Recommendations of Kota Fibres Ltd Case Analysis

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Recommendations of Kota Fibres Ltd Case Study Analysis

On the basis of above internal and external analysis of the company along with the examination of different alternatives, the business is suggested to think about alternative 3. As alternative 3 would allow the business to expand in worldwide markets without any reduction in its local earnings and any deterioration of its market position. The business could pursue alternative 1 which would make it possible for the business to focus on possible worldwide markets rather than the local markets but as the company is highly reliant on the local markets with 90% of its shops in the US, there fore pursuing alternative 1 would result in the considerable decrease in company's earnings.

Aletrnative-1: Expanding International Brick and Recommendations of Kota Fibres Ltd Case Solution Stores

The business has a long term market position in US which can not be created soon in the brand-new markets. The choice would assist the business to expand in global markets along with the removal of problems raised in its regional markets related to its diversity.

Pros:

• Exploration of new international markets.
• Increase in income from international markets.
• Elimination of issues associated with variety.
• Profits diversity.
• Action towards being a strong worldwide brand name.

Cons:

• Loss of comprehensive earnings from the local markets.
• Boost in competitors.
• Differences in cultures could led to a failure of the brand name particularly in Asian countries.
• Low profits at initial levels.
• Increase in marketing expenditures to gain market share.

Alternative-2: Introduction of Click and Recommendations of Kota Fibres Ltd Case Help Stores

Alternative 2 includes the intro of online market locations through creating a proper business's site. With the increased trends towards online shopping, the online shops like Amazon, Alibaba and so on could position an extreme danger to the market share of business. Furthermore, the rivals are moving towards click and Recommendations of Kota Fibres Ltd Case Solution stores with Space presenting Piperline. This shift towards online markets might minimize the revenues for business. In this situation the company could think about introducing Click and Recommendations of Kota Fibres Ltd Case Solution stores. These shops with a low requirement of funds to settle would enable the company to reach international markets, without ending its domestic stores. The advantages and disadvantages of option 2 are offered as follows;

Pros:

• Low financial investment
• Lowering competitors hazard
• Access to the world markets
• Increasing the size of customer base
• Easy to handle
• Large Incomes
• Low Operating Costs
• Easy new market entryway

Cons:

• Threat to the market position
• Elimination of brand name Individuality
• Removal of the fantastic shop experience.
• Danger of decline in elite sales.

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

Another option that the company might consider, is to expand towards the international markets without closing its domestic stores that adds to the major part of profits of the company. The benefits and drawbacks connected to Alternative 3 are provided listed below;

Pros:

• Lowering competition threat
• Access to the world markets
• Enlarging customer base
• Large Earnings
• Expedition of new global markets.
• Increase in profits from international markets.
• Income diversity.
• Step towards being a strong worldwide brand name.

Cons:

• Continuation of problems connected to diversity.
• Differences in cultures could led to a failure of the brand especially in Asian countries.
• Low revenues at preliminary levels.
• Boost in marketing expenditures to get market share.



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