Recommendations of Skandia Afs: Developing Intellectual Capital Globally Case Solution

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Recommendations of Skandia Afs: Developing Intellectual Capital Globally Case Study Analysis

On the basis of above internal and external analysis of the company along with the assessment of numerous options, the business is suggested to think about alternative 3. As alternative 3 would allow the business to broaden in global markets without any decrease in its local incomes and any degeneration of its market position. By thinking about Alternative 3, the company might maintain its shop experience and brand uniqueness. However, it could likewise consider alternative 2 that could enable the business to access the markets with no possible financial investment. The company could pursue alternative 1 which would enable the business to focus on possible international markets rather than the regional markets however as the company is extremely reliant on the regional markets with 90% of its shops in the United States, there fore pursuing option 1 would result in the considerable decline in company's income. The company is recommended to consider alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of Skandia Afs: Developing Intellectual Capital Globally Case Analysis Stores

The business 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 company to expand in global markets along with the removal of issues raised in its regional markets related to its diversity.

Pros:

• Expedition of brand-new international markets.
• Boost in revenue from global markets.
• Removal of issues related to diversity.
• Revenue diversification.
• Step towards being a strong worldwide brand.

Cons:

• Loss of comprehensive incomes from the local markets.
• Boost in competition.
• Distinctions in cultures might resulted in a failure of the brand name particularly in Asian nations.
• Low revenues at preliminary levels.
• Increase in marketing expenses to acquire market share.

Alternative-2: Introduction of Click and Recommendations of Skandia Afs: Developing Intellectual Capital Globally Case Analysis Stores

With the increased patterns towards online shopping, the online shops like Amazon, Alibaba and so on might posture a severe hazard to the market share of company. In this situation the business might think about introducing Click and Recommendations of Skandia Afs: Developing Intellectual Capital Globally Case Solution stores. These stores with a low requirement of funds to settle would enable the company to reach international markets, without ending its domestic stores.

Pros:

• Low financial investment
• Lowering competition threat
• Access to the world markets
• Increasing the size of consumer base
• Easy to handle
• Big Incomes
• Low Operating Costs
• Easy brand-new market entryway

Cons:

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

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

Another choice that the business could consider, is to expand towards the international markets without closing its domestic shops that contributes to the major part of revenues of the business. The advantages and disadvantages associated with Alternative 3 are given listed below;

Pros:

• Decreasing competition threat
• Access to the world markets
• Expanding customer base
• Large Revenues
• Exploration of brand-new international markets.
• Boost in revenue from international markets.
• Revenue diversity.
• Step towards being a strong international brand name.

Cons:

• Extension of problems related to diversity.
• Differences in cultures might resulted in a failure of the brand name particularly in Asian countries.
• Low incomes at preliminary levels.
• Increase in marketing expenses to get market share.



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