Recommendations of Tempur Sealy International (C) Case Analysis

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Recommendations of Tempur Sealy International (C) Case Study Help

On the basis of above internal and external analysis of the company together with the examination of various options, the company is recommended to think about alternative 3. As alternative 3 would enable the company to broaden in worldwide markets with no decrease in its regional profits and any deterioration of its market position. By considering Alternative 3, the company could maintain its store experience and brand name originality. Nevertheless, it could likewise consider alternative 2 that might permit the company to access the marketplaces without any potential investment. Although, the business might pursue alternative 1 which would allow the business to focus on prospective worldwide markets instead of the regional markets but as the company is highly dependent on the regional markets with 90% of its stores in the US, there fore pursuing option 1 would lead to the substantial decline in company's earnings. For that reason, the company is recommended to think about alternative 3.

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

Expansion towards global markets through opening new stores in other Europe and Asian countries with closing domestic stores is although an excellent choice for increasing the global presence of the business. Nevertheless, the closing of domestic shops might extremely impact the profits of the company as above 90% of its stores lie domestically and closing those shops would eventually lower the incomes of the firm. The business has a long term market position in United States which can not be produced soon in the brand-new markets. The alternative would assist the company to expand in worldwide markets together with the removal of issues raised in its local markets connected to its variety. The benefits and drawbacks for Alternative 1 are noted below;

Pros:

• Expedition of new worldwide markets.
• Boost in income from international markets.
• Removal of issues associated with variety.
• Profits diversification.
• Action towards being a strong worldwide brand.

Cons:

• Loss of extensive revenues from the regional markets.
• Increase in competition.
• Distinctions in cultures could led to a failure of the brand especially in Asian countries.
• Low earnings at initial levels.
• Increase in marketing expenditures to acquire market share.

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

Alternative 2 includes the introduction of online market places through creating a proper company's website. With the increased trends towards online shopping, the online stores like Amazon, Alibaba etc. could pose a severe danger to the market share of business. Furthermore, the competitors are moving towards click and Recommendations of Tempur Sealy International (C) Case Help stores with Gap introducing Piperline. This shift towards online markets might minimize the incomes for company. In this situation the company might think about presenting Click and Recommendations of Tempur Sealy International (C) Case Analysis shops. These stores with a low requirement of funds to settle would allow the business to reach international markets, without ending its domestic stores. The pros and cons of option 2 are offered as follows;

Pros:

• Low investment
• Minimizing competition hazard
• Access to the world markets
• Increasing the size of consumer base
• Easy to handle
• Large Revenues
• Low Operating Expense
• Easy new market entrance

Cons:

• Hazard to the market position
• Removal of brand name Originality
• Removal of the excellent store experience.
• Threat of decline 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 worldwide markets without closing its domestic stores that adds to the major part of revenues of the company. The pros and cons associated with Alternative 3 are offered listed below;

Pros:

• Reducing competition threat
• Access to the world markets
• Enlarging consumer base
• Large Earnings
• Expedition of brand-new global markets.
• Increase in profits from international markets.
• Revenue diversity.
• Action towards being a strong global brand name.

Cons:

• Continuation of concerns associated with variety.
• Differences in cultures could led to a failure of the brand name specifically in Asian nations.
• Low profits at initial levels.
• Increase in marketing expenses to get market share.



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