markets. The option would assist the company to expand in worldwide markets together with the elimination of concerns raised in its local markets connected to its variety. The benefits and drawbacks for Option 1 are listed below;

Pros:

• Exploration of new worldwide markets.
• Increase in revenue from worldwide markets.
• Elimination of problems associated with diversity.
• Income diversity.
• Step towards being a strong worldwide brand.

Cons:

• Loss of substantial earnings from the regional markets.
• Boost in competitors.
• Distinctions in cultures could resulted in a failure of the brand name particularly in Asian countries.
• Low earnings at initial levels.
• Increase in marketing expenditures to get market share.

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

With the increased trends towards online shopping, the online shops like Amazon, Alibaba etc. might position a serious danger to the market share of business. In this situation the business might consider introducing Click and Recommendations of Wal Mart Stores Everyday Low Prices In China Case Help stores. These stores with a low requirement of funds to settle would allow the business to reach worldwide markets, without ending its domestic stores.

Pros:

• Low financial investment
• Reducing competition risk
• Access to the world markets
• Enlarging customer base
• Easy to manage
• Big Revenues
• Low Operating Expense
• Easy new market entryway

Cons:

• Hazard to the market position
• Removal of brand Individuality
• Elimination of the fantastic store experience.
• Danger of decline in elite sales.

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

Another choice that the company could consider, is to expand towards the international markets without closing its domestic stores that adds to the major part of incomes of the business. The pros and cons connected to Alternative 3 are offered listed below;

Pros:

• Lowering competition risk
• Access to the world markets
• Enlarging consumer base
• Large Earnings
• Exploration of new global markets.
• Increase in profits from global markets.
• Income diversification.
• Step towards being a strong worldwide brand.

Cons:

• Continuation of issues associated with variety.
• Distinctions in cultures might resulted in a failure of the brand particularly in Asian countries.
• Low revenues at initial levels.
• Increase in marketing expenses to get market share.



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