Recommendations of Ikeas Global Sourcing Challenge: Indian Rugs And Child Labor (B) Case Solution

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Recommendations of Ikeas Global Sourcing Challenge: Indian Rugs And Child Labor (B) Case Study Help

On the basis of above internal and external analysis of the business along with the examination of various options, the business is advised to consider alternative 3. As alternative 3 would permit the company to broaden in worldwide markets without any reduction in its local earnings and any wear and tear of its market position. The business might pursue alternative 1 which would allow the company to focus on possible international markets rather than the local markets but as the business is extremely dependent on the local markets with 90% of its shops in the US, there fore pursuing option 1 would result in the significant decrease in business's revenue.

Aletrnative-1: Expanding International Brick and Recommendations of Ikeas Global Sourcing Challenge: Indian Rugs And Child Labor (B) Case Solution Stores

The company has a long term market position in US which can not be generated soon in the new markets. The option would help the business to expand in global markets along with the removal of problems raised in its regional markets related to its diversity.

Pros:

• Expedition of brand-new international markets.
• Boost in earnings from worldwide markets.
• Removal of concerns associated with variety.
• Profits diversity.
• Step towards being a strong global brand name.

Cons:

• Loss of extensive incomes from the regional markets.
• Increase in competition.
• Distinctions in cultures could caused a failure of the brand name particularly in Asian countries.
• Low incomes at preliminary levels.
• Boost in marketing expenditures to get market share.

Alternative-2: Introduction of Click and Recommendations of Ikeas Global Sourcing Challenge: Indian Rugs And Child Labor (B) Case Analysis Stores

With the increased patterns towards online shopping, the online shops like Amazon, Alibaba and so on could present a severe hazard to the market share of business. In this scenario the company could consider introducing Click and Recommendations of Ikeas Global Sourcing Challenge: Indian Rugs And Child Labor (B) Case Analysis stores. These stores with a low requirement of funds to settle would allow the company to reach global markets, without ending its domestic shops.

Pros:

• Low investment
• Decreasing competition threat
• Access to the world markets
• Enlarging consumer base
• Easy to manage
• Large Incomes
• Low Operating Expense
• Easy brand-new market entrance

Cons:

• Threat to the marketplace position
• Removal of brand name Uniqueness
• Elimination of the terrific store experience.
• Risk 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 contributes to the huge part of revenues of the company. The advantages and disadvantages related to Alternative 3 are offered listed below;

Pros:

• Decreasing competitors hazard
• Access to the world markets
• Expanding consumer base
• Big Incomes
• Expedition of new international markets.
• Boost in income from international markets.
• Income diversification.
• Step towards being a strong global brand.

Cons:

• Continuation of concerns related to diversity.
• Distinctions in cultures might caused a failure of the brand name specifically in Asian nations.
• Low incomes at initial levels.
• Increase in marketing expenditures to get market share.



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