Recommendations of Compass Records Case Solution

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Recommendations of Compass Records Case Study Help

On the basis of above internal and external analysis of the company along with the examination of different options, the business is recommended to consider alternative 3. As alternative 3 would allow the business to broaden in international markets without any reduction in its local incomes and any wear and tear of its market position. The company could pursue alternative 1 which would make it possible for the company to focus on prospective global markets rather than the regional markets however as the business is highly reliant on the local markets with 90% of its shops in the United States, there fore pursuing option 1 would result in the substantial decrease in business's earnings.

Aletrnative-1: Expanding International Brick and Recommendations of Compass Records Case Solution Stores

The company has a long term market position in United States which can not be generated quickly in the brand-new markets. The option would assist the company to broaden in global markets along with the elimination of problems raised in its regional markets related to its diversity.

Pros:

• Expedition of new global markets.
• Boost in revenue from worldwide markets.
• Elimination of problems related to variety.
• Revenue diversity.
• Step towards being a strong international brand.

Cons:

• Loss of extensive profits from the local markets.
• Increase in competitors.
• Differences in cultures might resulted in a failure of the brand name particularly in Asian countries.
• Low incomes at initial levels.
• Boost in marketing expenses to acquire market share.

Alternative-2: Introduction of Click and Recommendations of Compass Records Case Analysis Stores

Alternative 2 includes the intro of online market places through producing an appropriate business's website. With the increased patterns towards online shopping, the online stores like Amazon, Alibaba and so on could posture an extreme risk to the market share of company. Moreover, the rivals are shifting towards click and Recommendations of Compass Records Case Solution stores with Gap presenting Piperline. This shift towards online markets might lower the profits for company. In this circumstance the business might think about presenting Click and Recommendations of Compass Records Case Help shops. These shops with a low requirement of funds to settle would enable the business to reach international markets, without ending its domestic shops. The benefits and drawbacks of option 2 are given as follows;

Pros:

• Low financial investment
• Lowering competitors risk
• Access to the world markets
• Increasing the size of consumer base
• Easy to manage
• Large Earnings
• Low Operating Costs
• Easy new market entrance

Cons:

• Risk to the market position
• Removal of brand Uniqueness
• Removal of the fantastic shop experience.
• Threat of decrease in elite sales.

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

Another alternative that the business might think about, is to broaden towards the global markets without closing its domestic stores that adds to the major part of revenues of the business. The pros and cons related to Alternative 3 are provided below;

Pros:

• Decreasing competition danger
• Access to the world markets
• Increasing the size of consumer base
• Large Profits
• Expedition of new global markets.
• Increase in income from global markets.
• Earnings diversification.
• Step towards being a strong international brand name.

Cons:

• Continuation of issues associated with diversity.
• Distinctions in cultures could led to a failure of the brand especially in Asian countries.
• Low profits at preliminary levels.
• Boost in marketing expenses to gain market share.



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