Recommendations of Icici Bank Innovations In Microfinance Case Solution

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Recommendations of Icici Bank Innovations In Microfinance Case Study Analysis

On the basis of above internal and external analysis of the business together with the examination of various alternatives, the business is suggested to think about alternative 3. As alternative 3 would permit the business to broaden in worldwide markets without any reduction in its local incomes and any degeneration of its market position. By thinking about Alternative 3, the business might keep its shop experience and brand name individuality. However, it could likewise think about alternative 2 that might allow the business to access the marketplaces with no potential financial investment. Although, the company could pursue alternative 1 which would allow the business to concentrate on possible global markets rather than the local markets however as the company is extremely depending on the local markets with 90% of its shops in the US, there fore pursuing alternative 1 would lead to the substantial decrease in company's earnings. The company is advised to think about alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of Icici Bank Innovations In Microfinance Case Solution Stores

Expansion towards global markets through opening brand-new stores in other Europe and Asian countries with closing domestic shops is although a great option for increasing the worldwide existence of the business. Nevertheless, the closing of domestic shops might highly affect the revenues of the company as above 90% of its shops are located domestically and closing those stores would eventually reduce the profits of the company. The business has a long term market position in US which can not be created soon in the brand-new markets. The choice would help the business to expand in worldwide markets along with the elimination of issues raised in its regional markets associated with its variety. The benefits and drawbacks for Alternative 1 are listed below;

Pros:

• Expedition of brand-new worldwide markets.
• Boost in earnings from international markets.
• Removal of problems related to diversity.
• Profits diversification.
• Action towards being a strong worldwide brand.

Cons:

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

Alternative-2: Introduction of Click and Recommendations of Icici Bank Innovations In Microfinance Case Analysis Stores

With the increased trends towards online shopping, the online stores like Amazon, Alibaba etc. might pose a severe danger to the market share of business. In this scenario the company might think about introducing Click and Recommendations of Icici Bank Innovations In Microfinance Case Analysis stores. These shops with a low requirement of funds to settle would enable the business to reach global markets, without ending its domestic stores.

Pros:

• Low financial investment
• Lowering competitors danger
• Access to the world markets
• Expanding consumer base
• Easy to handle
• Large Incomes
• Low Operating Costs
• Easy brand-new market entrance

Cons:

• Risk to the market position
• Elimination of brand name Individuality
• Elimination 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 might think about, is to expand towards the worldwide markets without closing its domestic stores that adds to the huge part of earnings of the business. The advantages and disadvantages connected to Alternative 3 are offered below;

Pros:

• Minimizing competition threat
• Access to the world markets
• Enlarging customer base
• Large Profits
• Expedition of brand-new global markets.
• Boost in income from worldwide markets.
• Income diversification.
• Step towards being a strong global brand name.

Cons:

• Continuation of concerns connected to diversity.
• Distinctions in cultures could led to a failure of the brand especially in Asian countries.
• Low incomes at preliminary levels.
• Boost in marketing expenditures to gain market share.



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