Recommendations of Ikeas Social And Environmental Responsibility Initiatives Case Help

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Recommendations of Ikeas Social And Environmental Responsibility Initiatives Case Study Solution

On the basis of above internal and external analysis of the business along with the examination of numerous alternatives, the business is suggested to think about alternative 3. As alternative 3 would allow the company to broaden in international markets without any reduction in its local incomes and any deterioration of its market position. The business might pursue alternative 1 which would enable the company to focus on possible global markets rather than the local markets but as the company is extremely reliant on the local markets with 90% of its shops in the United States, there fore pursuing alternative 1 would result in the significant decrease in company's earnings.

Aletrnative-1: Expanding International Brick and Recommendations of Ikeas Social And Environmental Responsibility Initiatives Case Analysis Stores

The company has a long term market position in United States which can not be generated soon in the brand-new markets. The choice would help the company to broaden in international markets along with the elimination of concerns raised in its local markets related to its variety.

Pros:

• Expedition of brand-new worldwide markets.
• Boost in profits from global markets.
• Removal of concerns related to variety.
• Earnings diversity.
• Action towards being a strong worldwide brand name.

Cons:

• Loss of substantial profits from the local markets.
• Boost in competitors.
• Differences in cultures could resulted in a failure of the brand name particularly in Asian nations.
• Low profits at initial levels.
• Increase in marketing expenses to get market share.

Alternative-2: Introduction of Click and Recommendations of Ikeas Social And Environmental Responsibility Initiatives Case Analysis Stores

Alternative 2 includes the intro of online market locations through producing a correct company's website. With the increased trends towards online shopping, the online shops like Amazon, Alibaba etc. might pose an extreme danger to the marketplace share of company. The competitors are moving towards click and Recommendations of Ikeas Social And Environmental Responsibility Initiatives Case Solution shops with Gap introducing Piperline. This shift towards online markets might reduce the profits for company. In this scenario the business could think about presenting Click and Recommendations of Ikeas Social And Environmental Responsibility Initiatives Case Analysis stores. These shops with a low requirement of funds to settle would make it possible for the business to reach international markets, without ending its domestic stores. The advantages and disadvantages of option 2 are offered as follows;

Pros:

• Low investment
• Lowering competitors risk
• Access to the world markets
• Expanding consumer base
• Easy to handle
• Big Incomes
• Low Operating Expense
• Easy new market entrance

Cons:

• Danger to the market position
• Elimination of brand name Uniqueness
• Removal of the terrific shop experience.
• Threat of decline in elite sales.

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

Another alternative that the company might consider, is to expand towards the worldwide markets without closing its domestic stores that contributes to the major part of profits of the business. The advantages and disadvantages associated with Alternative 3 are provided listed below;

Pros:

• Minimizing competitors danger
• Access to the world markets
• Enlarging consumer base
• Large Revenues
• Expedition of new global markets.
• Increase in profits from worldwide markets.
• Profits diversification.
• Step towards being a strong worldwide brand.

Cons:

• Extension of concerns connected to variety.
• Distinctions in cultures could led to a failure of the brand name particularly in Asian countries.
• Low earnings at preliminary levels.
• Increase in marketing expenses to gain market share.



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