Recommendations of Nike In Transition (C): A Second Coo Case Analysis

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Recommendations of Nike In Transition (C): A Second Coo Case Study Analysis

On the basis of above internal and external analysis of the business along with the assessment of various options, the company is advised to think about alternative 3. As alternative 3 would enable the company to expand in worldwide markets without any reduction in its local incomes and any degeneration of its market position. The company could pursue alternative 1 which would make it possible for the company to focus on potential international markets rather than the local markets but as the business is highly reliant on the local markets with 90% of its shops in the United States, there fore pursuing alternative 1 would result in the significant decline in company's income.

Aletrnative-1: Expanding International Brick and Recommendations of Nike In Transition (C): A Second Coo Case Help Stores

Growth towards international markets through opening brand-new stores in other Europe and Asian countries with closing domestic stores is although a great option for increasing the global presence of the company. The closing of domestic shops might highly impact the revenues of the firm as above 90% of its stores are located locally and closing those shops would eventually decrease the profits of the company. Additionally, the company has a long term market position in United States which can not be generated soon in the brand-new markets. The choice would help the business to broaden in international markets along with the removal of concerns raised in its regional markets connected to its diversity. The benefits and drawbacks for Alternative 1 are noted below;

Pros:

• Exploration of brand-new global markets.
• Boost in profits from worldwide markets.
• Elimination of concerns related to diversity.
• Income diversity.
• Step towards being a strong worldwide brand name.

Cons:

• Loss of comprehensive incomes from the regional markets.
• Boost in competition.
• Distinctions in cultures could led to a failure of the brand especially in Asian countries.
• Low revenues at preliminary levels.
• Increase in marketing expenditures to acquire market share.

Alternative-2: Introduction of Click and Recommendations of Nike In Transition (C): A Second Coo Case Solution Stores

Alternative 2 includes the intro of online market places through producing a proper business's website. With the increased trends towards online shopping, the online stores like Amazon, Alibaba and so on could present a serious hazard to the market share of company. Furthermore, the competitors are moving towards click and Recommendations of Nike In Transition (C): A Second Coo Case Help stores with Gap presenting Piperline. This shift towards online markets could reduce the incomes for company. In this circumstance the company could think about presenting Click and Recommendations of Nike In Transition (C): A Second Coo Case Solution stores. These shops with a low requirement of funds to settle would allow the business to reach international markets, without ending its domestic shops. The benefits and drawbacks of option 2 are offered as follows;

Pros:

• Low financial investment
• Lowering competition threat
• Access to the world markets
• Enlarging customer base
• Easy to manage
• Large Profits
• Low Operating Costs
• Easy brand-new market entrance

Cons:

• Risk to the market position
• Elimination of brand Individuality
• Elimination of the fantastic shop experience.
• Risk of decline 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 stores that contributes to the major part of earnings of the business. The benefits and drawbacks associated with Alternative 3 are provided below;

Pros:

• Minimizing competition risk
• Access to the world markets
• Enlarging customer base
• Big Revenues
• Exploration of brand-new global markets.
• Boost in income from worldwide markets.
• Revenue diversification.
• Action towards being a strong international brand.

Cons:

• Continuation of problems related to diversity.
• Distinctions in cultures might resulted in a failure of the brand name especially in Asian nations.
• Low earnings at initial levels.
• Boost in marketing expenditures to get market share.



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