Recommendations of The National Geographic Society (A) Case Solution

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Recommendations of The National Geographic Society (A) Case Study Analysis

On the basis of above internal and external analysis of the company along with the assessment of different alternatives, the business is advised to think about alternative 3. As alternative 3 would allow the business to broaden in global markets without any reduction in its regional earnings and any wear and tear of its market position. The business could pursue alternative 1 which would make it possible for the business to focus on prospective worldwide markets rather than the local 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 substantial decline in business's revenue.

Aletrnative-1: Expanding International Brick and Recommendations of The National Geographic Society (A) Case Solution Stores

Expansion towards worldwide markets through opening brand-new shops in other Europe and Asian countries with closing domestic stores is although a good choice for increasing the worldwide presence of the company. The closing of domestic shops could extremely impact the earnings of the firm as above 90% of its stores are located domestically and closing those shops would ultimately reduce the profits of the firm. The business has a long term market position in United States which can not be created soon in the brand-new markets. The option would assist the company to expand in worldwide markets in addition to the elimination of concerns raised in its regional markets associated with its diversity. The pros and Cons for Alternative 1 are listed below;

Pros:

• Exploration of new international markets.
• Boost in profits from worldwide markets.
• Elimination of concerns related to variety.
• Profits diversity.
• Step towards being a strong global brand name.

Cons:

• Loss of substantial revenues from the local markets.
• Boost in competitors.
• Distinctions in cultures might led to a failure of the brand specifically in Asian countries.
• Low earnings at initial levels.
• Increase in marketing expenses to gain market share.

Alternative-2: Introduction of Click and Recommendations of The National Geographic Society (A) Case Analysis Stores

With the increased trends towards online shopping, the online stores like Amazon, Alibaba and so on could pose an extreme danger to the market share of company. In this situation the business might think about presenting Click and Recommendations of The National Geographic Society (A) Case Solution shops. These shops with a low requirement of funds to settle would enable the company to reach worldwide markets, without ending its domestic stores.

Pros:

• Low investment
• Reducing competition risk
• Access to the world markets
• Enlarging consumer base
• Easy to handle
• Large Profits
• Low Operating Costs
• Easy brand-new market entrance

Cons:

• Hazard to the market position
• Elimination of brand name Uniqueness
• Removal of the excellent shop experience.
• Danger of decrease in elite sales.

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

Another option that the company could consider, is to broaden towards the worldwide markets without closing its domestic shops that adds to the huge part of profits of the business. The pros and cons associated with Alternative 3 are given listed below;

Pros:

• Reducing competitors risk
• Access to the world markets
• Expanding customer base
• Large Earnings
• Exploration of new global markets.
• Increase in profits from international markets.
• Earnings diversity.
• Action towards being a strong global brand.

Cons:

• Continuation of issues associated with diversity.
• Distinctions in cultures might caused a failure of the brand name specifically in Asian countries.
• Low profits at preliminary levels.
• Boost in marketing expenses to acquire market share.



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