Recommendations of Eastboro Machine Tools Corporation Case Solution

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Recommendations of Eastboro Machine Tools Corporation Case Study Analysis

On the basis of above internal and external analysis of the business together with the assessment of various alternatives, the company is suggested to consider alternative 3. As alternative 3 would allow the company to broaden in international markets with no decrease in its regional incomes and any wear and tear of its market position. By thinking about Alternative 3, the business could preserve its shop experience and brand originality. Nevertheless, it could likewise consider alternative 2 that might enable the business to access the marketplaces without any potential financial investment. Although, the company might pursue alternative 1 which would enable the company to focus on possible worldwide markets instead of the local markets however as the business is highly based on the local markets with 90% of its shops in the US, there fore pursuing alternative 1 would result in the considerable decline in company's profits. Therefore, the business is advised to think about alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of Eastboro Machine Tools Corporation Case Solution Stores

The business has a long term market position in United States which can not be produced quickly in the brand-new markets. The option would help the business to broaden in international markets along with the elimination of concerns raised in its local markets related to its variety.

Pros:

• Exploration of new worldwide markets.
• Boost in revenue from international markets.
• Removal of problems connected to diversity.
• Income diversification.
• Action towards being a strong worldwide brand.

Cons:

• Loss of substantial earnings from the regional markets.
• Boost in competitors.
• Distinctions in cultures could resulted in a failure of the brand especially in Asian countries.
• Low incomes at preliminary levels.
• Boost in marketing expenses to gain market share.

Alternative-2: Introduction of Click and Recommendations of Eastboro Machine Tools Corporation Case Solution Stores

Alternative 2 consists of the intro of online market locations through creating a correct business's website. With the increased patterns towards online shopping, the online shops like Amazon, Alibaba etc. could position a severe threat to the market share of business. Moreover, the rivals are shifting towards click and Recommendations of Eastboro Machine Tools Corporation Case Analysis stores with Space introducing Piperline. This shift towards online markets could decrease the revenues for business. In this scenario the company could think about presenting Click and Recommendations of Eastboro Machine Tools Corporation Case Solution stores. These stores with a low requirement of funds to settle would make it possible for the business to reach worldwide markets, without ending its domestic shops. The benefits and drawbacks of option 2 are given as follows;

Pros:

• Low investment
• Lowering competition hazard
• Access to the world markets
• Expanding customer base
• Easy to manage
• Big Profits
• Low Operating Costs
• Easy brand-new market entrance

Cons:

• Threat to the market position
• Elimination of brand Uniqueness
• Elimination of the great store experience.
• Danger of decrease in elite sales.

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

Another alternative that the company might consider, is to expand towards the global markets without closing its domestic shops that contributes to the huge part of incomes of the business. The advantages and disadvantages associated with Alternative 3 are provided listed below;

Pros:

• Lowering competitors risk
• Access to the world markets
• Increasing the size of consumer base
• Large Revenues
• Expedition of new global markets.
• Increase in earnings from worldwide markets.
• Earnings diversification.
• Step towards being a strong international brand name.

Cons:

• Extension of issues related to variety.
• Distinctions in cultures might caused a failure of the brand specifically in Asian countries.
• Low incomes at initial levels.
• Boost in marketing expenses to gain market share.



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