Recommendations of Hybritech Incorporated (A) Case Help

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Recommendations of Hybritech Incorporated (A) Case Study Solution

RecommendationsOn the basis of above internal and external analysis of the company in addition to the examination of different options, the business is suggested to consider alternative 3. As alternative 3 would allow the business to expand in worldwide markets with no decrease in its regional revenues and any wear and tear of its market position. By thinking about Alternative 3, the business could keep its store experience and brand name originality. Nevertheless, it could likewise consider alternative 2 that could allow the business to access the markets without any prospective financial investment. The company might pursue alternative 1 which would allow the company to focus on possible international markets rather than the local markets but as the company is highly reliant on the local markets with 90% of its stores in the US, there fore pursuing alternative 1 would result in the significant decline in company's earnings. The business is advised to think about alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of Hybritech Incorporated (A) Case Analysis Stores

International SegmentsGrowth towards worldwide markets through opening brand-new stores in other Europe and Asian countries with closing domestic stores is although a good option for increasing the international existence of the company. However, the closing of domestic shops might highly affect the incomes of the company as above 90% of its stores are located locally and closing those stores would ultimately decrease the earnings of the company. Furthermore, the business has a long term market position in US which can not be created soon in the new markets. The alternative would assist the company to expand in global markets along with the elimination of problems raised in its local markets associated with its variety. The benefits and drawbacks for Alternative 1 are listed below;

Pros:

• Expedition of new international markets.
• Boost in earnings from global markets.
• Elimination of issues related to diversity.
• Profits diversification.
• Action towards being a strong global brand name.

Cons:

• Loss of extensive profits from the local markets.
• Increase in competitors.
• Differences in cultures could resulted in a failure of the brand especially in Asian nations.
• Low earnings at initial levels.
• Increase in marketing expenses to acquire market share.

Alternative-2: Introduction of Click and Recommendations of Hybritech Incorporated (A) Case Analysis Stores

Alternative 2 includes the intro of online market places through generating a correct company's site. With the increased patterns towards online shopping, the online stores like Amazon, Alibaba and so on could position a serious threat to the marketplace share of business. The rivals are moving towards click and Recommendations of Hybritech Incorporated (A) Case Help stores with Gap introducing Piperline. This shift towards online markets might reduce the revenues for company. In this scenario the business might consider introducing Click and Recommendations of Hybritech Incorporated (A) Case Help shops. These shops 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 pros and cons of option 2 are offered as follows;

Pros:

• Low financial investment
• Reducing competition risk
• Access to the world markets
• Enlarging consumer base
• Easy to handle
• Large Revenues
• Low Operating Expense
• Easy brand-new market entrance

Cons:

• Threat to the marketplace position
• Elimination of brand name Individuality
• Removal of the great shop experience.
• Threat of decline in elite sales.

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

Another choice that the company could think about, is to broaden towards the international markets without closing its domestic stores that contributes to the major part of earnings of the company. The advantages and disadvantages connected to Alternative 3 are offered below;

Pros:

• Reducing competitors hazard
• Access to the world markets
• Enlarging customer base
• Large Profits
• Expedition of new global markets.
• Increase in revenue from worldwide markets.
• Revenue diversification.
• Action towards being a strong international brand.

Cons:

• Extension of concerns associated with variety.
• Distinctions in cultures could led to a failure of the brand especially in Asian countries.
• Low incomes at initial levels.
• Increase in marketing expenses to gain market share.



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