Recommendations of Ebay - Staying Online - Always Case Analysis

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Recommendations of Ebay - Staying Online - Always Case Study Help

On the basis of above internal and external analysis of the business in addition to the evaluation of various options, the business is suggested to consider alternative 3. As alternative 3 would allow the company to expand in international markets with no decrease in its regional incomes and any wear and tear of its market position. By thinking about Alternative 3, the company might maintain its shop experience and brand originality. However, it might also think about alternative 2 that might allow the company to access the markets without any potential investment. Although, the business could pursue alternative 1 which would enable the business to focus on prospective worldwide markets instead of the regional markets but as the business is highly depending on the regional markets with 90% of its stores in the United States, there fore pursuing option 1 would result in the substantial decrease in company's profits. The business is suggested to consider alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of Ebay - Staying Online - Always Case Help Stores

Growth towards global markets through opening brand-new shops in other Europe and Asian countries with closing domestic stores is although a good alternative for increasing the international existence of the business. The closing of domestic stores might highly impact the revenues of the firm as above 90% of its stores are located domestically and closing those stores would ultimately decrease the revenues of the firm. The company has a long term market position in United States which can not be created soon in the brand-new markets. The alternative would help the business to broaden in worldwide markets in addition to the removal of issues raised in its regional markets related to its diversity. The benefits and drawbacks for Option 1 are listed below;

Pros:

• Exploration of brand-new international markets.
• Increase in revenue from worldwide markets.
• Elimination of issues connected to diversity.
• Earnings diversity.
• Step towards being a strong worldwide brand name.

Cons:

• Loss of substantial incomes from the local markets.
• Boost in competition.
• Distinctions in cultures might resulted in a failure of the brand name especially in Asian nations.
• Low revenues at preliminary levels.
• Increase in marketing expenditures to gain market share.

Alternative-2: Introduction of Click and Recommendations of Ebay - Staying Online - Always Case Help Stores

With the increased patterns towards online shopping, the online shops like Amazon, Alibaba and so on could position an extreme hazard to the market share of company. In this situation the company might think about introducing Click and Recommendations of Ebay - Staying Online - Always Case Help stores. These stores with a low requirement of funds to settle would enable the company to reach global markets, without ending its domestic shops.

Pros:

• Low financial investment
• Decreasing competitors risk
• Access to the world markets
• Expanding customer base
• Easy to handle
• Large Revenues
• Low Operating Costs
• Easy new market entryway

Cons:

• Hazard to the market position
• Removal of brand name Individuality
• Elimination of the excellent shop experience.
• Threat of decline in elite sales.

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

Another choice that the company might consider, is to broaden towards the global markets without closing its domestic stores that contributes to the major part of profits of the business. The pros and cons connected to Alternative 3 are offered listed below;

Pros:

• Lowering competition hazard
• Access to the world markets
• Enlarging consumer base
• Large Incomes
• Exploration of new worldwide markets.
• Increase in revenue from global markets.
• Profits diversity.
• Action towards being a strong worldwide brand.

Cons:

• Continuation of issues associated with variety.
• Differences in cultures might caused a failure of the brand name especially in Asian nations.
• Low profits at initial levels.
• Increase in marketing expenses to acquire market share.



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