Recommendations of Asea Brown Boveri Case Help

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Recommendations of Asea Brown Boveri Case Study Analysis

RecommendationsOn the basis of above internal and external analysis of the company along with the examination of numerous alternatives, the company is advised to consider alternative 3. As alternative 3 would allow the company to broaden in worldwide markets without any decrease in its regional profits and any degeneration of its market position. The company might pursue alternative 1 which would make it possible for the company to focus on potential global markets rather than the local markets however as the company is highly dependent on the regional markets with 90% of its stores in the US, there fore pursuing alternative 1 would result in the considerable decrease in company's profits.

Aletrnative-1: Expanding International Brick and Recommendations of Asea Brown Boveri Case Help Stores

International SegmentsGrowth towards worldwide markets through opening new stores in other Europe and Asian countries with closing domestic stores is although an excellent option for increasing the international existence of the business. The closing of domestic shops might highly affect the revenues of the company as above 90% of its shops are located locally and closing those stores would eventually reduce the incomes of the firm. Furthermore, the business has a long term market position in United States which can not be generated soon in the brand-new markets. The alternative would help the company to expand in international markets along with the removal of concerns raised in its local markets connected to its variety. The advantages and disadvantages for Option 1 are listed below;

Pros:

• Exploration of brand-new global markets.
• Boost in earnings from international markets.
• Elimination of concerns connected to diversity.
• Profits diversification.
• Step towards being a strong global brand.

Cons:

• Loss of extensive earnings from the local markets.
• Boost in competition.
• Differences in cultures might caused a failure of the brand name specifically in Asian countries.
• Low earnings at preliminary levels.
• Increase in marketing expenses to get market share.

Alternative-2: Introduction of Click and Recommendations of Asea Brown Boveri Case Solution Stores

Alternative 2 includes the intro of online market locations through producing a proper company's site. With the increased patterns towards online shopping, the online stores like Amazon, Alibaba and so on could posture a severe danger to the market share of company. Additionally, the rivals are shifting towards click and Recommendations of Asea Brown Boveri Case Analysis stores with Gap presenting Piperline. This shift towards online markets might reduce the earnings for business. In this scenario the business might consider introducing Click and Recommendations of Asea Brown Boveri Case Analysis stores. These stores with a low requirement of funds to settle would enable the company to reach international markets, without ending its domestic shops. The benefits and drawbacks of option 2 are provided as follows;

Pros:

• Low investment
• Decreasing competition risk
• Access to the world markets
• Enlarging customer base
• Easy to handle
• Big Revenues
• Low Operating Costs
• Easy brand-new market entrance

Cons:

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

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

Another option that the business could consider, is to expand towards the worldwide markets without closing its domestic stores that contributes to the huge part of incomes of the company. The pros and cons connected to Alternative 3 are offered listed below;

Pros:

• Minimizing competitors danger
• Access to the world markets
• Expanding customer base
• Large Earnings
• Exploration of new global markets.
• Boost in revenue from global markets.
• Income diversification.
• Action towards being a strong international brand name.

Cons:

• Continuation of issues connected to diversity.
• Differences in cultures might led to a failure of the brand specifically in Asian countries.
• Low profits at preliminary levels.
• Increase in marketing expenses to get market share.



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