Recommendations of Escada - Made Of Steel Case Help

Home >> Essec Business School >> Escada - Made Of Steel >> Recommendations

Recommendations of Escada - Made Of Steel Case Study Help

On the basis of above internal and external analysis of the business along with the examination of numerous options, the company is suggested to consider alternative 3. As alternative 3 would allow the business to expand in global markets without any reduction in its local incomes and any degeneration of its market position. The business could pursue alternative 1 which would make it possible for the company to focus on prospective global markets rather than the local markets however as the company is highly reliant on the local markets with 90% of its stores in the US, there fore pursuing alternative 1 would result in the significant decrease in business's revenue.

Aletrnative-1: Expanding International Brick and Recommendations of Escada - Made Of Steel Case Analysis Stores

Expansion towards global markets through opening brand-new stores in other Europe and Asian nations with closing domestic stores is although an excellent choice for increasing the international existence of the company. However, the closing of domestic stores could highly affect the earnings of the firm as above 90% of its shops are located locally and closing those stores would ultimately decrease the profits of the firm. The company has a long term market position in US which can not be generated soon in the brand-new markets. The alternative would help the company to expand in worldwide markets along with the elimination of concerns raised in its regional markets connected to its diversity. The benefits and drawbacks for Option 1 are noted below;

Pros:

• Exploration of new international markets.
• Boost in revenue from worldwide markets.
• Elimination of concerns associated with diversity.
• Revenue diversification.
• Step towards being a strong worldwide brand name.

Cons:

• Loss of substantial profits from the regional markets.
• Increase in competition.
• Distinctions in cultures could resulted in a failure of the brand especially in Asian nations.
• Low profits at preliminary levels.
• Increase in marketing expenses to gain market share.

Alternative-2: Introduction of Click and Recommendations of Escada - Made Of Steel Case Analysis Stores

With the increased patterns towards online shopping, the online shops like Amazon, Alibaba and so on could pose a severe threat to the market share of business. In this circumstance the business might consider introducing Click and Recommendations of Escada - Made Of Steel 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 shops.

Pros:

• Low investment
• Minimizing competitors danger
• Access to the world markets
• Increasing the size of consumer base
• Easy to manage
• Big Incomes
• Low Operating Expense
• Easy new market entrance

Cons:

• Danger to the marketplace position
• Elimination of brand name Originality
• Elimination of the great shop experience.
• Risk of decrease in elite sales.

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

Another option that the company could consider, is to expand towards the global markets without closing its domestic stores that adds to the major part of profits of the business. The advantages and disadvantages connected to Alternative 3 are offered below;

Pros:

• Minimizing competition threat
• Access to the world markets
• Increasing the size of consumer base
• Big Revenues
• Expedition of brand-new global markets.
• Boost in profits from worldwide markets.
• Income diversity.
• Action towards being a strong international brand name.

Cons:

• Continuation of issues connected to diversity.
• Differences in cultures might led to a failure of the brand name especially in Asian nations.
• Low revenues at initial levels.
• Increase in marketing expenditures to get market share.



This is sample work and not applicable to real case study. Please place the order on the website to get your own originally done case solution.