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

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Recommendations of Yue Yuen Industrial Holdings Limited A Making 200 Million Pairs Of Shoes A Year And Growing Case Study Analysis

On the basis of above internal and external analysis of the business together with the assessment of various options, the business is advised to consider alternative 3. As alternative 3 would enable the company to expand in worldwide markets with no decrease in its local revenues and any degeneration of its market position. By considering Alternative 3, the business could maintain its shop experience and brand uniqueness. Nevertheless, it could also think about alternative 2 that could permit the company to access the marketplaces with no possible financial investment. Although, the company might pursue alternative 1 which would make it possible for the business to focus on potential global markets rather than the local markets however as the company is highly depending 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 revenue. The company is recommended to think about alternative 3.

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

Growth towards international markets through opening new shops in other Europe and Asian nations with closing domestic stores is although an excellent alternative for increasing the international presence of the business. The closing of domestic shops could extremely affect the revenues of the company as above 90% of its shops are located locally and closing those shops would ultimately reduce the revenues of the firm. The company has a long term market position in United States which can not be produced soon in the new markets. The option would assist the company to broaden in global markets in addition to the removal of concerns raised in its local markets associated with its diversity. The benefits and drawbacks for Option 1 are noted below;

Pros:

• Exploration of new international markets.
• Increase in earnings from worldwide markets.
• Removal of problems associated with variety.
• Profits diversification.
• Step towards being a strong international brand name.

Cons:

• Loss of extensive revenues from the local markets.
• Increase in competition.
• Distinctions in cultures could led to a failure of the brand particularly in Asian nations.
• Low revenues at initial levels.
• Boost in marketing expenditures 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 Case Analysis Stores

Alternative 2 consists of the introduction of online market places through creating a correct business's site. With the increased trends towards online shopping, the online stores like Amazon, Alibaba etc. might position a severe danger to the market share of company. The competitors are shifting towards click and Recommendations of Yue Yuen Industrial Holdings Limited A Making 200 Million Pairs Of Shoes A Year And Growing Case Help shops with Gap introducing Piperline. This shift towards online markets might reduce the incomes for company. In this scenario the business could consider introducing Click and Recommendations of Yue Yuen Industrial Holdings Limited A Making 200 Million Pairs Of Shoes A Year And Growing Case Analysis shops. These shops with a low requirement of funds to settle would enable the company to reach worldwide markets, without ending its domestic shops. The benefits and drawbacks of option 2 are provided as follows;

Pros:

• Low investment
• Minimizing competitors threat
• Access to the world markets
• Increasing the size of customer base
• Easy to manage
• Large Profits
• Low Operating Costs
• Easy new market entrance

Cons:

• Danger to the market position
• Removal of brand Originality
• Removal of the great shop experience.
• Danger of decrease in elite sales.

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

Another choice that the business might consider, is to broaden towards the global markets without closing its domestic shops that contributes to the huge part of earnings of the company. The pros and cons associated with Alternative 3 are given below;

Pros:

• Minimizing competitors risk
• Access to the world markets
• Enlarging consumer base
• Large Earnings
• Expedition of brand-new international markets.
• Boost in revenue from global markets.
• Earnings diversification.
• Action towards being a strong worldwide brand name.

Cons:

• Continuation of problems associated with diversity.
• Differences in cultures could caused a failure of the brand particularly in Asian countries.
• Low profits at preliminary levels.
• Boost in marketing expenditures to acquire market share.



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