Recommendations of Jpmorgan Chase - Ibm: The Outsourcing Journey Case Analysis

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Recommendations of Jpmorgan Chase - Ibm: The Outsourcing Journey Case Study Analysis

RecommendationsOn the basis of above internal and external analysis of the business together with the evaluation of different options, the company is suggested to consider alternative 3. As alternative 3 would allow the company to broaden in worldwide markets with no reduction in its local profits and any degeneration of its market position. By thinking about Alternative 3, the company could preserve its shop experience and brand uniqueness. It could also consider alternative 2 that might permit the business to access the markets without any prospective investment. Although, the company might pursue alternative 1 which would make it possible for the company to focus on potential international markets instead of the regional markets however as the business is extremely depending on the local markets with 90% of its stores in the United States, there fore pursuing option 1 would result in the significant decline in company's income. For that reason, the business is suggested to consider alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of Jpmorgan Chase - Ibm: The Outsourcing Journey Case Solution Stores

International SegmentsGrowth towards worldwide markets through opening brand-new stores in other Europe and Asian nations with closing domestic stores is although an excellent alternative for increasing the global presence of the company. The closing of domestic stores could highly impact the earnings of the firm as above 90% of its stores are located domestically and closing those shops would eventually reduce the profits of the firm. Moreover, the company has a long term market position in US which can not be produced soon in the brand-new markets. The option would help the business to expand in international markets in addition to the removal of problems raised in its local markets related to its variety. The benefits and drawbacks for Alternative 1 are listed below;

Pros:

• Expedition of new worldwide markets.
• Increase in earnings from global markets.
• Removal of issues associated with variety.
• Income diversity.
• Action towards being a strong international brand name.

Cons:

• Loss of substantial earnings from the regional markets.
• Increase in competition.
• Distinctions in cultures could resulted in a failure of the brand particularly in Asian nations.
• Low earnings at initial levels.
• Increase in marketing expenditures to gain market share.

Alternative-2: Introduction of Click and Recommendations of Jpmorgan Chase - Ibm: The Outsourcing Journey Case Analysis Stores

With the increased trends towards online shopping, the online stores like Amazon, Alibaba etc. could pose a serious threat to the market share of company. In this situation the company could consider introducing Click and Recommendations of Jpmorgan Chase - Ibm: The Outsourcing Journey Case Analysis stores. These shops with a low requirement of funds to settle would allow the company to reach international markets, without ending its domestic stores.

Pros:

• Low financial investment
• Decreasing competition danger
• Access to the world markets
• Increasing the size of consumer base
• Easy to handle
• Large Incomes
• Low Operating Expense
• Easy brand-new market entryway

Cons:

• Danger to the market position
• Removal of brand Uniqueness
• Elimination of the great store experience.
• Danger of decrease 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 major part of revenues of the company. The benefits and drawbacks connected to Alternative 3 are given below;

Pros:

• Decreasing competition risk
• Access to the world markets
• Expanding customer base
• Large Earnings
• Expedition of new worldwide markets.
• Increase in income from global markets.
• Earnings diversity.
• Action towards being a strong international brand.

Cons:

• Continuation of problems related to variety.
• Differences in cultures might resulted in a failure of the brand specifically in Asian countries.
• Low incomes at preliminary levels.
• Boost in marketing expenditures to acquire market share.



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