Recommendations of Australia-Japan Cable: Structuring The Project Company Case Analysis

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RecommendationsOn the basis of above internal and external analysis of the company along with the evaluation of various options, the company is suggested to think about alternative 3. As alternative 3 would permit the company to broaden in global markets without any reduction in its local incomes and any degeneration of its market position. The company might pursue alternative 1 which would enable the business to focus on potential international markets rather than the regional markets however as the business is highly reliant on the local markets with 90% of its stores in the US, there fore pursuing option 1 would result in the significant decline in business's revenue.

Aletrnative-1: Expanding International Brick and Recommendations of Australia-Japan Cable: Structuring The Project Company Case Analysis Stores

International SegmentsExpansion towards worldwide markets through opening new stores in other Europe and Asian nations with closing domestic stores is although a good option for increasing the worldwide presence of the business. However, the closing of domestic shops might highly impact the earnings of the firm as above 90% of its stores lie locally and closing those shops would eventually minimize the revenues of the firm. Additionally, the company has a long term market position in United States which can not be produced quickly in the new markets. The option would assist the company to expand in international markets together with the removal of issues raised in its regional markets associated with its variety. The pros and Cons for Alternative 1 are listed below;

Pros:

• Expedition of brand-new worldwide markets.
• Increase in earnings from worldwide markets.
• Removal of concerns associated with variety.
• Earnings diversity.
• Step towards being a strong worldwide brand name.

Cons:

• Loss of comprehensive incomes from the local markets.
• Increase in competition.
• Distinctions in cultures might led to a failure of the brand particularly in Asian nations.
• Low profits at initial levels.
• Increase in marketing expenses to acquire market share.

Alternative-2: Introduction of Click and Recommendations of Australia-Japan Cable: Structuring The Project Company Case Solution Stores

With the increased trends towards online shopping, the online shops like Amazon, Alibaba and so on might present an extreme risk to the market share of business. In this situation the company might think about presenting Click and Recommendations of Australia-Japan Cable: Structuring The Project Company Case Analysis stores. These shops with a low requirement of funds to settle would enable the company to reach international markets, without ending its domestic stores.

Pros:

• Low financial investment
• Reducing competitors threat
• Access to the world markets
• Enlarging customer base
• Easy to manage
• Large Earnings
• Low Operating Expense
• Easy brand-new market entryway

Cons:

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

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

Another option that the business might think about, is to expand towards the international markets without closing its domestic shops that adds to the huge part of earnings of the company. The advantages and disadvantages related to Alternative 3 are offered listed below;

Pros:

• Decreasing competitors danger
• Access to the world markets
• Increasing the size of consumer base
• Large Profits
• Exploration of brand-new global markets.
• Boost in profits from worldwide markets.
• Earnings diversification.
• Step towards being a strong international brand name.

Cons:

• Continuation of issues associated with variety.
• Differences in cultures might resulted in a failure of the brand especially in Asian nations.
• Low profits at initial levels.
• Boost in marketing expenditures to acquire market share.



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