Recommendations of Icici Bank: Path To Globalization Case Analysis

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Recommendations of Icici Bank: Path To Globalization Case Study Help

On the basis of above internal and external analysis of the business in addition to the assessment of different alternatives, the business is recommended to consider alternative 3. As alternative 3 would enable the business to expand in international markets without any reduction in its local earnings and any wear and tear of its market position. By thinking about Alternative 3, the business could keep its shop experience and brand originality. It might likewise think about alternative 2 that might enable the company to access the markets without any prospective financial investment. Although, the business might pursue alternative 1 which would allow the business to focus on potential international markets rather than the regional markets but as the company is highly based on the regional markets with 90% of its stores in the US, there fore pursuing alternative 1 would result in the significant decrease in business's revenue. The company is suggested to consider alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of Icici Bank: Path To Globalization Case Solution Stores

Expansion towards worldwide markets through opening new shops in other Europe and Asian nations with closing domestic stores is although a great choice for increasing the global existence of the company. The closing of domestic stores might highly affect the profits of the company as above 90% of its shops are situated locally and closing those shops would eventually minimize the earnings of the firm. Additionally, the business has a long term market position in United States which can not be generated soon in the new markets. The choice would assist the business to broaden in international markets along with the removal of problems raised in its regional markets connected to its variety. The advantages and disadvantages for Option 1 are listed below;

Pros:

• Exploration of brand-new international markets.
• Increase in revenue from global markets.
• Elimination of problems connected to diversity.
• Revenue diversity.
• Action towards being a strong international brand.

Cons:

• Loss of extensive earnings from the regional markets.
• Boost in competitors.
• Differences in cultures could led to a failure of the brand specifically in Asian nations.
• Low earnings at preliminary levels.
• Increase in marketing expenditures to get market share.

Alternative-2: Introduction of Click and Recommendations of Icici Bank: Path To Globalization Case Help Stores

Alternative 2 consists of the introduction of online market places through producing an appropriate business's site. With the increased patterns towards online shopping, the online stores like Amazon, Alibaba and so on might position a severe risk to the market share of company. Furthermore, the rivals are moving towards click and Recommendations of Icici Bank: Path To Globalization Case Analysis shops with Gap presenting Piperline. This shift towards online markets could reduce the profits for company. In this scenario the business might think about presenting Click and Recommendations of Icici Bank: Path To Globalization Case Analysis shops. These stores with a low requirement of funds to settle would enable the company to reach international markets, without ending its domestic stores. The advantages and disadvantages of option 2 are given as follows;

Pros:

• Low investment
• Reducing competitors risk
• Access to the world markets
• Enlarging customer base
• Easy to manage
• Big Revenues
• Low Operating Costs
• Easy new market entrance

Cons:

• Threat to the marketplace position
• Removal of brand name Individuality
• Removal of the fantastic shop experience.
• Danger of decrease in elite sales.

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

Another alternative that the company might consider, is to expand towards the worldwide markets without closing its domestic stores that adds to the huge part of earnings of the business. The pros and cons associated with Alternative 3 are provided below;

Pros:

• Minimizing competitors danger
• Access to the world markets
• Increasing the size of consumer base
• Large Earnings
• Exploration of brand-new global markets.
• Boost in profits from international markets.
• Income diversity.
• Step towards being a strong international brand.

Cons:

• Extension of issues connected to variety.
• Distinctions in cultures might led to a failure of the brand particularly in Asian countries.
• Low earnings at initial levels.
• Increase in marketing expenditures to get market share.



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