Recommendations of Bank Of Tokyo Case Solution

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Recommendations of Bank Of Tokyo Case Study Analysis

RecommendationsOn the basis of above internal and external analysis of the company along with the examination of different options, the company is suggested to consider alternative 3. As alternative 3 would enable the business to broaden in worldwide markets without any decrease in its regional incomes and any degeneration of its market position. By considering Alternative 3, the company might preserve its store experience and brand originality. It might also consider alternative 2 that might allow the business to access the markets without any possible investment. The company might pursue alternative 1 which would make it possible for the business to focus on possible international markets rather than the local markets but as the business is highly dependent on the local markets with 90% of its shops in the US, there fore pursuing option 1 would result in the substantial decrease in company's income. For that reason, the business is recommended to consider alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of Bank Of Tokyo Case Solution Stores

International SegmentsExpansion towards global markets through opening brand-new shops in other Europe and Asian nations with closing domestic shops is although a good alternative for increasing the worldwide presence of the company. The closing of domestic stores might highly affect the revenues of the company as above 90% of its shops are situated domestically and closing those shops would eventually reduce the earnings of the firm. Furthermore, the business has a long term market position in US which can not be created quickly in the brand-new markets. The alternative would help the business to broaden in international markets together with the removal of concerns raised in its local markets connected to its variety. The pros and Cons for Alternative 1 are listed below;

Pros:

• Exploration of new worldwide markets.
• Increase in earnings from worldwide markets.
• Removal of issues related to diversity.
• Income diversification.
• Step towards being a strong global brand name.

Cons:

• Loss of extensive revenues from the regional markets.
• Boost in competitors.
• Distinctions in cultures could led to a failure of the brand name specifically in Asian countries.
• Low incomes at preliminary levels.
• Increase in marketing expenditures to gain market share.

Alternative-2: Introduction of Click and Recommendations of Bank Of Tokyo Case Analysis Stores

With the increased patterns towards online shopping, the online shops like Amazon, Alibaba and so on could position an extreme risk to the market share of company. In this scenario the company might think about introducing Click and Recommendations of Bank Of Tokyo Case Solution stores. These shops with a low requirement of funds to settle would allow the business to reach international markets, without ending its domestic shops.

Pros:

• Low financial investment
• Lowering competition threat
• Access to the world markets
• Expanding consumer base
• Easy to manage
• Big Incomes
• Low Operating Costs
• Easy new market entryway

Cons:

• Hazard to the marketplace position
• Removal of brand Originality
• Elimination of the excellent store experience.
• Risk of decline in elite sales.

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

Another choice that the business might consider, is to expand towards the international markets without closing its domestic stores that adds to the huge part of profits of the company. The advantages and disadvantages associated with Alternative 3 are provided listed below;

Pros:

• Lowering competition threat
• Access to the world markets
• Increasing the size of consumer base
• Big Revenues
• Exploration of new global markets.
• Boost in profits from worldwide markets.
• Income diversification.
• Action towards being a strong worldwide brand name.

Cons:

• Continuation of problems associated with diversity.
• Distinctions in cultures could led to a failure of the brand name particularly in Asian countries.
• Low profits at preliminary levels.
• Increase in marketing expenses to acquire market share.



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