Recommendations of Johnson And Johnson: Tylenol Controversies Case Analysis

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Recommendations of Johnson And Johnson: Tylenol Controversies Case Study Solution

RecommendationsOn the basis of above internal and external analysis of the company along with the examination of various alternatives, the business is suggested to think about alternative 3. As alternative 3 would permit the company to expand in global markets without any decrease in its local earnings and any wear and tear of its market position. The company might pursue alternative 1 which would enable the company to focus on potential international markets rather than the regional markets however as the company is extremely dependent on the regional markets with 90% of its stores in the US, there fore pursuing option 1 would result in the substantial decline in business's earnings.

Aletrnative-1: Expanding International Brick and Recommendations of Johnson And Johnson: Tylenol Controversies Case Analysis Stores

International SegmentsExpansion towards global markets through opening brand-new stores in other Europe and Asian countries with closing domestic shops is although a good choice for increasing the global existence of the company. However, the closing of domestic stores might extremely affect the revenues of the firm as above 90% of its stores are located locally and closing those stores would ultimately minimize the profits of the firm. Additionally, the company has a long term market position in US which can not be generated quickly in the brand-new markets. The choice would help the business to expand in worldwide markets in addition to the elimination of issues raised in its regional markets connected to its diversity. The pros and Cons for Option 1 are noted below;

Pros:

• Exploration of brand-new international markets.
• Boost in revenue from international markets.
• Elimination of concerns connected to diversity.
• Revenue diversification.
• Step towards being a strong international brand name.

Cons:

• Loss of comprehensive incomes from the local markets.
• Boost in competition.
• Distinctions in cultures could caused a failure of the brand name specifically in Asian nations.
• Low profits at preliminary levels.
• Boost in marketing expenditures to gain market share.

Alternative-2: Introduction of Click and Recommendations of Johnson And Johnson: Tylenol Controversies Case Help Stores

With the increased patterns towards online shopping, the online stores like Amazon, Alibaba etc. might position a severe hazard to the market share of business. In this circumstance the company could think about presenting Click and Recommendations of Johnson And Johnson: Tylenol Controversies Case Help stores. These shops with a low requirement of funds to settle would make it possible for the company to reach international markets, without ending its domestic shops.

Pros:

• Low financial investment
• Reducing competition danger
• Access to the world markets
• Enlarging customer base
• Easy to handle
• Large Profits
• Low Operating Expense
• Easy new market entrance

Cons:

• Danger to the marketplace position
• Elimination of brand name Uniqueness
• Elimination of the excellent store experience.
• Risk of decline in elite sales.

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

Another choice that the business might think about, is to expand towards the international markets without closing its domestic stores that contributes to the huge part of incomes of the business. The advantages and disadvantages connected to Alternative 3 are provided listed below;

Pros:

• Minimizing competitors risk
• Access to the world markets
• Expanding consumer base
• Large Earnings
• Expedition of new global markets.
• Increase in income from worldwide markets.
• Income diversity.
• Step towards being a strong international brand name.

Cons:

• Continuation of problems connected to diversity.
• Distinctions in cultures could caused a failure of the brand name specifically in Asian nations.
• Low incomes at preliminary levels.
• Increase in marketing expenses to get market share.



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