Recommendations of Philips Group - 1990 Case Analysis

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Recommendations of Philips Group - 1990 Case Study Analysis

On the basis of above internal and external analysis of the business along with the assessment of numerous alternatives, the company is advised to think about alternative 3. As alternative 3 would enable the business to broaden in worldwide markets without any reduction in its regional profits and any wear and tear of its market position. The business could pursue alternative 1 which would enable the company to focus on prospective international markets rather than the regional markets however as the business is extremely reliant on the regional markets with 90% of its shops in the US, there fore pursuing alternative 1 would result in the considerable decrease in business's profits.

Aletrnative-1: Expanding International Brick and Recommendations of Philips Group - 1990 Case Analysis Stores

The company has a long term market position in United States which can not be created soon in the new markets. The option would help the company to expand in international markets along with the elimination of problems raised in its regional markets related to its diversity.

Pros:

• Expedition of brand-new global markets.
• Increase in income from international markets.
• Removal of issues related to variety.
• Revenue diversification.
• Step towards being a strong global brand name.

Cons:

• Loss of substantial incomes from the regional markets.
• Increase in competition.
• Distinctions in cultures could led to a failure of the brand name especially in Asian nations.
• Low revenues at initial levels.
• Boost in marketing expenses to get market share.

Alternative-2: Introduction of Click and Recommendations of Philips Group - 1990 Case Analysis Stores

With the increased trends towards online shopping, the online shops like Amazon, Alibaba and so on might position a serious threat to the market share of company. In this circumstance the business could think about presenting Click and Recommendations of Philips Group - 1990 Case Analysis stores. 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 investment
• Lowering competitors danger
• Access to the world markets
• Expanding consumer base
• Easy to manage
• Big Incomes
• Low Operating Costs
• Easy brand-new market entryway

Cons:

• Threat to the marketplace position
• Elimination of brand Uniqueness
• 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 broaden towards the worldwide markets without closing its domestic stores that contributes to the huge part of incomes of the business. The advantages and disadvantages related to Alternative 3 are given below;

Pros:

• Decreasing competitors danger
• Access to the world markets
• Enlarging consumer base
• Big Revenues
• Expedition of brand-new global markets.
• Boost in earnings from worldwide markets.
• Income diversity.
• Step towards being a strong global brand name.

Cons:

• Extension of problems related to diversity.
• Differences in cultures might resulted in a failure of the brand particularly in Asian countries.
• Low profits at initial levels.
• Boost in marketing expenses to gain market share.



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