Recommendations of Tempur Sealy International (B) Case Solution

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Recommendations of Tempur Sealy International (B) Case Study Solution

On the basis of above internal and external analysis of the business along with the evaluation of various options, the business is advised to think about alternative 3. As alternative 3 would enable the business to expand in international markets without any decrease in its regional earnings and any deterioration of its market position. The business might pursue alternative 1 which would enable the company to focus on possible global markets rather than the regional markets but as the company is highly reliant on the regional markets with 90% of its shops in the United States, there fore pursuing option 1 would result in the substantial decline in business's earnings.

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

Growth towards international markets through opening new stores in other Europe and Asian nations with closing domestic shops is although a great alternative for increasing the global existence of the company. Nevertheless, the closing of domestic shops might extremely affect the revenues of the company as above 90% of its shops are located locally and closing those shops would ultimately decrease the incomes of the company. Furthermore, the company has a long term market position in United States which can not be created quickly in the brand-new markets. The option would assist the company to broaden in worldwide markets along with the elimination of problems raised in its local markets related to its diversity. The advantages and disadvantages for Alternative 1 are noted below;

Pros:

• Expedition of brand-new global markets.
• Boost in revenue from international markets.
• Elimination of concerns connected to variety.
• Income diversity.
• Action towards being a strong worldwide brand name.

Cons:

• Loss of comprehensive earnings from the regional markets.
• Increase in competition.
• Differences in cultures might resulted in a failure of the brand name specifically in Asian nations.
• Low incomes at preliminary levels.
• Boost in marketing expenses to get market share.

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

With the increased patterns towards online shopping, the online stores like Amazon, Alibaba etc. could pose a serious risk to the market share of company. In this scenario the company could consider presenting Click and Recommendations of Tempur Sealy International (B) Case Solution stores. These shops with a low requirement of funds to settle would make it possible for the business to reach global markets, without ending its domestic stores.

Pros:

• Low financial investment
• Reducing competitors risk
• Access to the world markets
• Increasing the size of consumer base
• Easy to handle
• Big Earnings
• Low Operating Expense
• Easy new market entrance

Cons:

• Threat to the marketplace position
• Elimination of brand Originality
• 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 business might consider, is to broaden towards the international markets without closing its domestic shops that adds to the major part of earnings of the business. The advantages and disadvantages associated with Alternative 3 are provided listed below;

Pros:

• Decreasing competition hazard
• Access to the world markets
• Expanding consumer base
• Big Earnings
• Exploration of brand-new global markets.
• Increase in profits from worldwide markets.
• Profits diversification.
• Action towards being a strong global brand name.

Cons:

• Extension of concerns associated with diversity.
• Distinctions in cultures could led to a failure of the brand particularly in Asian countries.
• Low earnings at preliminary levels.
• Increase in marketing expenses to gain market share.



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