Recommendations of Silvio Napoli Cross Cultural Management Case Solution

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Recommendations of Silvio Napoli Cross Cultural Management Case Study Analysis

On the basis of above internal and external analysis of the company along with the evaluation of numerous options, the business is suggested to think about alternative 3. As alternative 3 would allow the business to expand in global markets without any reduction in its regional profits and any deterioration of its market position. By considering Alternative 3, the business might maintain its store experience and brand individuality. It could likewise consider alternative 2 that might enable the business to access the markets without any potential financial investment. The business might pursue alternative 1 which would allow the business to focus on possible worldwide markets rather than the local markets however as the business is highly dependent on the local markets with 90% of its shops in the United States, there fore pursuing option 1 would result in the substantial decrease in company's profits. The company is recommended to think about alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of Silvio Napoli Cross Cultural Management Case Analysis Stores

Growth towards international markets through opening new shops in other Europe and Asian countries with closing domestic shops is although a great alternative for increasing the international existence of the company. Nevertheless, the closing of domestic shops might highly affect the incomes of the firm as above 90% of its shops are located domestically and closing those stores would ultimately reduce the incomes of the company. The company has a long term market position in United States which can not be generated soon in the new markets. The alternative would assist the business to broaden in global markets in addition to the elimination of concerns raised in its local markets connected to its diversity. The benefits and drawbacks for Alternative 1 are listed below;

Pros:

• Expedition of new worldwide markets.
• Increase in income from worldwide markets.
• Removal of issues connected to variety.
• Profits diversification.
• Step towards being a strong global brand.

Cons:

• Loss of substantial profits from the local markets.
• Increase in competition.
• Distinctions in cultures might resulted in a failure of the brand especially in Asian nations.
• Low earnings at preliminary levels.
• Increase in marketing expenditures to gain market share.

Alternative-2: Introduction of Click and Recommendations of Silvio Napoli Cross Cultural Management Case Solution Stores

With the increased trends towards online shopping, the online stores like Amazon, Alibaba etc. could posture an extreme risk to the market share of business. In this situation the company could think about introducing Click and Recommendations of Silvio Napoli Cross Cultural Management Case Solution 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 financial investment
• Minimizing competition hazard
• Access to the world markets
• Increasing the size of customer base
• Easy to manage
• Large Earnings
• Low Operating Expense
• Easy new market entrance

Cons:

• Risk to the market position
• Elimination of brand Individuality
• Elimination of the fantastic store experience.
• Risk of decline in elite sales.

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

Another alternative that the business could consider, is to broaden towards the worldwide markets without closing its domestic stores that adds to the huge part of profits of the company. The advantages and disadvantages connected to Alternative 3 are offered listed below;

Pros:

• Lowering competition threat
• Access to the world markets
• Enlarging customer base
• Large Incomes
• Expedition of new worldwide markets.
• Increase in revenue from worldwide markets.
• Profits diversity.
• Action towards being a strong international brand name.

Cons:

• Continuation of issues related to diversity.
• Differences in cultures might led to a failure of the brand especially in Asian nations.
• Low incomes at preliminary levels.
• Boost in marketing expenditures to gain market share.



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