Recommendations of The Soul Of A New Machine Case Help

Home >> Harvard Business School >> The Soul Of A New Machine >> Recommendations

Recommendations of The Soul Of A New Machine Case Study Analysis

On the basis of above internal and external analysis of the business together with the evaluation of various alternatives, the company is recommended to consider alternative 3. As alternative 3 would enable the business to broaden in global markets with no reduction in its regional earnings and any deterioration of its market position. By thinking about Alternative 3, the company might preserve its shop experience and brand originality. It could also consider alternative 2 that could permit the business to access the markets without any prospective investment. Although, the company could pursue alternative 1 which would make it possible for the company to concentrate on possible international markets instead of the regional markets however as the business is extremely based on the regional markets with 90% of its stores in the US, there fore pursuing alternative 1 would result in the considerable decline in company's revenue. For that reason, the business is recommended to think about alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of The Soul Of A New Machine Case Help Stores

Growth towards international markets through opening brand-new stores in other Europe and Asian countries with closing domestic shops is although an excellent option for increasing the worldwide existence of the company. The closing of domestic shops could extremely impact the earnings of the firm as above 90% of its stores are located locally and closing those stores would eventually lower the profits of the company. Furthermore, the business has a long term market position in United States which can not be created quickly in the brand-new markets. The choice would help the company to broaden in international markets along with the elimination of concerns raised in its local markets related to its diversity. The pros and Cons for Option 1 are listed below;

Pros:

• Exploration of brand-new worldwide markets.
• Boost in earnings from international markets.
• Removal of concerns connected to variety.
• Earnings diversity.
• Step towards being a strong worldwide brand.

Cons:

• Loss of substantial revenues from the local markets.
• Boost in competitors.
• Differences in cultures could resulted in a failure of the brand name specifically in Asian countries.
• Low revenues at initial levels.
• Increase in marketing expenditures to get market share.

Alternative-2: Introduction of Click and Recommendations of The Soul Of A New Machine Case Solution Stores

With the increased patterns towards online shopping, the online stores like Amazon, Alibaba etc. might posture an extreme danger to the market share of company. In this situation the company could think about introducing Click and Recommendations of The Soul Of A New Machine Case Analysis stores. These stores 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 investment
• Reducing competitors danger
• Access to the world markets
• Enlarging customer base
• Easy to manage
• Big Earnings
• Low Operating Expense
• Easy new market entrance

Cons:

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

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

Another alternative that the company might think about, is to broaden towards the worldwide markets without closing its domestic shops that adds to the huge part of revenues of the business. The pros and cons associated with Alternative 3 are offered listed below;

Pros:

• Reducing competitors threat
• Access to the world markets
• Enlarging consumer base
• Big Incomes
• Expedition of new worldwide markets.
• Boost in profits from international markets.
• Income diversity.
• Action towards being a strong international brand name.

Cons:

• Continuation of problems connected to variety.
• Distinctions in cultures might caused a failure of the brand name especially in Asian countries.
• Low earnings at preliminary levels.
• Increase in marketing expenditures to gain market share.



This is sample work and not applicable to real case study. Please place the order on the website to get your own originally done case solution.