Recommendations of Value_merge.Xls: When And How To Use The Model Case Help

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Recommendations of Value_merge.Xls: When And How To Use The Model Case Study Solution

On the basis of above internal and external analysis of the company together with the assessment of different options, the company is suggested to think about alternative 3. As alternative 3 would permit the company to expand in global markets without any decrease in its local profits and any degeneration of its market position. By thinking about Alternative 3, the business could preserve its shop experience and brand name uniqueness. However, it could also consider alternative 2 that might enable the company to access the marketplaces with no potential financial investment. The company might pursue alternative 1 which would make it possible for the company to focus on prospective global markets rather than the regional markets but as the company is extremely dependent on the regional markets with 90% of its shops in the US, there fore pursuing alternative 1 would result in the substantial decline in company's profits. The company is suggested to consider alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of Value_merge.Xls: When And How To Use The Model Case Analysis Stores

Growth towards worldwide markets through opening new stores in other Europe and Asian nations with closing domestic stores is although a great alternative for increasing the worldwide existence of the business. However, the closing of domestic shops could highly affect the earnings of the company as above 90% of its shops lie locally and closing those shops would eventually reduce the incomes of the company. The company has a long term market position in United States which can not be created soon in the brand-new markets. The alternative would assist the company to expand in worldwide markets along with the elimination of concerns raised in its local markets connected to its variety. The benefits and drawbacks for Option 1 are listed below;

Pros:

• Exploration of new global markets.
• Boost in income from worldwide markets.
• Elimination of concerns connected to variety.
• Income diversity.
• Action towards being a strong worldwide brand.

Cons:

• Loss of extensive incomes from the regional markets.
• Increase in competitors.
• Differences in cultures might led to a failure of the brand particularly in Asian nations.
• Low revenues at initial levels.
• Boost in marketing expenses to get market share.

Alternative-2: Introduction of Click and Recommendations of Value_merge.Xls: When And How To Use The Model Case Analysis Stores

With the increased trends towards online shopping, the online shops like Amazon, Alibaba etc. might pose a serious danger to the market share of company. In this scenario the business could consider introducing Click and Recommendations of Value_merge.Xls: When And How To Use The Model Case Analysis 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 financial investment
• Decreasing competition threat
• Access to the world markets
• Increasing the size of customer base
• Easy to handle
• Big Earnings
• Low Operating Costs
• Easy new market entrance

Cons:

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

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

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

Pros:

• Lowering competitors risk
• Access to the world markets
• Increasing the size of consumer base
• Big Earnings
• Expedition of new worldwide markets.
• Boost in revenue from global markets.
• Revenue diversity.
• Step towards being a strong global brand.

Cons:

• Continuation of problems related to diversity.
• Differences in cultures could led to a failure of the brand name specifically in Asian nations.
• Low earnings at initial levels.
• Increase in marketing expenditures to get market share.



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