Recommendations of Bmw: Driving Luxury To China Case Analysis

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Recommendations of Bmw: Driving Luxury To China Case Study Help

On the basis of above internal and external analysis of the business along with the examination of numerous alternatives, the business is recommended to consider alternative 3. As alternative 3 would permit the business to expand in worldwide markets without any decrease in its regional revenues and any wear and tear of its market position. The business might pursue alternative 1 which would make it possible for the business to focus on prospective worldwide markets rather than the regional markets however as the business is extremely dependent on the regional markets with 90% of its stores in the US, there fore pursuing option 1 would result in the substantial decrease in company's revenue.

Aletrnative-1: Expanding International Brick and Recommendations of Bmw: Driving Luxury To China Case Solution Stores

The business has a long term market position in US which can not be produced quickly in the brand-new markets. The choice would help the company to broaden in international markets along with the elimination of problems raised in its local markets related to its variety.

Pros:

• Expedition of brand-new international markets.
• Increase in income from global markets.
• Removal of issues associated with variety.
• Profits diversification.
• Step towards being a strong international brand name.

Cons:

• Loss of extensive revenues from the local markets.
• Boost in competitors.
• Differences in cultures could led to a failure of the brand name particularly in Asian countries.
• Low revenues at preliminary levels.
• Boost in marketing expenditures to acquire market share.

Alternative-2: Introduction of Click and Recommendations of Bmw: Driving Luxury To China Case Analysis Stores

With the increased trends towards online shopping, the online shops like Amazon, Alibaba etc. could posture a severe threat to the market share of company. In this situation the business might consider presenting Click and Recommendations of Bmw: Driving Luxury To China Case Analysis stores. These shops with a low requirement of funds to settle would enable the company to reach international markets, without ending its domestic shops.

Pros:

• Low investment
• Decreasing competitors risk
• Access to the world markets
• Enlarging consumer base
• Easy to handle
• Big Earnings
• Low Operating Expense
• Easy brand-new market entryway

Cons:

• Danger to the marketplace position
• Removal of brand name Uniqueness
• Removal of the fantastic store experience.
• Risk of decrease in elite sales.

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

Another alternative that the company might think about, is to broaden towards the global markets without closing its domestic stores that contributes to the major part of earnings of the company. The pros and cons related to Alternative 3 are given below;

Pros:

• Lowering competitors hazard
• Access to the world markets
• Increasing the size of consumer base
• Big Incomes
• Exploration of brand-new global markets.
• Boost in profits from international markets.
• Earnings diversification.
• Step towards being a strong international brand.

Cons:

• Extension of problems connected to variety.
• Distinctions in cultures could caused a failure of the brand name particularly in Asian countries.
• Low earnings at initial levels.
• Increase in marketing expenditures to gain market share.



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