Recommendations of Mckinsey And Company: Managing Knowledge And Learning Case Analysis

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Recommendations of Mckinsey And Company: Managing Knowledge And Learning Case Study Help

On the basis of above internal and external analysis of the business along with the evaluation of various options, the business is advised to think about alternative 3. As alternative 3 would permit the business to expand in global markets without any decrease in its local earnings and any wear and tear of its market position. The business could pursue alternative 1 which would enable the company to focus on potential international markets rather than the local markets however as the company is extremely reliant on the local markets with 90% of its shops in the US, there fore pursuing alternative 1 would result in the considerable decrease in company's revenue.

Aletrnative-1: Expanding International Brick and Recommendations of Mckinsey And Company: Managing Knowledge And Learning Case Help Stores

Growth towards global markets through opening new stores in other Europe and Asian countries with closing domestic shops is although an excellent choice for increasing the international existence of the company. Nevertheless, the closing of domestic shops could extremely impact the earnings of the firm as above 90% of its stores are located domestically and closing those stores would eventually reduce the earnings of the firm. Moreover, the company has a long term market position in US which can not be created quickly in the new markets. The option would assist the company to expand in international markets along with the removal of concerns raised in its local markets connected to its diversity. The advantages and disadvantages for Alternative 1 are listed below;

Pros:

• Exploration of new international markets.
• Boost in profits from global markets.
• Elimination of problems associated with diversity.
• Profits diversity.
• Step towards being a strong worldwide brand name.

Cons:

• Loss of substantial earnings from the regional markets.
• Increase in competitors.
• Differences in cultures could resulted in a failure of the brand name particularly in Asian countries.
• Low revenues at preliminary levels.
• Boost in marketing expenses to gain market share.

Alternative-2: Introduction of Click and Recommendations of Mckinsey And Company: Managing Knowledge And Learning Case Help Stores

With the increased trends towards online shopping, the online stores like Amazon, Alibaba etc. could pose a serious danger to the market share of business. In this circumstance the business could consider presenting Click and Recommendations of Mckinsey And Company: Managing Knowledge And Learning Case Solution shops. These stores with a low requirement of funds to settle would allow the business to reach global markets, without ending its domestic shops.

Pros:

• Low financial investment
• Decreasing competition hazard
• Access to the world markets
• Expanding consumer base
• Easy to manage
• Big Incomes
• Low Operating Costs
• Easy brand-new market entrance

Cons:

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

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

Another option that the company could consider, is to expand towards the international markets without closing its domestic shops that contributes to the huge part of revenues of the company. The benefits and drawbacks related to Alternative 3 are offered listed below;

Pros:

• Minimizing competitors threat
• Access to the world markets
• Expanding customer base
• Large Earnings
• Exploration of new global markets.
• Boost in revenue from international markets.
• Income diversification.
• Step towards being a strong international brand.

Cons:

• Extension of concerns associated with diversity.
• Differences in cultures could led to a failure of the brand name specifically in Asian countries.
• Low revenues at initial levels.
• Increase in marketing expenses to gain market share.



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