Recommendations of Wumart Stores Chinas Response To Wal Mart Case Help

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Recommendations of Wumart Stores Chinas Response To Wal Mart Case Study Analysis

On the basis of above internal and external analysis of the business along with the evaluation of numerous alternatives, the business is suggested to think about alternative 3. As alternative 3 would permit the business to broaden in global markets without any decrease in its local revenues and any wear and tear of its market position. The business might pursue alternative 1 which would enable the business to focus on prospective global markets rather than the regional markets however 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 substantial decrease in business's income.

Aletrnative-1: Expanding International Brick and Recommendations of Wumart Stores Chinas Response To Wal Mart Case Solution Stores

Growth towards global markets through opening brand-new stores in other Europe and Asian nations with closing domestic shops is although an excellent alternative for increasing the worldwide presence of the business. The closing of domestic shops might highly impact the revenues of the company as above 90% of its stores are situated domestically and closing those shops would eventually minimize the earnings of the firm. Moreover, the company has a long term market position in US which can not be produced soon in the brand-new markets. The alternative would assist the business to broaden in international markets along with the elimination of problems raised in its regional markets connected to its variety. The advantages and disadvantages for Option 1 are listed below;

Pros:

• Expedition of brand-new international markets.
• Increase in income from worldwide markets.
• Removal of issues related to variety.
• Profits diversity.
• Step towards being a strong global brand name.

Cons:

• Loss of comprehensive incomes from the local markets.
• Increase in competitors.
• Distinctions in cultures might led to a failure of the brand name specifically in Asian countries.
• Low earnings at preliminary levels.
• Boost in marketing expenditures to acquire market share.

Alternative-2: Introduction of Click and Recommendations of Wumart Stores Chinas Response To Wal Mart Case Solution Stores

With the increased patterns towards online shopping, the online shops like Amazon, Alibaba and so on might posture an extreme risk to the market share of business. In this situation the business could think about introducing Click and Recommendations of Wumart Stores Chinas Response To Wal Mart 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.

Pros:

• Low financial investment
• Reducing competition risk
• Access to the world markets
• Enlarging customer base
• Easy to handle
• Large Revenues
• Low Operating Costs
• Easy brand-new market entryway

Cons:

• Danger to the market position
• Removal of brand Uniqueness
• Elimination of the excellent store experience.
• Threat of decline in elite sales.

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

Another option that the company might consider, is to expand towards the global markets without closing its domestic shops that adds to the major part of profits of the company. The benefits and drawbacks related to Alternative 3 are offered below;

Pros:

• Minimizing competitors risk
• Access to the world markets
• Increasing the size of customer base
• Big Profits
• Exploration of brand-new worldwide markets.
• Increase in revenue from worldwide markets.
• Revenue diversification.
• Action towards being a strong international brand name.

Cons:

• Extension of problems related to diversity.
• Distinctions in cultures could led to a failure of the brand name specifically in Asian nations.
• Low profits at initial levels.
• Boost in marketing expenses to acquire market share.



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