Recommendations of Yue Yuen Industrial Holdings Limited A Making 200 Million Pairs Of Shoes A Year And Growing And B Site Selection Case Help

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Recommendations of Yue Yuen Industrial Holdings Limited A Making 200 Million Pairs Of Shoes A Year And Growing And B Site Selection Case Study Solution

On the basis of above internal and external analysis of the business along with the assessment of different alternatives, the company is advised to think about alternative 3. As alternative 3 would enable the business to broaden in international markets without any decrease in its regional incomes and any deterioration of its market position. The company could pursue alternative 1 which would enable the company to focus on prospective global markets rather than the regional markets but as the business is highly reliant on the regional markets with 90% of its shops in the United States, there fore pursuing alternative 1 would result in the considerable decline in business's revenue.

Aletrnative-1: Expanding International Brick and Recommendations of Yue Yuen Industrial Holdings Limited A Making 200 Million Pairs Of Shoes A Year And Growing And B Site Selection Case Analysis Stores

Expansion towards global markets through opening brand-new stores in other Europe and Asian countries with closing domestic shops is although a good alternative for increasing the worldwide existence of the business. The closing of domestic stores might highly impact the revenues of the firm as above 90% of its stores are located domestically and closing those stores would eventually decrease the profits of the company. The company has a long term market position in US which can not be created soon in the new markets. The choice would help the company to expand in worldwide markets together with the removal of issues raised in its local markets associated with its variety. The advantages and disadvantages for Alternative 1 are listed below;

Pros:

• Exploration of brand-new global markets.
• Increase in earnings from global markets.
• Elimination of problems related to diversity.
• Earnings diversity.
• Step towards being a strong international brand name.

Cons:

• Loss of comprehensive earnings from the local markets.
• Boost in competitors.
• Differences in cultures could caused a failure of the brand name particularly in Asian countries.
• Low revenues at preliminary levels.
• Boost in marketing expenses to get market share.

Alternative-2: Introduction of Click and Recommendations of Yue Yuen Industrial Holdings Limited A Making 200 Million Pairs Of Shoes A Year And Growing And B Site Selection Case Solution Stores

With the increased patterns towards online shopping, the online shops like Amazon, Alibaba and so on could pose a severe danger to the market share of company. In this circumstance the company might think about presenting Click and Recommendations of Yue Yuen Industrial Holdings Limited A Making 200 Million Pairs Of Shoes A Year And Growing And B Site Selection Case Analysis shops. These shops with a low requirement of funds to settle would allow the business to reach global markets, without ending its domestic stores.

Pros:

• Low financial investment
• Decreasing competitors risk
• Access to the world markets
• Expanding customer base
• Easy to handle
• Large Earnings
• Low Operating Costs
• Easy brand-new market entrance

Cons:

• Threat to the marketplace position
• Removal of brand Originality
• Elimination of the fantastic shop experience.
• Danger of decrease in elite sales.

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

Another option that the business might consider, is to broaden towards the worldwide markets without closing its domestic stores that adds to the major part of revenues of the business. The advantages and disadvantages associated with Alternative 3 are offered below;

Pros:

• Reducing competition risk
• Access to the world markets
• Enlarging customer base
• Big Incomes
• Expedition of brand-new global markets.
• Boost in revenue from worldwide markets.
• Income diversification.
• Step towards being a strong international brand name.

Cons:

• Extension of problems connected to diversity.
• Distinctions in cultures might led to a failure of the brand name specifically in Asian countries.
• Low earnings at preliminary levels.
• Increase in marketing expenses to get market share.



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