Recommendations of Acer Inc.: Taiwans Rampaging Dragon Case Analysis

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Recommendations of Acer Inc.: Taiwans Rampaging Dragon Case Study Solution

On the basis of above internal and external analysis of the business along with the examination of numerous options, the business is suggested to think about alternative 3. As alternative 3 would permit the business to expand in global markets without any decrease in its regional incomes and any degeneration of its market position. The business might pursue alternative 1 which would enable the business to focus on potential worldwide markets rather than the local markets however as the company is extremely reliant on the local markets with 90% of its stores in the US, there fore pursuing alternative 1 would result in the considerable decrease in business's revenue.

Aletrnative-1: Expanding International Brick and Recommendations of Acer Inc.: Taiwans Rampaging Dragon Case Help Stores

Expansion towards global markets through opening brand-new shops in other Europe and Asian countries with closing domestic stores is although a good alternative for increasing the global existence of the company. Nevertheless, the closing of domestic stores could highly impact the incomes of the firm as above 90% of its shops are located locally and closing those stores would ultimately lower the earnings of the firm. The business has a long term market position in United States which can not be produced quickly in the brand-new markets. The option would assist the business to broaden in worldwide markets in addition to the removal of problems raised in its local markets related to its variety. The benefits and drawbacks for Option 1 are noted below;

Pros:

• Exploration of new global markets.
• Increase in revenue from worldwide markets.
• Elimination of concerns related to diversity.
• Earnings diversification.
• Action towards being a strong worldwide brand name.

Cons:

• Loss of comprehensive revenues from the local markets.
• Increase in competition.
• Differences in cultures might resulted in a failure of the brand especially in Asian countries.
• Low profits at preliminary levels.
• Increase in marketing expenditures to acquire market share.

Alternative-2: Introduction of Click and Recommendations of Acer Inc.: Taiwans Rampaging Dragon Case Solution Stores

With the increased patterns towards online shopping, the online stores like Amazon, Alibaba and so on could position a severe danger to the market share of business. In this situation the business might consider introducing Click and Recommendations of Acer Inc.: Taiwans Rampaging Dragon Case Help 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 shops.

Pros:

• Low financial investment
• Minimizing competitors danger
• Access to the world markets
• Expanding consumer base
• Easy to handle
• Large Revenues
• Low Operating Costs
• Easy brand-new market entrance

Cons:

• Threat to the market position
• Removal of brand name Individuality
• Removal of the great store experience.
• Risk of decline in elite sales.

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

Another option that the company might think about, is to expand towards the global markets without closing its domestic shops that adds to the huge part of profits of the company. The pros and cons related to Alternative 3 are provided below;

Pros:

• Minimizing competitors danger
• Access to the world markets
• Increasing the size of consumer base
• Big Incomes
• Exploration of brand-new global markets.
• Boost in profits from global markets.
• Income diversity.
• Action towards being a strong international brand.

Cons:

• Extension of issues associated with variety.
• Distinctions in cultures could caused a failure of the brand particularly in Asian countries.
• Low profits at preliminary levels.
• Increase in marketing expenses to get market share.



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