Recommendations of Carrefours Strategies In China Case Solution

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Recommendations of Carrefours Strategies In China Case Study Solution

On the basis of above internal and external analysis of the business in addition to the evaluation of different alternatives, the business is suggested to think about alternative 3. As alternative 3 would permit the business to expand in worldwide markets without any decrease in its regional incomes and any wear and tear of its market position. By considering Alternative 3, the company might preserve its store experience and brand name individuality. However, it might also consider alternative 2 that might allow the business to access the marketplaces with no possible investment. Although, the business could pursue alternative 1 which would make it possible for the business to focus on prospective worldwide markets rather than the regional markets however as the business is extremely based on the regional markets with 90% of its stores in the United States, there fore pursuing alternative 1 would lead to the significant decline in company's income. For that reason, the company is advised to think about alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of Carrefours Strategies In China Case Help Stores

Expansion towards worldwide markets through opening new shops in other Europe and Asian countries with closing domestic shops is although a good alternative for increasing the international existence of the company. The closing of domestic shops might extremely impact the profits of the firm as above 90% of its shops are located locally and closing those stores would eventually decrease the revenues of the company. 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 business to broaden in worldwide markets together with the removal of concerns raised in its regional markets related to its diversity. The benefits and drawbacks for Option 1 are noted below;

Pros:

• Expedition of new worldwide markets.
• Increase in income from worldwide markets.
• Removal of issues associated with diversity.
• Revenue diversity.
• Action towards being a strong worldwide brand.

Cons:

• Loss of substantial incomes from the regional markets.
• Increase in competition.
• Distinctions in cultures could resulted in a failure of the brand name specifically in Asian nations.
• Low profits at initial levels.
• Boost in marketing expenditures to acquire market share.

Alternative-2: Introduction of Click and Recommendations of Carrefours Strategies In China Case Analysis Stores

With the increased patterns towards online shopping, the online shops like Amazon, Alibaba etc. could position an extreme risk to the market share of business. In this situation the company could think about introducing Click and Recommendations of Carrefours Strategies In China Case Solution stores. These stores 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 investment
• Lowering competitors danger
• Access to the world markets
• Enlarging customer base
• Easy to handle
• Big Incomes
• Low Operating Costs
• Easy brand-new market entrance

Cons:

• Hazard to the market position
• Removal of brand Originality
• Removal of the terrific store experience.
• Threat of decrease in elite sales.

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

Another alternative that the business might consider, is to expand towards the worldwide markets without closing its domestic shops that adds to the major part of profits of the company. The benefits and drawbacks associated with Alternative 3 are provided listed below;

Pros:

• Lowering competition danger
• Access to the world markets
• Expanding consumer base
• Big Earnings
• Exploration of new worldwide markets.
• Increase in income from worldwide markets.
• Income diversity.
• Action towards being a strong worldwide brand name.

Cons:

• Continuation of issues associated with variety.
• Differences in cultures could led to a failure of the brand specifically in Asian nations.
• Low incomes at preliminary levels.
• Increase in marketing expenses to get market share.



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