Recommendations of Fighting Financial Crises Problems And Remedies Case Analysis

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Recommendations of Fighting Financial Crises Problems And Remedies Case Study Analysis

On the basis of above internal and external analysis of the company along with the assessment of various alternatives, the company is suggested to consider alternative 3. As alternative 3 would enable the business to expand in international markets without any reduction in its regional incomes and any degeneration of its market position. By considering Alternative 3, the business could maintain its shop experience and brand name originality. However, it might also think about alternative 2 that could enable the business to access the marketplaces with no prospective financial investment. Although, the company might pursue alternative 1 which would make it possible for the company to concentrate on prospective international markets rather than the local markets but as the company is highly dependent on the local markets with 90% of its stores in the United States, there fore pursuing option 1 would result in the substantial decline in company's earnings. The company is advised to consider alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of Fighting Financial Crises Problems And Remedies Case Analysis Stores

Expansion towards international markets through opening brand-new stores in other Europe and Asian nations with closing domestic stores is although a great option for increasing the international presence of the company. However, the closing of domestic shops could extremely impact the revenues of the firm as above 90% of its shops are located locally and closing those shops would eventually reduce the revenues of the company. Additionally, the company has a long term market position in US which can not be produced soon in the new markets. The choice would help the business to broaden in global markets in addition to the removal of problems raised in its local markets related to its diversity. The advantages and disadvantages for Option 1 are noted below;

Pros:

• Exploration of new global markets.
• Boost in income from worldwide markets.
• Removal of concerns associated with variety.
• Income diversity.
• Step towards being a strong worldwide brand.

Cons:

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

Alternative-2: Introduction of Click and Recommendations of Fighting Financial Crises Problems And Remedies Case Help Stores

Alternative 2 includes the introduction of online market places through creating a correct company's site. With the increased patterns towards online shopping, the online shops like Amazon, Alibaba etc. could present an extreme hazard to the marketplace share of company. The rivals are moving towards click and Recommendations of Fighting Financial Crises Problems And Remedies Case Solution shops with Gap introducing Piperline. This shift towards online markets might reduce the profits for company. In this situation the business could think about presenting Click and Recommendations of Fighting Financial Crises Problems And Remedies Case Analysis stores. These shops with a low requirement of funds to settle would allow the company to reach worldwide markets, without ending its domestic stores. The advantages and disadvantages of alternative 2 are offered as follows;

Pros:

• Low investment
• Reducing competition danger
• Access to the world markets
• Increasing the size of consumer base
• Easy to handle
• Large Profits
• Low Operating Expense
• Easy new market entrance

Cons:

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

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

Another alternative that the company could consider, is to broaden towards the worldwide markets without closing its domestic shops that adds to the major part of earnings of the company. The pros and cons related to Alternative 3 are offered listed below;

Pros:

• Decreasing competitors hazard
• Access to the world markets
• Expanding consumer base
• Large Profits
• Expedition of brand-new global markets.
• Increase in earnings from global markets.
• Profits diversity.
• Action towards being a strong worldwide brand name.

Cons:

• Continuation of issues related to variety.
• Differences in cultures might caused a failure of the brand specifically in Asian nations.
• Low revenues at initial levels.
• Boost in marketing expenses to acquire market share.



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