Recommendations of The Battle For Value Federal Express Corporation Vs United Parcel Service Of America Inc Case Help

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Recommendations of The Battle For Value Federal Express Corporation Vs United Parcel Service Of America Inc Case Study Help

On the basis of above internal and external analysis of the company together with the assessment of numerous options, the company is suggested to think about alternative 3. As alternative 3 would allow the business to expand in global markets without any decrease in its regional profits and any wear and tear of its market position. By considering Alternative 3, the business could maintain its store experience and brand originality. Nevertheless, it could likewise think about alternative 2 that might permit the company to access the marketplaces with no prospective investment. Although, the company could pursue alternative 1 which would allow the company to concentrate on prospective international markets instead of the regional markets but as the business is highly dependent 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 earnings. Therefore, the company is advised to consider alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of The Battle For Value Federal Express Corporation Vs United Parcel Service Of America Inc Case Help Stores

The company has a long term market position in United States which can not be created quickly in the brand-new markets. The alternative would assist the business to expand in global markets along with the elimination of issues raised in its local markets related to its variety.

Pros:

• Exploration of new worldwide markets.
• Boost in income from international markets.
• Removal of concerns associated with variety.
• Earnings diversification.
• Step towards being a strong worldwide brand.

Cons:

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

Alternative-2: Introduction of Click and Recommendations of The Battle For Value Federal Express Corporation Vs United Parcel Service Of America Inc Case Help Stores

Alternative 2 consists of the introduction of online market places through generating a proper business's website. With the increased patterns towards online shopping, the online shops like Amazon, Alibaba and so on could position a serious threat to the marketplace share of company. Furthermore, the rivals are moving towards click and Recommendations of The Battle For Value Federal Express Corporation Vs United Parcel Service Of America Inc Case Solution shops with Gap introducing Piperline. This shift towards online markets could decrease the earnings for company. In this scenario the business might consider introducing Click and Recommendations of The Battle For Value Federal Express Corporation Vs United Parcel Service Of America Inc Case Analysis shops. These shops with a low requirement of funds to settle would allow the company to reach global markets, without ending its domestic shops. The benefits and drawbacks of option 2 are given as follows;

Pros:

• Low financial investment
• Reducing competition danger
• Access to the world markets
• Expanding consumer base
• Easy to manage
• Large Revenues
• Low Operating Expense
• Easy brand-new market entrance

Cons:

• Danger to the market position
• Elimination of brand Individuality
• Elimination of the terrific store experience.
• Danger of decrease in elite sales.

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

Another choice that the business might think about, is to expand towards the global markets without closing its domestic stores that contributes to the huge part of earnings of the business. The advantages and disadvantages related to Alternative 3 are provided listed below;

Pros:

• Reducing competition risk
• Access to the world markets
• Expanding customer base
• Large Earnings
• Exploration of new international markets.
• Boost in profits from international markets.
• Income diversification.
• Action towards being a strong international brand.

Cons:

• Extension of problems connected to diversity.
• Differences in cultures could resulted in a failure of the brand specifically in Asian nations.
• Low earnings at initial levels.
• Boost in marketing expenditures to get market share.



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