Recommendations of Deutsche Telekom Ag From A State-Owned Monopolist To A Global Leader Case Analysis

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Recommendations of Deutsche Telekom Ag From A State-Owned Monopolist To A Global Leader Case Study Solution

On the basis of above internal and external analysis of the company in addition to the evaluation of numerous alternatives, the business is suggested to consider alternative 3. As alternative 3 would permit the company to expand in global markets without any reduction in its regional profits and any deterioration of its market position. By thinking about Alternative 3, the business could keep its shop experience and brand originality. However, it could also think about alternative 2 that could enable the business to access the marketplaces with no prospective financial investment. The business could pursue alternative 1 which would allow the business to focus on possible international markets rather than the local markets however as the business is highly dependent on the regional markets with 90% of its shops in the US, there fore pursuing alternative 1 would result in the considerable decline in company's earnings. Therefore, the business is suggested to think about alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of Deutsche Telekom Ag From A State-Owned Monopolist To A Global Leader Case Help Stores

Expansion towards worldwide markets through opening new shops in other Europe and Asian nations with closing domestic shops is although a great choice for increasing the worldwide presence of the company. The closing of domestic stores could extremely affect the earnings of the firm as above 90% of its stores are situated domestically and closing those stores would ultimately minimize the profits of the company. Moreover, the business has a long term market position in United States which can not be generated soon in the brand-new markets. The option would help the company to broaden in global markets along with the elimination of problems raised in its local markets associated with its variety. The pros and Cons for Alternative 1 are noted below;

Pros:

• Exploration of brand-new international markets.
• Increase in income from international markets.
• Elimination of concerns associated with diversity.
• Income diversity.
• Action towards being a strong global brand.

Cons:

• Loss of substantial profits from the regional markets.
• Boost in competitors.
• Differences in cultures might resulted in a failure of the brand especially in Asian nations.
• Low earnings at initial levels.
• Boost in marketing expenses to gain market share.

Alternative-2: Introduction of Click and Recommendations of Deutsche Telekom Ag From A State-Owned Monopolist To A Global Leader Case Analysis Stores

Alternative 2 consists of the introduction of online market locations through generating a proper business's website. With the increased trends towards online shopping, the online stores like Amazon, Alibaba etc. could present a severe danger to the market share of company. Additionally, the rivals are moving towards click and Recommendations of Deutsche Telekom Ag From A State-Owned Monopolist To A Global Leader Case Analysis shops with Space introducing Piperline. This shift towards online markets could lower the profits for company. In this circumstance the company could think about introducing Click and Recommendations of Deutsche Telekom Ag From A State-Owned Monopolist To A Global Leader Case Solution shops. These shops with a low requirement of funds to settle would allow the business to reach global markets, without ending its domestic stores. The advantages and disadvantages of alternative 2 are given as follows;

Pros:

• Low investment
• Lowering competitors hazard
• Access to the world markets
• Expanding customer base
• Easy to manage
• Large Revenues
• Low Operating Costs
• Easy brand-new market entryway

Cons:

• Danger to the market position
• Removal of brand name Uniqueness
• Removal of the terrific shop experience.
• Danger of decrease in elite sales.

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

Another option that the company could consider, is to broaden towards the worldwide markets without closing its domestic stores that adds to the major part of incomes of the company. The pros and cons related to Alternative 3 are given listed below;

Pros:

• Lowering competition risk
• Access to the world markets
• Enlarging customer base
• Big Earnings
• Exploration of new global markets.
• Boost in income from global markets.
• Earnings diversification.
• Step towards being a strong worldwide brand name.

Cons:

• Extension of issues associated with diversity.
• Distinctions in cultures might led to a failure of the brand specifically in Asian nations.
• Low profits at preliminary levels.
• Boost in marketing expenditures to get market share.



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