Recommendations of Global Wine War 2015: New World Versus Old Case Solution

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Recommendations of Global Wine War 2015: New World Versus Old Case Study Analysis

On the basis of above internal and external analysis of the business together with the examination of different alternatives, the company is recommended to think about alternative 3. As alternative 3 would enable the business to broaden in international markets with no reduction in its regional revenues and any wear and tear of its market position. By thinking about Alternative 3, the business might keep its shop experience and brand name individuality. It could also consider alternative 2 that might enable the company to access the markets without any potential financial investment. The company could pursue alternative 1 which would enable the company to focus on prospective global markets rather than the regional markets however as the company is highly dependent on the regional markets with 90% of its shops in the US, there fore pursuing option 1 would result in the substantial decrease in business's revenue. The company is suggested to think about alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of Global Wine War 2015: New World Versus Old Case Solution Stores

Growth towards international markets through opening brand-new stores in other Europe and Asian countries with closing domestic stores is although a great alternative for increasing the global existence of the company. However, the closing of domestic shops might extremely impact the incomes of the firm as above 90% of its shops lie domestically and closing those shops would eventually minimize the earnings of the firm. The company has a long term market position in United States which can not be produced quickly in the brand-new markets. The choice would help the company to broaden in worldwide markets in addition to the elimination of problems raised in its local markets connected to its diversity. The benefits and drawbacks for Option 1 are noted below;

Pros:

• Exploration of brand-new global markets.
• Boost in revenue from worldwide markets.
• Removal of problems related to diversity.
• Income diversification.
• Action towards being a strong global brand.

Cons:

• Loss of extensive revenues from the regional markets.
• Boost in competitors.
• Distinctions in cultures might resulted in a failure of the brand name especially in Asian nations.
• Low revenues at preliminary levels.
• Increase in marketing expenses to acquire market share.

Alternative-2: Introduction of Click and Recommendations of Global Wine War 2015: New World Versus Old Case Solution Stores

Alternative 2 consists of the introduction of online market locations through generating an appropriate business's site. With the increased patterns towards online shopping, the online stores like Amazon, Alibaba and so on could position an extreme danger to the market share of business. Moreover, the competitors are moving towards click and Recommendations of Global Wine War 2015: New World Versus Old Case Solution stores with Space introducing Piperline. This shift towards online markets might decrease the incomes for company. In this scenario the business could think about introducing Click and Recommendations of Global Wine War 2015: New World Versus Old Case Solution stores. These shops with a low requirement of funds to settle would make it possible for the company to reach global markets, without ending its domestic stores. The advantages and disadvantages of option 2 are offered as follows;

Pros:

• Low investment
• Reducing competition threat
• Access to the world markets
• Expanding consumer base
• Easy to manage
• Large Revenues
• Low Operating Expense
• Easy brand-new market entrance

Cons:

• Risk to the market position
• Elimination of brand Uniqueness
• Removal of the great shop experience.
• Danger of decline in elite sales.

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

Another choice that the company could think about, is to expand towards the global markets without closing its domestic stores that contributes to the huge part of incomes of the business. The benefits and drawbacks associated with Alternative 3 are provided below;

Pros:

• Lowering competitors risk
• Access to the world markets
• Enlarging consumer base
• Big Earnings
• Exploration of new global markets.
• Boost in revenue from worldwide markets.
• Income diversification.
• Step towards being a strong global brand.

Cons:

• Continuation of issues associated with diversity.
• Distinctions in cultures could led to a failure of the brand name especially in Asian nations.
• Low incomes at preliminary levels.
• Increase in marketing expenditures to get market share.



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