Recommendations of Casas Bahia: Marketing To The Poor Case Help

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Recommendations of Casas Bahia: Marketing To The Poor Case Study Help

RecommendationsOn the basis of above internal and external analysis of the company along with the evaluation of numerous alternatives, the business is suggested to consider alternative 3. As alternative 3 would enable the business to broaden in global markets without any decrease in its regional revenues and any wear and tear of its market position. The company could pursue alternative 1 which would make it possible for the company to focus on potential worldwide markets rather than the local markets however as the company is highly dependent on the local markets with 90% of its stores in the US, there fore pursuing option 1 would result in the substantial decrease in business's revenue.

Aletrnative-1: Expanding International Brick and Recommendations of Casas Bahia: Marketing To The Poor Case Analysis Stores

International SegmentsGrowth towards global markets through opening brand-new stores in other Europe and Asian nations with closing domestic shops is although a great alternative for increasing the worldwide presence of the company. Nevertheless, the closing of domestic shops could extremely impact the profits of the company as above 90% of its stores lie locally and closing those stores would ultimately decrease the profits of the company. Additionally, the business has a long term market position in United States which can not be produced quickly in the new markets. The choice would assist the company to expand in international markets along with the elimination of problems raised in its local markets associated with its variety. The benefits and drawbacks for Alternative 1 are noted below;

Pros:

• Exploration of new worldwide markets.
• Increase in revenue from global markets.
• Elimination of problems connected to variety.
• Revenue diversification.
• Step towards being a strong global brand name.

Cons:

• Loss of extensive incomes from the local markets.
• Boost in competition.
• Differences in cultures might resulted in a failure of the brand specifically in Asian nations.
• Low incomes at preliminary levels.
• Boost in marketing expenses to acquire market share.

Alternative-2: Introduction of Click and Recommendations of Casas Bahia: Marketing To The Poor Case Solution Stores

With the increased patterns towards online shopping, the online shops like Amazon, Alibaba etc. might posture an extreme hazard to the market share of business. In this circumstance the business could consider presenting Click and Recommendations of Casas Bahia: Marketing To The Poor Case Solution shops. These shops with a low requirement of funds to settle would allow the business to reach worldwide markets, without ending its domestic shops.

Pros:

• Low investment
• Reducing competitors threat
• Access to the world markets
• Increasing the size of customer base
• Easy to manage
• Big Earnings
• Low Operating Costs
• Easy new market entryway

Cons:

• Danger to the market position
• Elimination of brand Uniqueness
• Removal of the terrific shop experience.
• Threat of decline in elite sales.

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

Another choice that the company could think about, is to broaden towards the worldwide markets without closing its domestic stores that contributes to the major part of earnings of the company. The pros and cons related to Alternative 3 are provided below;

Pros:

• Reducing competitors danger
• Access to the world markets
• Increasing the size of consumer base
• Large Profits
• Exploration of new global markets.
• Boost in profits from global markets.
• Earnings diversification.
• Step towards being a strong global brand name.

Cons:

• Extension of problems related to diversity.
• Differences in cultures might resulted in a failure of the brand specifically in Asian nations.
• Low earnings at preliminary levels.
• Increase in marketing expenses to gain market share.



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