Recommendations of PhåN-Tech Corporation 1996 Case Analysis
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Recommendations of PhåN-Tech Corporation 1996 Case Study Analysis
On the basis of above internal and external analysis of the business along with the assessment of different options, the company is recommended to think about alternative 3. As alternative 3 would permit the company to broaden in international markets with no reduction in its regional incomes and any deterioration of its market position. By thinking about Alternative 3, the business might keep its store experience and brand originality. It could also consider alternative 2 that could allow the company to access the markets without any prospective investment. The company could pursue alternative 1 which would enable the company to focus on prospective international markets rather than the local markets however as the business is extremely reliant on the regional markets with 90% of its shops in the United States, there fore pursuing alternative 1 would result in the significant decline in company's profits. For that reason, the company is suggested to consider alternative 3.
Aletrnative-1: Expanding International Brick and Recommendations of PhåN-Tech Corporation 1996 Case Analysis Stores
The business has a long term market position in United States which can not be generated soon in the brand-new markets. The alternative would assist the business to expand in global markets along with the removal of concerns raised in its regional markets related to its diversity.
Pros:
• Expedition of new worldwide markets.
• Increase in earnings from international markets.
• Elimination of issues associated with variety.
• Revenue diversity.
• Step towards being a strong global brand name.
Cons:
• Loss of comprehensive profits from the regional markets.
• Increase in competitors.
• Distinctions in cultures might resulted in a failure of the brand name especially in Asian countries.
• Low profits at initial levels.
• Boost in marketing expenses to acquire market share.
Alternative-2: Introduction of Click and Recommendations of PhåN-Tech Corporation 1996 Case Analysis Stores
Alternative 2 consists of the intro of online market places through producing a correct company's website. With the increased patterns towards online shopping, the online stores like Amazon, Alibaba and so on could position a severe hazard to the marketplace share of company. Additionally, the competitors are shifting towards click and Recommendations of PhåN-Tech Corporation 1996 Case Help stores with Gap introducing Piperline. This shift towards online markets could lower the revenues for company. In this circumstance the business could think about introducing Click and Recommendations of PhåN-Tech Corporation 1996 Case Analysis stores. These shops with a low requirement of funds to settle would allow the business to reach worldwide markets, without ending its domestic shops. The benefits and drawbacks of alternative 2 are given as follows;
Pros:
• Low investment
• Minimizing competition threat
• Access to the world markets
• Expanding customer base
• Easy to manage
• Large Revenues
• Low Operating Expense
• Easy new market entrance
Cons:
• Danger to the market position
• Removal of brand Individuality
• Elimination of the terrific store experience.
• Danger of decline in elite sales.
Alternative-3: Expansion towards International Markets Without closing Domestic Stores
Another option that the company could think about, is to expand towards the global markets without closing its domestic shops that adds to the huge part of incomes of the business. The benefits and drawbacks related to Alternative 3 are offered listed below;
Pros:
• Decreasing competition risk
• Access to the world markets
• Enlarging consumer base
• Big Incomes
• Expedition of new global markets.
• Increase in profits from international markets.
• Earnings diversity.
• Action towards being a strong worldwide brand name.
Cons:
• Continuation of concerns related to diversity.
• Distinctions in cultures could caused a failure of the brand name particularly in Asian countries.
• Low incomes at initial levels.
• Increase in marketing expenditures to gain market share.
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