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 Solution

On the basis of above internal and external analysis of the business along with the evaluation of various options, the company is recommended to think about alternative 3. As alternative 3 would permit the business to broaden in international markets without any decrease in its regional revenues and any wear and tear of its market position. The company could pursue alternative 1 which would enable the business to focus on potential global markets rather than the regional markets however as the business is extremely dependent on the local markets with 90% of its shops in the US, there fore pursuing option 1 would result in the significant decrease in business's revenue.

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

Growth towards worldwide markets through opening brand-new stores in other Europe and Asian nations with closing domestic shops is although a great alternative for increasing the global presence of the business. Nevertheless, the closing of domestic stores could extremely impact the earnings of the firm as above 90% of its stores are located locally and closing those stores would ultimately minimize the revenues of the firm. 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 global markets together with the removal of concerns raised in its regional markets related to its diversity. The advantages and disadvantages for Option 1 are noted below;

Pros:

• Exploration of new worldwide markets.
• Boost in income from global markets.
• Removal of concerns associated with variety.
• Revenue diversification.
• Step towards being a strong international brand.

Cons:

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

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

With the increased patterns towards online shopping, the online shops like Amazon, Alibaba etc. could posture a serious danger to the market share of company. In this scenario the business could consider presenting Click and Recommendations of Technical Note (A): Overview Of The Global Luxury Industry Case Solution shops. These shops with a low requirement of funds to settle would enable the company to reach international markets, without ending its domestic shops.

Pros:

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

Cons:

• Threat to the marketplace position
• Elimination of brand Individuality
• Removal of the excellent shop experience.
• Threat of decrease in elite sales.

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

Another choice that the business might think about, is to expand towards the global markets without closing its domestic shops that adds to the major part of profits of the company. The pros and cons connected to Alternative 3 are given below;

Pros:

• Minimizing competitors risk
• Access to the world markets
• Increasing the size of consumer base
• Big Incomes
• Exploration of new worldwide markets.
• Increase in earnings from international markets.
• Revenue diversification.
• Action towards being a strong worldwide brand name.

Cons:

• Extension of problems related to diversity.
• Differences in cultures could led to a failure of the brand specifically in Asian nations.
• Low earnings at initial levels.
• Increase in marketing expenses to acquire market share.



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