Recommendations of Guna Fibres Ltd Case Help

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Recommendations of Guna Fibres Ltd Case Study Analysis

On the basis of above internal and external analysis of the business along with the examination of various alternatives, the company is recommended to consider alternative 3. As alternative 3 would enable the company to expand in global markets without any reduction in its local incomes and any wear and tear of its market position. The business could pursue alternative 1 which would enable the business to focus on potential international markets rather than the local markets but as the business is extremely dependent on the local markets with 90% of its shops in the United States, there fore pursuing alternative 1 would result in the considerable decline in business's earnings.

Aletrnative-1: Expanding International Brick and Recommendations of Guna Fibres Ltd 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 choice would help the business to broaden in global markets along with the elimination of issues raised in its regional markets related to its variety.

Pros:

• Expedition of new worldwide markets.
• Increase in revenue from global markets.
• Elimination of issues related to variety.
• Earnings diversity.
• Step towards being a strong global brand.

Cons:

• Loss of comprehensive profits from the regional markets.
• Increase in competitors.
• Differences in cultures could caused a failure of the brand especially in Asian nations.
• Low revenues at initial levels.
• Increase in marketing expenditures to acquire market share.

Alternative-2: Introduction of Click and Recommendations of Guna Fibres Ltd Case Analysis Stores

With the increased patterns towards online shopping, the online shops like Amazon, Alibaba etc. could position a serious danger to the market share of business. In this situation the company could think about presenting Click and Recommendations of Guna Fibres Ltd Case Solution stores. These shops with a low requirement of funds to settle would make it possible for the business to reach global markets, without ending its domestic stores.

Pros:

• Low investment
• Reducing competitors threat
• Access to the world markets
• Expanding customer base
• Easy to manage
• Big Profits
• Low Operating Expense
• Easy brand-new market entryway

Cons:

• Risk to the market position
• Elimination of brand Individuality
• Removal of the terrific shop experience.
• Risk of decrease in elite sales.

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

Another alternative that the business might consider, is to expand towards the worldwide markets without closing its domestic stores that contributes to the huge part of profits of the business. The advantages and disadvantages connected to Alternative 3 are provided listed below;

Pros:

• Decreasing competitors risk
• Access to the world markets
• Enlarging customer base
• Large Incomes
• Exploration of brand-new international markets.
• Boost in profits from worldwide markets.
• Income diversification.
• Step towards being a strong global brand name.

Cons:

• Extension of issues related to diversity.
• Distinctions in cultures might resulted in a failure of the brand name particularly in Asian countries.
• Low revenues at initial levels.
• Boost in marketing expenditures to gain market share.



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