Recommendations of Technical Note (A) Overview Of The Global Luxury Industry Case Solution

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Recommendations of Technical Note (A) Overview Of The Global Luxury Industry Case Study Analysis

On the basis of above internal and external analysis of the company along 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 international markets without any reduction in its local earnings and any deterioration of its market position. The company might pursue alternative 1 which would allow the business to focus on prospective worldwide markets rather than the local markets however as the business is extremely dependent on the regional markets with 90% of its stores in the US, there fore pursuing option 1 would result in the considerable decrease in business's earnings.

Aletrnative-1: Expanding International Brick and Recommendations of Technical Note (A) Overview Of The Global Luxury Industry Case Solution Stores

The company has a long term market position in United States which can not be generated soon in the new markets. The choice would help the company to broaden in worldwide markets along with the elimination of problems raised in its local markets related to its diversity.

Pros:

• Expedition of brand-new global markets.
• Boost in earnings from international markets.
• Removal of issues connected to variety.
• Revenue diversification.
• Step towards being a strong global brand.

Cons:

• Loss of substantial revenues from the local markets.
• Boost in competitors.
• Distinctions in cultures could caused a failure of the brand name specifically in Asian nations.
• Low incomes at preliminary levels.
• Boost in marketing expenditures to acquire market share.

Alternative-2: Introduction of Click and Recommendations of Technical Note (A) Overview Of The Global Luxury Industry Case Solution Stores

With the increased patterns towards online shopping, the online stores like Amazon, Alibaba and so on might pose an extreme risk to the market share of business. In this scenario the company might think about presenting Click and Recommendations of Technical Note (A) Overview Of The Global Luxury Industry Case Solution stores. These stores with a low requirement of funds to settle would enable the company to reach worldwide markets, without ending its domestic shops.

Pros:

• Low investment
• Reducing competition threat
• Access to the world markets
• Expanding consumer base
• Easy to manage
• Big Incomes
• Low Operating Costs
• Easy brand-new market entrance

Cons:

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

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

Another option that the business could think about, is to broaden towards the international markets without closing its domestic stores that contributes to the huge part of revenues of the company. The pros and cons related to Alternative 3 are given listed below;

Pros:

• Reducing competitors hazard
• Access to the world markets
• Enlarging consumer base
• Big Earnings
• Expedition of new international markets.
• Increase in earnings from international markets.
• Income diversity.
• Action towards being a strong international brand name.

Cons:

• Extension of issues associated with diversity.
• Distinctions in cultures might led to a failure of the brand name specifically in Asian countries.
• Low incomes at preliminary levels.
• Boost in marketing expenses to get market share.



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