Recommendations of Hidesign: From Bags To Riches Case Analysis

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Recommendations of Hidesign: From Bags To Riches Case Study Help

RecommendationsOn the basis of above internal and external analysis of the company along with the evaluation of various alternatives, the business is recommended to consider alternative 3. As alternative 3 would allow the business to broaden in international markets without any decrease in its regional revenues and any deterioration of its market position. By considering Alternative 3, the business could keep its store experience and brand originality. It could likewise consider alternative 2 that could permit the company to access the markets without any prospective financial investment. Although, the company might pursue alternative 1 which would make it possible for the company to concentrate on potential global markets rather than the regional markets however as the business is extremely depending on the local markets with 90% of its stores in the United States, there fore pursuing option 1 would lead to the significant decline in company's profits. For that reason, the company is advised to consider alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of Hidesign: From Bags To Riches Case Solution Stores

International SegmentsExpansion towards international markets through opening brand-new shops in other Europe and Asian nations with closing domestic shops is although a great alternative for increasing the global existence of the business. However, the closing of domestic stores could highly impact the revenues of the firm as above 90% of its shops lie domestically and closing those stores would eventually decrease the earnings of the company. The business has a long term market position in US which can not be created soon in the brand-new markets. The option would help the business to broaden in global markets together with the removal of issues raised in its regional markets associated with its diversity. The advantages and disadvantages for Alternative 1 are noted below;

Pros:

• Exploration of brand-new worldwide markets.
• Increase in profits from global markets.
• Elimination of problems associated with variety.
• Revenue diversification.
• Action towards being a strong international brand.

Cons:

• Loss of extensive earnings from the regional markets.
• Boost in competitors.
• Differences in cultures could resulted in a failure of the brand particularly in Asian countries.
• Low revenues at initial levels.
• Increase in marketing expenditures to acquire market share.

Alternative-2: Introduction of Click and Recommendations of Hidesign: From Bags To Riches Case Analysis Stores

With the increased trends towards online shopping, the online shops like Amazon, Alibaba and so on might pose a serious risk to the market share of company. In this circumstance the business could think about presenting Click and Recommendations of Hidesign: From Bags To Riches Case Solution stores. These shops with a low requirement of funds to settle would allow the business to reach worldwide markets, without ending its domestic stores.

Pros:

• Low financial investment
• Lowering competition threat
• Access to the world markets
• Increasing the size of customer base
• Easy to handle
• Big Revenues
• Low Operating Expense
• Easy brand-new market entryway

Cons:

• Danger to the marketplace position
• Elimination of brand name Uniqueness
• Elimination of the terrific store experience.
• Danger of decrease in elite sales.

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

Another option that the company could consider, is to broaden towards the global markets without closing its domestic stores that contributes to the huge part of earnings of the business. The benefits and drawbacks connected to Alternative 3 are given below;

Pros:

• Minimizing competition threat
• Access to the world markets
• Enlarging customer base
• Large Earnings
• Exploration of brand-new global markets.
• Increase in earnings from worldwide markets.
• Income diversification.
• Step towards being a strong worldwide brand name.

Cons:

• Extension of problems connected to diversity.
• Differences in cultures could resulted in a failure of the brand particularly in Asian nations.
• Low incomes at initial levels.
• Increase in marketing expenses to acquire market share.



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