Recommendations of Ikeas Global Sourcing Challenge Case Help

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Recommendations of Ikeas Global Sourcing Challenge Case Study Analysis

On the basis of above internal and external analysis of the business along with the examination of different options, the business is advised to consider alternative 3. As alternative 3 would allow the business to expand in worldwide markets without any reduction in its local revenues and any degeneration of its market position. The business might pursue alternative 1 which would allow the business to focus on possible global markets rather than the regional markets however as the company is extremely reliant on the local markets with 90% of its shops in the United States, there fore pursuing alternative 1 would result in the considerable decrease in company's income.

Aletrnative-1: Expanding International Brick and Recommendations of Ikeas Global Sourcing Challenge Case Help Stores

The company has a long term market position in US which can not be produced soon in the brand-new markets. The choice would help the company to expand in worldwide markets along with the elimination of problems raised in its local markets related to its diversity.

Pros:

• Expedition of new global markets.
• Increase in profits from global markets.
• Removal of concerns associated with variety.
• Profits diversity.
• Step towards being a strong international brand.

Cons:

• Loss of comprehensive incomes from the regional markets.
• Boost in competitors.
• Differences in cultures might led to a failure of the brand particularly in Asian nations.
• Low revenues at initial levels.
• Increase in marketing expenses to acquire market share.

Alternative-2: Introduction of Click and Recommendations of Ikeas Global Sourcing Challenge Case Solution Stores

Alternative 2 includes the intro of online market places through producing an appropriate company's site. With the increased trends towards online shopping, the online shops like Amazon, Alibaba and so on could position a serious threat to the market share of business. The rivals are moving towards click and Recommendations of Ikeas Global Sourcing Challenge Case Help stores with Gap introducing Piperline. This shift towards online markets could minimize the revenues for business. In this scenario the business might think about introducing Click and Recommendations of Ikeas Global Sourcing Challenge Case Help shops. These stores with a low requirement of funds to settle would make it possible for the business to reach worldwide markets, without ending its domestic shops. The advantages and disadvantages of option 2 are provided as follows;

Pros:

• Low investment
• Minimizing competitors threat
• Access to the world markets
• Expanding customer base
• Easy to manage
• Large Incomes
• Low Operating Costs
• Easy brand-new market entryway

Cons:

• Risk to the market position
• Removal of brand name Originality
• Elimination of the great store experience.
• Risk of decrease in elite sales.

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

Another choice that the company could consider, is to broaden towards the international markets without closing its domestic shops that adds to the major part of revenues of the company. The benefits and drawbacks connected to Alternative 3 are given below;

Pros:

• Lowering competitors threat
• Access to the world markets
• Enlarging consumer base
• Big Revenues
• Exploration of brand-new global markets.
• Boost in revenue from international markets.
• Income diversity.
• Action towards being a strong worldwide brand.

Cons:

• Extension of issues related to diversity.
• Distinctions in cultures might caused a failure of the brand name particularly in Asian countries.
• Low profits at initial levels.
• Increase in marketing expenditures to gain market share.



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