Recommendations of Ikeas Environmental Practices Making Good Business Sense Case Solution

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Recommendations of Ikeas Environmental Practices Making Good Business Sense Case Study Analysis

On the basis of above internal and external analysis of the business together with the evaluation of different alternatives, the business is suggested to think about alternative 3. As alternative 3 would enable the company to broaden in global markets without any reduction in its regional incomes and any wear and tear of its market position. By considering Alternative 3, the business could preserve its store experience and brand name individuality. It could likewise think about alternative 2 that could allow the business to access the markets without any prospective financial investment. Although, the business might pursue alternative 1 which would enable the company to concentrate on possible global markets instead of the regional markets however as the company is highly dependent on the regional markets with 90% of its shops in the United States, there fore pursuing alternative 1 would lead to the significant decrease in business's revenue. For that reason, the company is recommended to think about alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of Ikeas Environmental Practices Making Good Business Sense Case Help Stores

Expansion towards global markets through opening new stores in other Europe and Asian countries with closing domestic stores is although a great choice for increasing the global presence of the business. Nevertheless, the closing of domestic shops might highly affect the incomes of the company as above 90% of its shops lie domestically and closing those stores would ultimately reduce the incomes of the company. 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 international markets in addition to the elimination of concerns raised in its local markets connected to its diversity. The benefits and drawbacks for Alternative 1 are noted below;

Pros:

• Exploration of new worldwide markets.
• Increase in revenue from worldwide markets.
• Elimination of problems connected to diversity.
• Profits diversification.
• Step towards being a strong worldwide brand name.

Cons:

• Loss of comprehensive incomes from the regional markets.
• Boost in competitors.
• Differences in cultures might caused a failure of the brand specifically in Asian nations.
• Low revenues at initial levels.
• Increase in marketing expenses to acquire market share.

Alternative-2: Introduction of Click and Recommendations of Ikeas Environmental Practices Making Good Business Sense Case Solution Stores

With the increased patterns towards online shopping, the online stores like Amazon, Alibaba and so on might present a severe risk to the market share of company. In this situation the company could think about presenting Click and Recommendations of Ikeas Environmental Practices Making Good Business Sense Case Solution shops. These stores with a low requirement of funds to settle would allow the business to reach international markets, without ending its domestic shops.

Pros:

• Low financial investment
• Minimizing competition hazard
• Access to the world markets
• Expanding consumer base
• Easy to handle
• Big Revenues
• Low Operating Costs
• Easy new market entryway

Cons:

• Danger to the market position
• Removal of brand name Individuality
• Elimination of the fantastic shop experience.
• Danger of decline in elite sales.

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

Another choice that the business could think about, is to expand towards the international markets without closing its domestic stores that adds to the major part of incomes of the company. The benefits and drawbacks connected to Alternative 3 are given below;

Pros:

• Minimizing competitors danger
• Access to the world markets
• Increasing the size of consumer base
• Large Revenues
• Expedition of brand-new global markets.
• Boost in earnings from worldwide markets.
• Earnings diversification.
• Action towards being a strong global brand.

Cons:

• Continuation of concerns connected to diversity.
• Differences in cultures might caused a failure of the brand name specifically in Asian countries.
• Low earnings at initial levels.
• Boost in marketing expenses to gain market share.



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