Recommendations of Haier: The Chinese Global Competitor Case Help

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Recommendations of Haier: The Chinese Global Competitor Case Study Analysis

On the basis of above internal and external analysis of the business along with the assessment of numerous alternatives, the business is advised to consider alternative 3. As alternative 3 would permit the company to broaden in worldwide markets without any reduction in its regional earnings and any deterioration of its market position. The business could pursue alternative 1 which would allow the business to focus on possible worldwide markets rather than the local markets however as the business is highly dependent on the regional markets with 90% of its stores in the United States, there fore pursuing alternative 1 would result in the considerable decline in company's earnings.

Aletrnative-1: Expanding International Brick and Recommendations of Haier: The Chinese Global Competitor Case Help Stores

The company has a long term market position in US which can not be generated quickly in the brand-new markets. The alternative would help the business to broaden in global markets along with the elimination of concerns raised in its local markets related to its diversity.

Pros:

• Expedition of brand-new global markets.
• Increase in profits from international markets.
• Removal of concerns connected to variety.
• Revenue diversification.
• Action towards being a strong worldwide brand name.

Cons:

• Loss of comprehensive revenues from the regional markets.
• Boost in competition.
• Distinctions in cultures might resulted in a failure of the brand especially in Asian nations.
• Low earnings at preliminary levels.
• Increase in marketing expenses to acquire market share.

Alternative-2: Introduction of Click and Recommendations of Haier: The Chinese Global Competitor Case Help Stores

With the increased trends towards online shopping, the online stores like Amazon, Alibaba etc. might pose an extreme danger to the market share of business. In this scenario the business might consider introducing Click and Recommendations of Haier: The Chinese Global Competitor Case Analysis stores. These shops with a low requirement of funds to settle would enable the company to reach international markets, without ending its domestic stores.

Pros:

• Low investment
• Reducing competition threat
• Access to the world markets
• Expanding consumer base
• Easy to manage
• Big Revenues
• Low Operating Expense
• Easy new market entrance

Cons:

• Threat to the marketplace position
• Elimination of brand name Originality
• Elimination of the terrific store experience.
• Danger of decline in elite sales.

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

Another option that the business might consider, is to broaden towards the international markets without closing its domestic stores that adds to the major part of incomes of the company. The advantages and disadvantages related to Alternative 3 are offered below;

Pros:

• Lowering competition threat
• Access to the world markets
• Enlarging customer base
• Big Profits
• Expedition of brand-new international markets.
• Boost in earnings from international markets.
• Income diversification.
• Action towards being a strong global brand name.

Cons:

• Extension of concerns related to variety.
• Differences in cultures might caused a failure of the brand name especially in Asian countries.
• Low incomes at preliminary levels.
• Increase in marketing expenditures to acquire market share.



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