Recommendations of Yue Yuen Industrial Holdings Limited B Site Selection Case Analysis

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Recommendations of Yue Yuen Industrial Holdings Limited B Site Selection Case Study Analysis

On the basis of above internal and external analysis of the business along with the evaluation of numerous options, the business is suggested to consider alternative 3. As alternative 3 would permit the business to broaden in worldwide markets without any reduction in its local profits and any deterioration of its market position. The business might pursue alternative 1 which would enable the business to focus on possible international markets rather than the local markets however as the business is highly dependent on the regional markets with 90% of its shops in the US, there fore pursuing option 1 would result in the significant decrease in company's revenue.

Aletrnative-1: Expanding International Brick and Recommendations of Yue Yuen Industrial Holdings Limited B Site Selection Case Help Stores

Growth towards international markets through opening brand-new shops in other Europe and Asian nations with closing domestic stores is although a good alternative for increasing the global presence of the business. The closing of domestic stores could extremely affect the incomes of the company as above 90% of its shops are situated domestically and closing those shops would eventually decrease the incomes of the firm. The business has a long term market position in United States which can not be generated soon in the brand-new markets. The choice would assist the business to broaden in global markets in addition to the removal of problems raised in its regional markets connected to its variety. The pros and Cons for Alternative 1 are listed below;

Pros:

• Expedition of brand-new worldwide markets.
• Boost in revenue from worldwide markets.
• Removal of problems related to variety.
• Earnings diversification.
• Step towards being a strong international brand name.

Cons:

• Loss of substantial revenues from the local markets.
• Boost in competition.
• Distinctions in cultures might resulted in a failure of the brand name particularly in Asian countries.
• Low revenues at preliminary levels.
• Increase in marketing expenses to get market share.

Alternative-2: Introduction of Click and Recommendations of Yue Yuen Industrial Holdings Limited B Site Selection Case Help Stores

Alternative 2 includes the intro of online market locations through generating a correct company's website. With the increased trends towards online shopping, the online shops like Amazon, Alibaba etc. could present a serious risk to the marketplace share of business. The competitors are shifting towards click and Recommendations of Yue Yuen Industrial Holdings Limited B Site Selection Case Analysis stores with Gap presenting Piperline. This shift towards online markets could minimize the incomes for company. In this circumstance the business might think about presenting Click and Recommendations of Yue Yuen Industrial Holdings Limited B Site Selection Case Solution stores. These shops with a low requirement of funds to settle would make it possible for the business to reach international markets, without ending its domestic shops. The advantages and disadvantages of option 2 are offered as follows;

Pros:

• Low investment
• Minimizing competitors threat
• Access to the world markets
• Increasing the size of consumer base
• Easy to handle
• Large Profits
• Low Operating Costs
• Easy brand-new market entrance

Cons:

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

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

Another choice that the company might think about, is to expand towards the worldwide markets without closing its domestic stores that contributes to the huge part of earnings of the company. The advantages and disadvantages associated with Alternative 3 are offered below;

Pros:

• Decreasing competitors danger
• Access to the world markets
• Expanding consumer base
• Big Earnings
• Expedition of new worldwide markets.
• Increase in earnings from worldwide markets.
• Income diversity.
• Action towards being a strong worldwide brand.

Cons:

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



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