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

Home >> Essec Business School >> Technical Note (C): Issues Of Luxury Industry In Emerging Market >> Recommendations

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

RecommendationsOn the basis of above internal and external analysis of the business along with the assessment of numerous alternatives, the company is suggested to consider alternative 3. As alternative 3 would enable the business to broaden in global markets without any decrease in its local profits and any degeneration of its market position. The business might pursue alternative 1 which would allow the business to focus on potential worldwide markets rather than the regional markets but as the company is highly reliant on the local markets with 90% of its shops in the United States, there fore pursuing alternative 1 would result in the significant decline in business's income.

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

International SegmentsThe company has a long term market position in US which can not be generated soon in the new markets. The choice would help the business to broaden in international markets along with the removal of issues raised in its regional markets related to its diversity.

Pros:

• Expedition of new worldwide markets.
• Boost in earnings from international markets.
• Removal of issues related to variety.
• Income diversity.
• Step towards being a strong worldwide brand.

Cons:

• Loss of extensive incomes from the regional markets.
• Boost in competition.
• Distinctions in cultures could resulted in a failure of the brand specifically in Asian nations.
• Low revenues at preliminary levels.
• Increase in marketing expenditures to acquire market share.

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

With the increased patterns towards online shopping, the online stores like Amazon, Alibaba etc. might position a serious hazard to the market share of business. In this situation the company could consider presenting Click and Recommendations of Technical Note (C): Issues Of Luxury Industry In Emerging Market Case Analysis shops. These shops with a low requirement of funds to settle would allow the business to reach global markets, without ending its domestic shops.

Pros:

• Low investment
• Minimizing competitors risk
• Access to the world markets
• Increasing the size of customer base
• Easy to handle
• Big Revenues
• Low Operating Costs
• Easy new market entryway

Cons:

• Risk to the market position
• Removal of brand Originality
• Removal of the excellent shop experience.
• Risk of decline in elite sales.

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

Another alternative that the business could consider, is to broaden towards the worldwide markets without closing its domestic stores that contributes to the huge part of incomes of the company. The pros and cons related to Alternative 3 are offered listed below;

Pros:

• Lowering competition risk
• Access to the world markets
• Enlarging customer base
• Large Earnings
• Exploration of new global markets.
• Boost in income from international markets.
• Revenue diversification.
• Step towards being a strong international brand name.

Cons:

• Continuation of concerns related to diversity.
• Distinctions in cultures could resulted in a failure of the brand specifically in Asian nations.
• Low earnings at initial levels.
• Boost in marketing expenses to acquire market share.



This is sample work and not applicable to real case study. Please place the order on the website to get your own originally done case solution.