Recommendations of Technical Note (C) Issues Of Luxury Industry In Emerging Market Case Solution

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Recommendations of Technical Note (C) Issues Of Luxury Industry In Emerging Market Case Study Help

On the basis of above internal and external analysis of the company along with the assessment of different options, the company is advised to think about alternative 3. As alternative 3 would enable the business to broaden in global markets without any decrease in its regional profits and any wear and tear of its market position. The company could pursue alternative 1 which would make it possible for the business to focus on potential worldwide markets rather than the regional markets however as the business is extremely dependent on the local markets with 90% of its shops in the United States, there fore pursuing option 1 would result in the considerable decline in company's earnings.

Aletrnative-1: Expanding International Brick and Recommendations of Technical Note (C) Issues Of Luxury Industry In Emerging Market Case Help Stores

Expansion towards international markets through opening new shops in other Europe and Asian countries with closing domestic shops is although a great option for increasing the international presence of the company. The closing of domestic stores might extremely impact the incomes of the company as above 90% of its shops are situated domestically and closing those stores would ultimately reduce the earnings of the company. Additionally, the business has a long term market position in US which can not be created quickly in the brand-new markets. The alternative would help the business to broaden in worldwide markets along with the removal of problems raised in its regional markets connected to its variety. The advantages and disadvantages for Alternative 1 are noted below;

Pros:

• Expedition of new global markets.
• Boost in revenue from international markets.
• Elimination of concerns related to diversity.
• Revenue diversity.
• Action towards being a strong international brand.

Cons:

• Loss of substantial revenues from the regional markets.
• Boost in competitors.
• Distinctions in cultures could caused a failure of the brand name especially in Asian nations.
• Low earnings at initial levels.
• Increase in marketing expenses to gain market share.

Alternative-2: Introduction of Click and Recommendations of Technical Note (C) Issues Of Luxury Industry In Emerging Market Case Analysis Stores

Alternative 2 consists of the intro of online market places through generating a proper business's site. With the increased trends towards online shopping, the online stores like Amazon, Alibaba and so on might position a serious danger to the market share of company. The rivals are moving towards click and Recommendations of Technical Note (C) Issues Of Luxury Industry In Emerging Market Case Analysis stores with Gap presenting Piperline. This shift towards online markets could lower the revenues for company. In this scenario the business could think about presenting Click and Recommendations of Technical Note (C) Issues Of Luxury Industry In Emerging Market Case Solution stores. These shops with a low requirement of funds to settle would enable the company to reach international markets, without ending its domestic shops. The benefits and drawbacks of option 2 are given as follows;

Pros:

• Low financial investment
• Decreasing competitors threat
• Access to the world markets
• Expanding customer base
• Easy to manage
• Large Revenues
• Low Operating Costs
• Easy new market entrance

Cons:

• Hazard to the marketplace position
• Removal of brand name Uniqueness
• Removal of the fantastic shop experience.
• Danger of decline in elite sales.

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

Another option that the company could think about, is to expand towards the worldwide markets without closing its domestic shops that contributes to the major part of revenues of the company. The pros and cons associated with Alternative 3 are offered listed below;

Pros:

• Reducing competition danger
• Access to the world markets
• Enlarging customer base
• Big Incomes
• Expedition of brand-new worldwide markets.
• Increase in earnings from worldwide markets.
• Revenue diversity.
• Action towards being a strong worldwide brand name.

Cons:

• Continuation of concerns associated with diversity.
• Differences in cultures could caused a failure of the brand specifically in Asian nations.
• Low revenues at initial levels.
• Increase in marketing expenditures to get market share.



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