Recommendations of Microsofts Vega Project: Matt Maclellans Decision Case Help

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Recommendations of Microsofts Vega Project: Matt Maclellans Decision Case Study Solution

On the basis of above internal and external analysis of the business along with the examination of different options, the company is suggested to think about alternative 3. As alternative 3 would permit the business to expand in international markets without any decrease in its regional profits and any wear and tear of its market position. The business might pursue alternative 1 which would make it possible for the company to focus on prospective international markets rather than the regional markets but as the company is extremely dependent on the local markets with 90% of its stores in the United States, there fore pursuing alternative 1 would result in the considerable decrease in business's earnings.

Aletrnative-1: Expanding International Brick and Recommendations of Microsofts Vega Project: Matt Maclellans Decision Case Analysis Stores

Expansion towards global markets through opening brand-new shops in other Europe and Asian nations with closing domestic shops is although a great alternative for increasing the international existence of the company. However, the closing of domestic shops could extremely affect the profits of the firm as above 90% of its stores are located domestically and closing those stores would eventually lower the earnings of the firm. 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 broaden in international markets together with the elimination of concerns raised in its regional markets connected to its variety. The advantages and disadvantages for Option 1 are noted below;

Pros:

• Expedition of brand-new international markets.
• Increase in earnings from international markets.
• Elimination of problems related to diversity.
• Earnings diversification.
• Step towards being a strong worldwide brand name.

Cons:

• Loss of extensive revenues from the local markets.
• Increase in competition.
• Differences in cultures might led to a failure of the brand specifically in Asian nations.
• Low revenues at preliminary levels.
• Boost in marketing expenditures to acquire market share.

Alternative-2: Introduction of Click and Recommendations of Microsofts Vega Project: Matt Maclellans Decision Case Solution Stores

With the increased patterns towards online shopping, the online stores like Amazon, Alibaba etc. could posture a serious hazard to the market share of business. In this circumstance the company could think about presenting Click and Recommendations of Microsofts Vega Project: Matt Maclellans Decision Case Analysis shops. These shops with a low requirement of funds to settle would make it possible for the business to reach global markets, without ending its domestic stores.

Pros:

• Low financial investment
• Minimizing competition hazard
• Access to the world markets
• Enlarging consumer base
• Easy to handle
• Large Earnings
• Low Operating Costs
• Easy new market entrance

Cons:

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

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

Another option that the company could think about, is to broaden towards the international markets without closing its domestic shops that contributes to the major part of revenues of the company. The benefits and drawbacks associated with Alternative 3 are given listed below;

Pros:

• Lowering competition danger
• Access to the world markets
• Enlarging customer base
• Big Profits
• Exploration of brand-new worldwide markets.
• Increase in income from worldwide markets.
• Earnings diversification.
• Action towards being a strong worldwide brand name.

Cons:

• Continuation of problems associated with diversity.
• Distinctions in cultures could caused a failure of the brand specifically in Asian nations.
• Low revenues at preliminary levels.
• Increase in marketing expenses to get market share.



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