Recommendations of Valuing Snap After The Ipo Quiet Period (A) Case Help
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Recommendations of Valuing Snap After The Ipo Quiet Period (A) Case Study Analysis
On the basis of above internal and external analysis of the business along with the evaluation of different options, the company is suggested to think about alternative 3. As alternative 3 would allow the company to expand in international markets without any decrease in its regional incomes and any degeneration of its market position. The company could pursue alternative 1 which would make it possible for the business to focus on prospective global markets rather than the regional markets but as the company is highly dependent on the local markets with 90% of its stores in the United States, there fore pursuing alternative 1 would result in the considerable decrease in company's income.
Aletrnative-1: Expanding International Brick and Recommendations of Valuing Snap After The Ipo Quiet Period (A) Case Solution Stores
Growth towards global 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 existence of the company. Nevertheless, the closing of domestic stores could highly affect the incomes of the firm as above 90% of its shops are located domestically and closing those shops would eventually reduce the profits of the firm. Additionally, the company has a long term market position in United States which can not be produced soon in the new markets. The option would assist the business to broaden in international markets together with the elimination of problems raised in its regional markets connected to its variety. The advantages and disadvantages for Alternative 1 are noted below;
Pros:
• Exploration of new global markets.
• Boost in revenue from global markets.
• Removal of problems connected to variety.
• Profits diversification.
• Action towards being a strong worldwide brand name.
Cons:
• Loss of substantial incomes from the regional markets.
• Boost in competition.
• Differences in cultures might caused a failure of the brand name specifically in Asian nations.
• Low earnings at initial levels.
• Increase in marketing expenditures to get market share.
Alternative-2: Introduction of Click and Recommendations of Valuing Snap After The Ipo Quiet Period (A) Case Solution Stores
Alternative 2 consists of the intro of online market places through creating a correct company's site. With the increased trends towards online shopping, the online stores like Amazon, Alibaba and so on might position a serious danger to the market share of business. Furthermore, the competitors are shifting towards click and Recommendations of Valuing Snap After The Ipo Quiet Period (A) Case Solution shops with Space presenting Piperline. This shift towards online markets could minimize the revenues for business. In this circumstance the company could think about introducing Click and Recommendations of Valuing Snap After The Ipo Quiet Period (A) Case Solution stores. These stores with a low requirement of funds to settle would enable the company to reach global markets, without ending its domestic stores. The advantages and disadvantages of alternative 2 are offered as follows;
Pros:
• Low financial investment
• Minimizing competitors danger
• Access to the world markets
• Expanding customer base
• Easy to manage
• Big Profits
• Low Operating Costs
• Easy new market entrance
Cons:
• Hazard to the market position
• Removal of brand Individuality
• Removal of the great store experience.
• Danger of decline 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 stores that adds to the huge part of profits of the company. The benefits and drawbacks related to Alternative 3 are provided below;
Pros:
• Lowering competition danger
• Access to the world markets
• Enlarging customer base
• Large Earnings
• Expedition of brand-new global markets.
• Increase in earnings from worldwide markets.
• Earnings diversification.
• Step towards being a strong worldwide brand.
Cons:
• Continuation of problems related to diversity.
• Differences in cultures could resulted in a failure of the brand name particularly in Asian countries.
• Low profits at preliminary levels.
• Increase in marketing expenses to gain market share.
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