Recommendations of Oldtown Berhad Case Analysis

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Recommendations of Oldtown Berhad Case Study Solution

On the basis of above internal and external analysis of the business in addition to the examination of numerous options, the business is recommended to think about alternative 3. As alternative 3 would allow the business to expand in international markets without any decrease in its local incomes and any wear and tear of its market position. By considering Alternative 3, the business might keep its shop experience and brand uniqueness. It might also think about alternative 2 that might permit the business to access the markets without any prospective investment. The business might pursue alternative 1 which would allow the company to focus on possible global markets rather than the regional markets however as the business is extremely reliant on the local markets with 90% of its shops in the US, there fore pursuing option 1 would result in the significant decline in business's earnings. The company is suggested to consider alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of Oldtown Berhad Case Solution Stores

Expansion towards international markets through opening brand-new stores in other Europe and Asian countries with closing domestic shops is although a good choice for increasing the worldwide existence of the company. Nevertheless, the closing of domestic stores could extremely affect the revenues of the company as above 90% of its shops are located domestically and closing those stores would ultimately reduce the revenues of the firm. The company has a long term market position in United States which can not be created quickly in the new markets. The option would help the company to expand in international markets in addition to the removal of issues raised in its local markets connected to its diversity. The advantages and disadvantages for Alternative 1 are listed below;

Pros:

• Exploration of brand-new global markets.
• Boost in revenue from international markets.
• Elimination of issues connected to diversity.
• Earnings diversification.
• Action towards being a strong global brand.

Cons:

• Loss of extensive revenues from the local markets.
• Boost in competitors.
• Distinctions in cultures could resulted in a failure of the brand name especially in Asian countries.
• Low earnings at preliminary levels.
• Boost in marketing expenses to acquire market share.

Alternative-2: Introduction of Click and Recommendations of Oldtown Berhad Case Solution Stores

Alternative 2 includes the intro of online market locations through generating a correct business's website. With the increased patterns towards online shopping, the online shops like Amazon, Alibaba and so on could pose a serious hazard to the market share of business. The competitors are moving towards click and Recommendations of Oldtown Berhad Case Analysis stores with Space introducing Piperline. This shift towards online markets could minimize the profits for company. In this situation the company might think about introducing Click and Recommendations of Oldtown Berhad Case Analysis stores. These stores with a low requirement of funds to settle would enable the business to reach international markets, without ending its domestic shops. The benefits and drawbacks of alternative 2 are given as follows;

Pros:

• Low financial investment
• Lowering competition danger
• Access to the world markets
• Expanding customer base
• Easy to manage
• Large Incomes
• Low Operating Expense
• Easy new market entryway

Cons:

• Threat to the market position
• Removal of brand Individuality
• Elimination of the great shop experience.
• Threat of decrease in elite sales.

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

Another choice that the company could think about, is to broaden towards the global markets without closing its domestic stores that adds to the huge part of earnings of the company. The pros and cons connected to Alternative 3 are given listed below;

Pros:

• Lowering competition danger
• Access to the world markets
• Enlarging consumer base
• Large Incomes
• Expedition of new international markets.
• Boost in revenue from international markets.
• Profits diversity.
• Step towards being a strong international brand name.

Cons:

• Extension of problems related to variety.
• Differences in cultures could led to a failure of the brand name specifically in Asian nations.
• Low revenues at preliminary levels.
• Increase in marketing expenditures to gain market share.



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