Recommendations of Business Transformation At Telefonica De Espana Case Solution

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Recommendations of Business Transformation At Telefonica De Espana Case Study Analysis

On the basis of above internal and external analysis of the business along with the examination of various alternatives, the company is recommended to consider alternative 3. As alternative 3 would permit the business to expand in global markets without any decrease in its regional profits and any degeneration of its market position. The company could pursue alternative 1 which would enable the business to focus on potential worldwide markets rather than the regional markets however as the business is extremely reliant on the regional markets with 90% of its stores in the US, there fore pursuing alternative 1 would result in the substantial decrease in business's income.

Aletrnative-1: Expanding International Brick and Recommendations of Business Transformation At Telefonica De Espana Case Solution Stores

The business has a long term market position in US which can not be created quickly in the brand-new markets. The option would help the business to broaden in international markets along with the removal of issues raised in its local markets related to its diversity.

Pros:

• Expedition of new international markets.
• Boost in profits from global markets.
• Elimination of problems connected to diversity.
• Revenue diversity.
• Step towards being a strong worldwide brand name.

Cons:

• Loss of extensive revenues from the local markets.
• Increase in competitors.
• Differences in cultures might caused a failure of the brand name particularly in Asian countries.
• Low earnings at preliminary levels.
• Increase in marketing expenditures to acquire market share.

Alternative-2: Introduction of Click and Recommendations of Business Transformation At Telefonica De Espana Case Solution Stores

With the increased trends towards online shopping, the online stores like Amazon, Alibaba and so on could pose a serious hazard to the market share of company. In this circumstance the business could consider introducing Click and Recommendations of Business Transformation At Telefonica De Espana Case Analysis shops. These shops with a low requirement of funds to settle would enable the business to reach international markets, without ending its domestic stores.

Pros:

• Low investment
• Lowering competition threat
• Access to the world markets
• Increasing the size of customer base
• Easy to handle
• Large Earnings
• Low Operating Costs
• Easy brand-new market entryway

Cons:

• Risk to the market position
• Elimination of brand name Originality
• Removal of the excellent store experience.
• Risk of decrease in elite sales.

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

Another option that the business could think about, is to expand towards the international markets without closing its domestic shops that adds to the huge part of profits of the business. The advantages and disadvantages associated with Alternative 3 are given below;

Pros:

• Lowering competition threat
• Access to the world markets
• Enlarging consumer base
• Big Profits
• Expedition of brand-new international markets.
• Boost in revenue from global markets.
• Revenue diversification.
• Step towards being a strong international brand name.

Cons:

• Continuation of concerns connected to diversity.
• Distinctions in cultures could led to a failure of the brand particularly in Asian nations.
• Low profits at initial levels.
• Boost in marketing expenses to get market share.



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