Recommendations of Questionable Payments Abroad: Gulf In Italy Case Help

Home >> Hbr >> Questionable Payments Abroad: Gulf In Italy >> Recommendations

Recommendations of Questionable Payments Abroad: Gulf In Italy Case Study Solution

On the basis of above internal and external analysis of the company along with the assessment of different alternatives, the business is recommended to consider alternative 3. As alternative 3 would permit the company to expand in worldwide markets without any reduction in its regional earnings and any degeneration of its market position. The business might pursue alternative 1 which would enable the business to focus on potential global markets rather than the local markets but as the business is highly dependent on the regional markets with 90% of its stores in the US, there fore pursuing option 1 would result in the considerable decline in business's earnings.

Aletrnative-1: Expanding International Brick and Recommendations of Questionable Payments Abroad: Gulf In Italy Case Solution Stores

Expansion towards international markets through opening brand-new stores in other Europe and Asian countries with closing domestic shops is although a great option for increasing the international existence of the business. The closing of domestic shops might highly affect the incomes of the company as above 90% of its stores are located domestically and closing those shops would eventually decrease the earnings of the company. Furthermore, the business has a long term market position in United States which can not be generated soon in the brand-new markets. The option would assist the company to expand in worldwide markets in addition to the removal of concerns raised in its regional markets associated with its diversity. The benefits and drawbacks for Alternative 1 are noted below;

Pros:

• Expedition of new worldwide markets.
• Boost in income from global markets.
• Elimination of problems associated with diversity.
• Earnings diversification.
• Action towards being a strong global brand.

Cons:

• Loss of comprehensive earnings from the regional markets.
• Increase in competition.
• Distinctions in cultures might caused a failure of the brand name specifically in Asian nations.
• Low revenues at initial levels.
• Increase in marketing expenses to acquire market share.

Alternative-2: Introduction of Click and Recommendations of Questionable Payments Abroad: Gulf In Italy Case Help Stores

With the increased trends towards online shopping, the online stores like Amazon, Alibaba etc. could position an extreme risk to the market share of business. In this situation the company could consider introducing Click and Recommendations of Questionable Payments Abroad: Gulf In Italy Case Help shops. These shops with a low requirement of funds to settle would enable the business to reach worldwide markets, without ending its domestic stores.

Pros:

• Low financial investment
• Reducing competition risk
• Access to the world markets
• Increasing the size of consumer base
• Easy to handle
• Big Profits
• Low Operating Expense
• Easy brand-new market entryway

Cons:

• Danger to the market position
• Elimination of brand name Uniqueness
• Elimination of the excellent store experience.
• Threat of decrease in elite sales.

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

Another alternative that the business could think about, is to broaden towards the international markets without closing its domestic stores that adds to the huge part of profits of the business. The pros and cons related to Alternative 3 are provided listed below;

Pros:

• Minimizing competition threat
• Access to the world markets
• Enlarging consumer base
• Big Earnings
• Exploration of new worldwide markets.
• Increase in income from international markets.
• Income diversification.
• Action towards being a strong international brand name.

Cons:

• Continuation of issues related to variety.
• Distinctions in cultures might resulted in a failure of the brand name specifically in Asian countries.
• Low earnings at preliminary levels.
• Increase in marketing expenses to get market share.



This is sample work and not applicable to real case study. Please place the order on the website to get your own originally done case solution.