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

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

On the basis of above internal and external analysis of the business together with the examination of various alternatives, the company is suggested to consider alternative 3. As alternative 3 would allow the business to broaden in international markets without any decrease in its local incomes and any degeneration of its market position. By considering Alternative 3, the business might maintain its shop experience and brand individuality. It might likewise think about alternative 2 that could enable the business to access the markets without any prospective investment. Although, the company might pursue alternative 1 which would enable the company to concentrate on possible worldwide markets instead of the regional markets but as the business is highly based on the regional markets with 90% of its shops in the US, there fore pursuing alternative 1 would result in the substantial decrease in business's income. Therefore, the company is recommended to consider 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 an excellent option for increasing the global presence of the company. However, the closing of domestic stores might highly impact the profits of the firm as above 90% of its shops are located domestically and closing those stores would ultimately minimize the incomes of the company. Additionally, the business has a long term market position in United States which can not be generated soon in the new markets. The choice would help the company to broaden in worldwide markets in addition to the elimination of concerns raised in its local markets connected to its variety. The advantages and disadvantages for Alternative 1 are listed below;

Pros:

• Exploration of new worldwide markets.
• Increase in profits from international markets.
• Removal of problems related to variety.
• Revenue diversity.
• Action towards being a strong worldwide brand.

Cons:

• Loss of substantial incomes from the local markets.
• Increase in competitors.
• Distinctions in cultures could resulted in a failure of the brand especially in Asian countries.
• Low profits at preliminary 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

With the increased patterns towards online shopping, the online stores like Amazon, Alibaba and so on might present a serious danger to the market share of 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 Analysis stores. These shops with a low requirement of funds to settle would allow the business to reach global markets, without ending its domestic stores.

Pros:

• Low investment
• Lowering competition threat
• Access to the world markets
• Enlarging consumer base
• Easy to handle
• Large Profits
• Low Operating Costs
• Easy brand-new market entryway

Cons:

• Danger to the market position
• Removal of brand name Individuality
• Elimination of the great 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 broaden towards the international markets without closing its domestic stores that contributes to the huge part of revenues of the business. The benefits and drawbacks connected to Alternative 3 are given below;

Pros:

• Decreasing competition threat
• Access to the world markets
• Increasing the size of customer base
• Large Earnings
• Exploration of new international markets.
• Increase in revenue from worldwide markets.
• Profits diversification.
• Action towards being a strong global brand name.

Cons:

• Extension of issues related to variety.
• Differences in cultures could caused a failure of the brand name specifically in Asian countries.
• Low earnings at preliminary levels.
• Increase in marketing expenses to acquire market share.



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