Recommendations of Escada: A Phoenix In The Rising Case Help

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Recommendations of Escada: A Phoenix In The Rising Case Study Help

RecommendationsOn the basis of above internal and external analysis of the business together with the examination of different alternatives, the company is advised to think about alternative 3. As alternative 3 would permit the business to expand in worldwide markets with no reduction in its local revenues and any deterioration of its market position. By thinking about Alternative 3, the company could preserve its store experience and brand originality. However, it could likewise think about alternative 2 that could enable the company to access the markets without any prospective investment. The company might pursue alternative 1 which would allow the company to focus on potential worldwide markets rather than the local markets but as the business is highly dependent on the regional markets with 90% of its shops in the US, there fore pursuing option 1 would result in the significant decrease in company's revenue. For that reason, the company is suggested to think about alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of Escada: A Phoenix In The Rising Case Help Stores

International SegmentsGrowth towards global markets through opening brand-new shops in other Europe and Asian nations with closing domestic stores is although a good alternative for increasing the international presence of the company. However, the closing of domestic shops might extremely affect the revenues of the firm as above 90% of its shops are located domestically and closing those shops would eventually lower the earnings of the company. Moreover, the business has a long term market position in US which can not be created quickly in the new markets. The alternative would assist the company to broaden in international markets together with the removal of problems raised in its regional markets associated with its variety. The pros and Cons for Option 1 are noted below;

Pros:

• Expedition of brand-new global markets.
• Boost in earnings from global markets.
• Elimination of issues connected to variety.
• Income diversification.
• Action towards being a strong worldwide brand.

Cons:

• Loss of extensive incomes from the local markets.
• Boost in competitors.
• Differences in cultures could led to a failure of the brand specifically in Asian countries.
• Low earnings at initial levels.
• Boost in marketing expenses to gain market share.

Alternative-2: Introduction of Click and Recommendations of Escada: A Phoenix In The Rising Case Analysis Stores

With the increased trends towards online shopping, the online stores like Amazon, Alibaba etc. might pose a severe hazard to the market share of business. In this scenario the business might think about introducing Click and Recommendations of Escada: A Phoenix In The Rising Case Solution stores. These shops with a low requirement of funds to settle would make it possible for the company to reach worldwide markets, without ending its domestic stores.

Pros:

• Low investment
• Lowering competitors hazard
• Access to the world markets
• Expanding customer base
• Easy to manage
• Large Incomes
• Low Operating Expense
• Easy new market entrance

Cons:

• Threat to the market position
• Elimination of brand name Individuality
• Elimination of the terrific store experience.
• Danger of decline in elite sales.

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

Another alternative that the business might consider, is to broaden towards the international markets without closing its domestic stores that contributes to the huge part of incomes of the business. The advantages and disadvantages connected to Alternative 3 are offered listed below;

Pros:

• Lowering competitors threat
• Access to the world markets
• Expanding consumer base
• Large Incomes
• Expedition of brand-new worldwide markets.
• Boost in earnings from worldwide markets.
• Profits diversity.
• Step towards being a strong worldwide brand name.

Cons:

• Extension of problems related to variety.
• Distinctions in cultures might resulted in a failure of the brand name particularly in Asian countries.
• Low profits at preliminary levels.
• Increase in marketing expenses to gain market share.



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