Recommendations of Gap Incs Ethical Procurement Practices Case Help

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Recommendations of Gap Incs Ethical Procurement Practices Case Study Analysis

RecommendationsOn the basis of above internal and external analysis of the company along with the evaluation of numerous options, the business is advised to consider alternative 3. As alternative 3 would enable the company to broaden in international markets without any decrease in its local revenues and any degeneration of its market position. The company could pursue alternative 1 which would make it possible for the company to focus on prospective worldwide markets rather than the local markets however as the business is highly 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 revenue.

Aletrnative-1: Expanding International Brick and Recommendations of Gap Incs Ethical Procurement Practices Case Solution Stores

International SegmentsThe business has a long term market position in US which can not be created soon in the brand-new markets. The alternative would help the company to expand in international markets along with the removal of issues raised in its local markets related to its diversity.

Pros:

• Exploration of brand-new global markets.
• Boost in earnings from international markets.
• Elimination of concerns connected to diversity.
• Profits diversity.
• Step towards being a strong worldwide brand name.

Cons:

• Loss of extensive profits from the regional markets.
• Increase in competitors.
• Distinctions in cultures might led to a failure of the brand particularly in Asian countries.
• Low earnings at initial levels.
• Increase in marketing expenditures to acquire market share.

Alternative-2: Introduction of Click and Recommendations of Gap Incs Ethical Procurement Practices Case Analysis Stores

With the increased patterns towards online shopping, the online stores like Amazon, Alibaba etc. could posture an extreme danger to the market share of company. In this situation the company could consider introducing Click and Recommendations of Gap Incs Ethical Procurement Practices Case Analysis stores. These shops with a low requirement of funds to settle would make it possible for the business to reach global markets, without ending its domestic shops.

Pros:

• Low financial investment
• Reducing competition risk
• Access to the world markets
• Expanding customer base
• Easy to manage
• Large Profits
• Low Operating Costs
• Easy brand-new market entryway

Cons:

• Danger to the marketplace position
• Elimination of brand Individuality
• Elimination of the fantastic store experience.
• Danger of decrease in elite sales.

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

Another alternative that the company might think about, is to broaden towards the worldwide markets without closing its domestic shops that contributes to the huge part of earnings of the company. The advantages and disadvantages related to Alternative 3 are provided listed below;

Pros:

• Reducing competition threat
• Access to the world markets
• Enlarging customer base
• Large Profits
• Exploration of new worldwide markets.
• Increase in income from global markets.
• Revenue diversification.
• Action towards being a strong international brand name.

Cons:

• Continuation of concerns associated with variety.
• Distinctions in cultures could led to a failure of the brand specifically in Asian nations.
• Low revenues at preliminary levels.
• Boost in marketing expenses to gain market share.



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