Recommendations of Decision Making At The Top: The All-Star Sports E-Business Division Case Analysis
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Recommendations of Decision Making At The Top: The All-Star Sports E-Business Division Case Study Analysis
On the basis of above internal and external analysis of the company together with the evaluation of different alternatives, the company is suggested to consider alternative 3. As alternative 3 would enable the company to expand in global markets with no decrease in its regional revenues and any deterioration of its market position. By considering Alternative 3, the business might preserve its store experience and brand originality. Nevertheless, it could also consider alternative 2 that might permit the business to access the markets without any potential investment. The company could pursue alternative 1 which would make it possible for the company to focus on possible international markets rather than the regional markets but as the company is highly dependent on the regional markets with 90% of its stores in the United States, there fore pursuing option 1 would result in the substantial decrease in company's revenue. Therefore, the company is recommended to think about alternative 3.
Aletrnative-1: Expanding International Brick and Recommendations of Decision Making At The Top: The All-Star Sports E-Business Division Case Analysis Stores
Expansion towards international markets through opening new shops in other Europe and Asian nations with closing domestic stores is although an excellent choice for increasing the global presence of the company. Nevertheless, the closing of domestic stores could extremely affect the revenues of the firm as above 90% of its stores are located domestically and closing those stores would eventually minimize the revenues of the company. Furthermore, the business has a long term market position in United States which can not be generated quickly in the new markets. The option would assist the company to expand in global markets in addition to the removal of concerns raised in its regional markets related to its variety. The pros and Cons for Alternative 1 are listed below;
Pros:
• Exploration of brand-new global markets.
• Boost in earnings from international markets.
• Removal of issues associated with variety.
• Income diversity.
• Step towards being a strong worldwide brand.
Cons:
• Loss of substantial incomes from the local markets.
• Increase in competition.
• Distinctions in cultures could led to a failure of the brand name especially in Asian countries.
• Low earnings at initial levels.
• Increase in marketing expenditures to gain market share.
Alternative-2: Introduction of Click and Recommendations of Decision Making At The Top: The All-Star Sports E-Business Division Case Solution Stores
With the increased trends towards online shopping, the online shops like Amazon, Alibaba and so on might pose a severe danger to the market share of business. In this circumstance the business might think about introducing Click and Recommendations of Decision Making At The Top: The All-Star Sports E-Business Division Case Help shops. These shops with a low requirement of funds to settle would allow the business to reach worldwide markets, without ending its domestic shops.
Pros:
• Low financial investment
• Minimizing competitors risk
• Access to the world markets
• Enlarging consumer base
• Easy to manage
• Large Incomes
• Low Operating Costs
• Easy brand-new market entrance
Cons:
• Danger to the marketplace position
• Elimination of brand Individuality
• Removal of the great store experience.
• Risk of decrease in elite sales.
Alternative-3: Expansion towards International Markets Without closing Domestic Stores
Another option that the company might consider, is to broaden towards the worldwide markets without closing its domestic shops that contributes to the huge part of earnings of the business. The advantages and disadvantages associated with Alternative 3 are offered below;
Pros:
• Decreasing competitors threat
• Access to the world markets
• Enlarging customer base
• Large Incomes
• Exploration of brand-new international markets.
• Boost in revenue from worldwide markets.
• Earnings diversity.
• Step towards being a strong international brand.
Cons:
• Extension of concerns associated with diversity.
• Differences in cultures might caused a failure of the brand name specifically in Asian nations.
• Low revenues at preliminary levels.
• Boost in marketing expenditures to acquire market share.
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