Recommendations of Generating Higher Value At Ibm (A) Case Analysis

Home >> Harvard Business School >> Generating Higher Value At Ibm (A) >> Recommendations

Recommendations of Generating Higher Value At Ibm (A) Case Study Analysis

RecommendationsOn the basis of above internal and external analysis of the company in addition to the assessment of various options, the business is advised to consider alternative 3. As alternative 3 would enable the business to expand in global markets with no decrease in its regional earnings and any wear and tear of its market position. By thinking about Alternative 3, the company might maintain its store experience and brand name originality. Nevertheless, it could also consider alternative 2 that could permit the company to access the marketplaces with no possible financial investment. Although, the company might pursue alternative 1 which would enable the company to concentrate on prospective international markets rather than the local markets but as the company is highly depending on the regional markets with 90% of its shops in the United States, there fore pursuing option 1 would result in the substantial decrease in business's revenue. The company is advised to consider alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of Generating Higher Value At Ibm (A) Case Help Stores

International SegmentsThe business has a long term market position in United States which can not be generated soon in the new markets. The option would help the company to expand in worldwide markets along with the elimination of concerns raised in its local markets related to its variety.

Pros:

• Exploration of new worldwide markets.
• Increase in earnings from worldwide markets.
• Elimination of problems associated with diversity.
• Revenue diversity.
• Step towards being a strong global brand.

Cons:

• Loss of extensive incomes from the regional markets.
• Boost in competition.
• Differences in cultures could resulted in a failure of the brand particularly in Asian countries.
• Low revenues at preliminary levels.
• Increase in marketing expenses to get market share.

Alternative-2: Introduction of Click and Recommendations of Generating Higher Value At Ibm (A) Case Help Stores

With the increased patterns towards online shopping, the online shops like Amazon, Alibaba and so on could pose a severe hazard to the market share of company. In this situation the company might think about introducing Click and Recommendations of Generating Higher Value At Ibm (A) Case Analysis shops. These stores with a low requirement of funds to settle would make it possible for the company to reach worldwide markets, without ending its domestic shops.

Pros:

• Low investment
• Reducing competitors risk
• Access to the world markets
• Enlarging consumer base
• Easy to handle
• Large Profits
• Low Operating Costs
• Easy new market entryway

Cons:

• Risk to the market position
• Elimination of brand name Uniqueness
• Removal of the great store experience.
• Danger of decrease in elite sales.

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

Another option that the business might think about, is to broaden towards the global markets without closing its domestic stores that adds to the major part of incomes of the business. The pros and cons associated with Alternative 3 are offered listed below;

Pros:

• Minimizing competitors hazard
• Access to the world markets
• Expanding consumer base
• Big Profits
• Exploration of new worldwide markets.
• Boost in profits from international markets.
• Income diversification.
• Action towards being a strong international brand.

Cons:

• Extension of problems connected to diversity.
• Distinctions in cultures could caused a failure of the brand particularly in Asian nations.
• Low profits at initial levels.
• Boost in marketing expenditures to get 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.