Recommendations of British American Tobacco In South Korea Case Solution

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Recommendations of British American Tobacco In South Korea Case Study Analysis

On the basis of above internal and external analysis of the business in addition to the examination of numerous options, the company is suggested to think about alternative 3. As alternative 3 would allow the company to expand in global markets with no reduction in its regional revenues and any degeneration of its market position. By considering Alternative 3, the business might maintain its store experience and brand individuality. It might likewise think about alternative 2 that might permit the company to access the markets without any potential investment. Although, the company might pursue alternative 1 which would enable the company to concentrate on possible international markets instead of the local markets however as the business is extremely depending on the regional markets with 90% of its shops in the US, there fore pursuing alternative 1 would result in the considerable decline in company's profits. For that reason, the business is recommended to consider alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of British American Tobacco In South Korea Case Solution Stores

Expansion towards international markets through opening new stores in other Europe and Asian nations with closing domestic shops is although an excellent alternative for increasing the international presence of the business. The closing of domestic stores might extremely affect the incomes of the firm as above 90% of its shops are located locally and closing those shops would ultimately lower the earnings of the company. The company has a long term market position in US which can not be produced soon in the brand-new markets. The option would assist the business to expand in global markets along with the removal of concerns raised in its local markets related to its variety. The benefits and drawbacks for Option 1 are noted below;

Pros:

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

Cons:

• Loss of comprehensive earnings from the regional markets.
• Boost in competitors.
• Distinctions in cultures could resulted in a failure of the brand name specifically in Asian countries.
• Low profits at initial levels.
• Boost in marketing expenditures to get market share.

Alternative-2: Introduction of Click and Recommendations of British American Tobacco In South Korea Case Solution Stores

Alternative 2 includes the intro of online market places through creating an appropriate company's website. With the increased trends towards online shopping, the online stores like Amazon, Alibaba and so on might position a serious risk to the market share of business. Moreover, the rivals are shifting towards click and Recommendations of British American Tobacco In South Korea Case Solution shops with Gap introducing Piperline. This shift towards online markets could decrease the earnings for company. In this circumstance the business could think about presenting Click and Recommendations of British American Tobacco In South Korea Case Help stores. These stores with a low requirement of funds to settle would make it possible for the company to reach worldwide markets, without ending its domestic stores. The advantages and disadvantages of option 2 are provided as follows;

Pros:

• Low investment
• Minimizing competitors danger
• Access to the world markets
• Increasing the size of customer base
• Easy to handle
• Big Incomes
• Low Operating Costs
• Easy brand-new market entryway

Cons:

• Threat to the marketplace position
• Elimination of brand Originality
• Elimination of the fantastic store experience.
• Risk of decrease in elite sales.

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

Another choice that the company could think about, is to expand towards the worldwide markets without closing its domestic stores that adds to the huge part of revenues of the company. The benefits and drawbacks related to Alternative 3 are offered listed below;

Pros:

• Minimizing competitors danger
• Access to the world markets
• Enlarging consumer base
• Big Earnings
• Exploration of new global markets.
• Boost in revenue from worldwide markets.
• Income diversity.
• Action towards being a strong global brand.

Cons:

• Continuation of issues associated with diversity.
• Differences in cultures could led to a failure of the brand name particularly in Asian countries.
• Low profits at initial levels.
• Boost in marketing expenses to gain market share.



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