Recommendations of Tempur Sealy International (A) Case Analysis

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Recommendations of Tempur Sealy International (A) Case Study Help

On the basis of above internal and external analysis of the company along with the evaluation of different alternatives, the business is suggested to consider alternative 3. As alternative 3 would permit the company to broaden in worldwide markets without any reduction in its regional revenues and any deterioration of its market position. The company might pursue alternative 1 which would allow the business to focus on prospective global markets rather than the local markets but as the company is highly dependent on the local markets with 90% of its shops in the United States, there fore pursuing alternative 1 would result in the substantial decline in company's earnings.

Aletrnative-1: Expanding International Brick and Recommendations of Tempur Sealy International (A) Case Analysis Stores

Growth towards international markets through opening brand-new shops in other Europe and Asian nations with closing domestic stores is although an excellent alternative for increasing the international existence of the business. Nevertheless, the closing of domestic shops might extremely impact the profits of the company as above 90% of its stores are located locally and closing those shops would ultimately decrease the incomes of the company. The company has a long term market position in United States which can not be created quickly in the new markets. The choice would help the company to broaden in global markets along with the removal of problems raised in its regional markets associated with its diversity. The advantages and disadvantages for Alternative 1 are listed below;

Pros:

• Exploration of brand-new international markets.
• Boost in earnings from international markets.
• Elimination of concerns related to variety.
• Revenue diversification.
• Step towards being a strong international brand name.

Cons:

• Loss of comprehensive profits from the regional markets.
• Increase in competitors.
• Distinctions in cultures might led to a failure of the brand especially in Asian nations.
• Low revenues at preliminary levels.
• Boost in marketing expenses to gain market share.

Alternative-2: Introduction of Click and Recommendations of Tempur Sealy International (A) Case Solution Stores

Alternative 2 includes the introduction of online market places through creating a correct business's site. With the increased trends towards online shopping, the online stores like Amazon, Alibaba etc. could posture an extreme hazard to the marketplace share of company. The rivals are shifting towards click and Recommendations of Tempur Sealy International (A) Case Analysis shops with Space introducing Piperline. This shift towards online markets could minimize the incomes for company. In this situation the company could think about introducing Click and Recommendations of Tempur Sealy International (A) Case Help stores. 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 stores. The pros and cons of alternative 2 are provided as follows;

Pros:

• Low investment
• Decreasing competitors danger
• Access to the world markets
• Expanding customer base
• Easy to handle
• Big Earnings
• Low Operating Costs
• Easy brand-new market entryway

Cons:

• Hazard to the market position
• Removal of brand name Uniqueness
• Removal of the great shop experience.
• Risk of decline in elite sales.

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

Another choice that the company might consider, is to expand towards the international markets without closing its domestic shops that contributes to the huge part of earnings of the business. The advantages and disadvantages connected to Alternative 3 are offered below;

Pros:

• Decreasing competitors risk
• Access to the world markets
• Increasing the size of consumer base
• Big Profits
• Expedition of new global markets.
• Increase in profits from worldwide markets.
• Earnings diversification.
• Step towards being a strong international brand name.

Cons:

• Extension of problems related to diversity.
• Differences in cultures might caused a failure of the brand specifically in Asian countries.
• Low revenues at preliminary levels.
• Boost in marketing expenses to acquire market share.



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