Recommendations of Building Competitive Advantage Through People Case Analysis

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Recommendations of Building Competitive Advantage Through People Case Study Solution

On the basis of above internal and external analysis of the company together with the assessment of various options, the company is recommended to consider alternative 3. As alternative 3 would allow the business to expand in worldwide markets with no reduction in its local profits and any degeneration of its market position. By thinking about Alternative 3, the company might maintain its shop experience and brand individuality. However, it might also think about alternative 2 that could allow the business to access the marketplaces with no prospective investment. The business could pursue alternative 1 which would allow the business to focus on possible global markets rather than the regional markets but as the business is highly dependent on the local markets with 90% of its stores in the US, there fore pursuing option 1 would result in the significant decrease in company's income. Therefore, the company is advised to consider alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of Building Competitive Advantage Through People Case Analysis Stores

Growth towards international markets through opening new shops in other Europe and Asian countries with closing domestic stores is although an excellent choice for increasing the worldwide existence of the business. However, the closing of domestic shops could extremely affect the incomes of the firm as above 90% of its shops lie locally and closing those stores would eventually minimize the earnings of the firm. The business has a long term market position in United States which can not be produced quickly in the new markets. The alternative would help the company to expand in global markets in addition to the elimination of issues raised in its local markets associated with its diversity. The pros and Cons for Option 1 are listed below;

Pros:

• Expedition of brand-new global markets.
• Increase in earnings from worldwide markets.
• Removal of problems associated with variety.
• Income diversification.
• Step towards being a strong worldwide brand name.

Cons:

• Loss of comprehensive revenues from the regional markets.
• Boost in competition.
• Differences in cultures could led to a failure of the brand particularly in Asian nations.
• Low profits at preliminary levels.
• Increase in marketing expenditures to gain market share.

Alternative-2: Introduction of Click and Recommendations of Building Competitive Advantage Through People Case Analysis Stores

Alternative 2 includes the introduction of online market locations through generating a proper company's site. With the increased patterns towards online shopping, the online shops like Amazon, Alibaba etc. might position a serious danger to the marketplace share of business. The competitors are shifting towards click and Recommendations of Building Competitive Advantage Through People Case Analysis shops with Space presenting Piperline. This shift towards online markets could minimize the earnings for company. In this scenario the company might think about introducing Click and Recommendations of Building Competitive Advantage Through People Case Solution stores. These shops with a low requirement of funds to settle would allow the business to reach global markets, without ending its domestic stores. The advantages and disadvantages of option 2 are given as follows;

Pros:

• Low investment
• Decreasing competition hazard
• Access to the world markets
• Increasing the size of customer base
• Easy to manage
• Big Incomes
• Low Operating Costs
• Easy new market entrance

Cons:

• Danger to the marketplace position
• Removal of brand name Individuality
• Removal of the terrific store experience.
• Threat of decrease in elite sales.

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

Another option that the business could consider, is to broaden towards the worldwide markets without closing its domestic stores that adds to the huge part of earnings of the company. The advantages and disadvantages connected to Alternative 3 are provided below;

Pros:

• Minimizing competition hazard
• Access to the world markets
• Expanding customer base
• Big Earnings
• Expedition of brand-new international markets.
• Boost in income from global markets.
• Income diversity.
• Step towards being a strong worldwide brand name.

Cons:

• Continuation of concerns connected to variety.
• Distinctions in cultures might caused a failure of the brand particularly in Asian nations.
• Low incomes at preliminary levels.
• Increase in marketing expenditures to gain market share.



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