Recommendations of Front Row Tribe: The Sharing Economy Meets The Luxury Industry Case Solution

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Recommendations of Front Row Tribe: The Sharing Economy Meets The Luxury Industry Case Study Analysis

RecommendationsOn the basis of above internal and external analysis of the business in addition to the examination of different alternatives, the company is advised to consider alternative 3. As alternative 3 would allow the business to expand in international markets without any reduction in its regional profits and any degeneration of its market position. By considering Alternative 3, the business might maintain its store experience and brand individuality. It might likewise consider alternative 2 that might enable the business to access the markets without any prospective financial investment. Although, the business could pursue alternative 1 which would make it possible for the company to concentrate on potential global markets rather than the local markets however as the company is extremely based on the regional markets with 90% of its shops in the US, there fore pursuing alternative 1 would lead to the considerable decline in company's earnings. The company is advised to think about alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of Front Row Tribe: The Sharing Economy Meets The Luxury Industry Case Analysis Stores

International SegmentsThe business has a long term market position in US which can not be created soon in the new markets. The option would help the business to expand in global markets along with the removal of problems raised in its regional markets related to its diversity.

Pros:

• Expedition of new worldwide markets.
• Increase in income from global markets.
• Elimination of problems related to diversity.
• Earnings diversification.
• Action towards being a strong global brand name.

Cons:

• Loss of comprehensive incomes from the local markets.
• Boost in competition.
• Distinctions in cultures could led to a failure of the brand specifically in Asian nations.
• Low earnings at preliminary levels.
• Boost in marketing expenses to acquire market share.

Alternative-2: Introduction of Click and Recommendations of Front Row Tribe: The Sharing Economy Meets The Luxury Industry Case Solution Stores

With the increased trends towards online shopping, the online stores like Amazon, Alibaba etc. could posture a severe hazard to the market share of business. In this scenario the business could consider introducing Click and Recommendations of Front Row Tribe: The Sharing Economy Meets The Luxury Industry Case Analysis stores. These stores with a low requirement of funds to settle would enable the business to reach global markets, without ending its domestic stores.

Pros:

• Low financial investment
• Minimizing competition threat
• Access to the world markets
• Expanding customer base
• Easy to handle
• Large Earnings
• Low Operating Expense
• Easy new market entryway

Cons:

• Hazard to the marketplace position
• Elimination of brand Uniqueness
• Removal of the great shop experience.
• Threat of decrease in elite sales.

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

Another choice that the business could consider, is to broaden towards the worldwide markets without closing its domestic stores that adds to the huge part of incomes of the company. The benefits and drawbacks connected to Alternative 3 are given listed below;

Pros:

• Reducing competition threat
• Access to the world markets
• Expanding consumer base
• Large Earnings
• Expedition of new international markets.
• Boost in profits from global markets.
• Profits diversity.
• Action towards being a strong worldwide brand.

Cons:

• Extension of problems associated with variety.
• Differences in cultures might caused a failure of the brand name especially in Asian nations.
• Low profits at preliminary levels.
• Boost in marketing expenses to get market share.



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