Recommendations of Levendary Cafe: The China Challenge Case Solution

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Recommendations of Levendary Cafe: The China Challenge Case Study Analysis

On the basis of above internal and external analysis of the company along with the assessment of different options, the business is suggested to consider alternative 3. As alternative 3 would permit the business to expand in worldwide markets without any decrease in its regional incomes and any wear and tear of its market position. The business might pursue alternative 1 which would enable the company to focus on potential worldwide markets rather than the regional markets but as the business is highly dependent on the regional markets with 90% of its shops in the United States, there fore pursuing alternative 1 would result in the considerable decrease in business's profits.

Aletrnative-1: Expanding International Brick and Recommendations of Levendary Cafe: The China Challenge Case Help Stores

The company has a long term market position in United States which can not be created quickly in the brand-new markets. The alternative would help the company to expand in international markets along with the elimination of concerns raised in its regional markets related to its variety.

Pros:

• Exploration of brand-new global markets.
• Increase in earnings from global markets.
• Removal of problems related to variety.
• Revenue diversification.
• Action towards being a strong global brand.

Cons:

• Loss of substantial earnings from the regional markets.
• Boost in competitors.
• Distinctions in cultures could resulted in a failure of the brand name specifically in Asian countries.
• Low earnings at initial levels.
• Increase in marketing expenses to acquire market share.

Alternative-2: Introduction of Click and Recommendations of Levendary Cafe: The China Challenge Case Analysis Stores

With the increased trends towards online shopping, the online shops like Amazon, Alibaba and so on could position an extreme risk to the market share of business. In this scenario the business might think about presenting Click and Recommendations of Levendary Cafe: The China Challenge Case Help stores. These stores with a low requirement of funds to settle would enable the company to reach international markets, without ending its domestic shops.

Pros:

• Low financial investment
• Lowering competition danger
• Access to the world markets
• Increasing the size of customer base
• Easy to manage
• Big Profits
• Low Operating Costs
• Easy brand-new market entryway

Cons:

• Danger to the marketplace position
• Elimination of brand Originality
• Removal of the excellent store experience.
• Risk of decrease in elite sales.

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

Another alternative that the business could consider, is to broaden towards the global markets without closing its domestic stores that adds to the major part of earnings of the business. The pros and cons related to Alternative 3 are offered below;

Pros:

• Decreasing competition hazard
• Access to the world markets
• Increasing the size of consumer base
• Big Earnings
• Exploration of new worldwide markets.
• Boost in profits from worldwide markets.
• Earnings diversification.
• Action towards being a strong worldwide brand.

Cons:

• Extension of problems connected to diversity.
• Differences in cultures might led to a failure of the brand specifically in Asian countries.
• Low profits at initial levels.
• Boost in marketing expenditures to gain market share.



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