Recommendations of Gucci: Positive Luxury Case Help

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Recommendations of Gucci: Positive Luxury Case Study Solution

On the basis of above internal and external analysis of the business along with the evaluation of numerous alternatives, the company is recommended to consider alternative 3. As alternative 3 would permit the business to broaden in global markets without any reduction in its local incomes and any deterioration of its market position. The company might pursue alternative 1 which would enable the company to focus on potential worldwide markets rather than the regional markets however as the business is highly reliant on the regional markets with 90% of its shops in the US, there fore pursuing option 1 would result in the considerable decline in company's income.

Aletrnative-1: Expanding International Brick and Recommendations of Gucci: Positive Luxury Case Help Stores

Growth towards global markets through opening new stores in other Europe and Asian nations with closing domestic stores is although a great option for increasing the global presence of the company. However, the closing of domestic shops could extremely affect the earnings of the firm as above 90% of its stores lie domestically and closing those shops would eventually reduce the earnings of the company. The company has a long term market position in United States which can not be produced soon in the brand-new markets. The choice would help the company to expand in global markets in addition to the removal of issues raised in its local markets associated with its variety. The pros and Cons for Option 1 are noted below;

Pros:

• Expedition of new international markets.
• Increase in income from global markets.
• Elimination of problems associated with diversity.
• Income diversity.
• Action towards being a strong global brand name.

Cons:

• Loss of extensive profits from the regional markets.
• Boost in competition.
• Distinctions in cultures could led to a failure of the brand name especially in Asian nations.
• Low revenues at preliminary levels.
• Boost in marketing expenses to acquire market share.

Alternative-2: Introduction of Click and Recommendations of Gucci: Positive Luxury Case Analysis Stores

With the increased patterns towards online shopping, the online shops like Amazon, Alibaba and so on could present a severe threat to the market share of company. In this circumstance the company might think about presenting Click and Recommendations of Gucci: Positive Luxury Case Analysis stores. These shops with a low requirement of funds to settle would make it possible for the business to reach international markets, without ending its domestic stores.

Pros:

• Low investment
• Reducing competition hazard
• Access to the world markets
• Increasing the size of customer base
• Easy to manage
• Large Profits
• Low Operating Expense
• Easy new market entrance

Cons:

• Hazard to the market position
• Elimination of brand name Uniqueness
• Removal of the excellent store experience.
• Threat of decline in elite sales.

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

Another choice that the business could think about, is to expand towards the global markets without closing its domestic shops that contributes to the huge part of incomes of the business. The advantages and disadvantages related to Alternative 3 are offered listed below;

Pros:

• Minimizing competitors danger
• Access to the world markets
• Expanding customer base
• Big Earnings
• Exploration of brand-new worldwide markets.
• Boost in profits from global markets.
• Revenue diversity.
• Action towards being a strong international brand.

Cons:

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



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