Recommendations of Dells Supply Chain Management Practices Case Analysis

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Recommendations of Dells Supply Chain Management Practices Case Study Solution

On the basis of above internal and external analysis of the business along with the assessment of different options, the company is suggested to think about alternative 3. As alternative 3 would enable the company to expand in worldwide markets with no decrease in its local earnings and any degeneration of its market position. By considering Alternative 3, the business might keep its shop experience and brand name uniqueness. It might likewise consider alternative 2 that could enable the company to access the markets without any potential investment. Although, the company could pursue alternative 1 which would allow the company to concentrate on prospective international markets rather than the local markets however as the business is extremely dependent on the local markets with 90% of its stores in the US, there fore pursuing alternative 1 would result in the considerable decrease in company's earnings. For that reason, the business is advised to consider alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of Dells Supply Chain Management Practices Case Analysis Stores

Expansion towards international markets through opening new shops in other Europe and Asian nations with closing domestic shops is although a great choice for increasing the worldwide presence of the business. However, the closing of domestic shops might highly affect the profits of the firm as above 90% of its shops lie locally and closing those stores would ultimately decrease the earnings of the firm. The company has a long term market position in US which can not be produced soon in the brand-new markets. The alternative would help the business to broaden in international markets together with the elimination of issues raised in its regional markets connected to its variety. The advantages and disadvantages for Alternative 1 are listed below;

Pros:

• Exploration of new worldwide markets.
• Increase in profits from international markets.
• Elimination of problems associated with diversity.
• Earnings diversity.
• Action towards being a strong worldwide brand name.

Cons:

• Loss of substantial profits from the regional markets.
• Boost in competitors.
• Distinctions in cultures could led to a failure of the brand name particularly in Asian nations.
• Low revenues at initial levels.
• Boost in marketing expenditures to acquire market share.

Alternative-2: Introduction of Click and Recommendations of Dells Supply Chain Management Practices Case Help Stores

With the increased trends towards online shopping, the online stores like Amazon, Alibaba and so on might present an extreme danger to the market share of company. In this scenario the company could consider introducing Click and Recommendations of Dells Supply Chain Management Practices Case Analysis shops. These shops with a low requirement of funds to settle would allow the company to reach global markets, without ending its domestic shops.

Pros:

• Low investment
• Decreasing competition risk
• Access to the world markets
• Expanding customer base
• Easy to handle
• Large Earnings
• Low Operating Expense
• Easy brand-new market entrance

Cons:

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

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

Another choice that the company could consider, is to expand towards the international markets without closing its domestic stores that contributes to the major part of profits of the company. The pros and cons associated with Alternative 3 are offered listed below;

Pros:

• Decreasing competitors threat
• Access to the world markets
• Increasing the size of customer base
• Large Revenues
• Expedition of new international markets.
• Increase in income from worldwide markets.
• Earnings diversity.
• Step towards being a strong international brand name.

Cons:

• Continuation of issues connected to diversity.
• Distinctions in cultures might caused a failure of the brand name particularly in Asian countries.
• Low revenues at initial levels.
• Boost in marketing expenditures to acquire market share.



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