Recommendations of General Electric: Jack Welchs Second Wave (A) Case Solution

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Recommendations of General Electric: Jack Welchs Second Wave (A) Case Study Solution

On the basis of above internal and external analysis of the company along with the assessment of numerous options, the company is recommended to think about alternative 3. As alternative 3 would permit the company to expand in global markets without any decrease in its local incomes and any deterioration of its market position. By thinking about Alternative 3, the company could keep its store experience and brand uniqueness. Nevertheless, it could also consider alternative 2 that could enable the business to access the marketplaces without any potential investment. The company might pursue alternative 1 which would make it possible for the company to focus on potential international markets rather than the local markets however as the business is extremely dependent 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 profits. Therefore, the business is advised to think about alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of General Electric: Jack Welchs Second Wave (A) Case Help Stores

The company has a long term market position in United States which can not be produced soon in the brand-new markets. The choice would assist the company to broaden in worldwide markets along with the removal of problems raised in its local markets related to its variety.

Pros:

• Expedition of brand-new worldwide markets.
• Boost in income from worldwide markets.
• Elimination of problems connected to variety.
• Income diversification.
• Action towards being a strong international brand name.

Cons:

• Loss of extensive profits from the local markets.
• Increase in competitors.
• Differences in cultures could resulted in a failure of the brand specifically in Asian countries.
• Low earnings at preliminary levels.
• Boost in marketing expenditures to get market share.

Alternative-2: Introduction of Click and Recommendations of General Electric: Jack Welchs Second Wave (A) Case Help Stores

Alternative 2 consists of the intro of online market locations through generating an appropriate business's site. With the increased patterns towards online shopping, the online stores like Amazon, Alibaba etc. could present an extreme hazard to the market share of company. Furthermore, the rivals are shifting towards click and Recommendations of General Electric: Jack Welchs Second Wave (A) Case Analysis stores with Gap introducing Piperline. This shift towards online markets could minimize the revenues for company. In this circumstance the business might consider presenting Click and Recommendations of General Electric: Jack Welchs Second Wave (A) Case Analysis shops. These stores with a low requirement of funds to settle would make it possible for the company to reach international markets, without ending its domestic stores. The pros and cons of alternative 2 are given as follows;

Pros:

• Low financial investment
• Reducing competitors danger
• Access to the world markets
• Increasing the size of customer base
• Easy to manage
• Big Earnings
• Low Operating Costs
• Easy new market entryway

Cons:

• Hazard to the market position
• Removal of brand Originality
• Elimination of the fantastic shop experience.
• Risk of decline in elite sales.

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

Another option that the business might consider, is to expand towards the international markets without closing its domestic shops that adds to the huge part of profits of the company. The benefits and drawbacks related to Alternative 3 are provided below;

Pros:

• Decreasing competitors hazard
• Access to the world markets
• Expanding consumer base
• Large Incomes
• Exploration of new worldwide markets.
• Boost in profits from global markets.
• Income diversity.
• Action towards being a strong global brand name.

Cons:

• Extension of concerns related to variety.
• Distinctions in cultures might led to a failure of the brand name particularly in Asian nations.
• Low earnings at preliminary levels.
• Boost in marketing expenses to get market share.



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