Recommendations of Larry Ellison: The Source Of Oracles Wisdom Case Solution

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Recommendations of Larry Ellison: The Source Of Oracles Wisdom Case Study Analysis

On the basis of above internal and external analysis of the company along with the evaluation of numerous options, the business is recommended to think about alternative 3. As alternative 3 would allow the business to broaden in worldwide markets without any reduction in its regional revenues and any degeneration of its market position. The company might pursue alternative 1 which would make it possible for the company to focus on prospective worldwide markets rather than the local markets but as the business is extremely dependent on the local markets with 90% of its stores in the US, there fore pursuing option 1 would result in the substantial decrease in business's profits.

Aletrnative-1: Expanding International Brick and Recommendations of Larry Ellison: The Source Of Oracles Wisdom Case Solution Stores

Expansion towards international markets through opening brand-new shops in other Europe and Asian countries with closing domestic shops is although an excellent choice for increasing the international presence of the business. Nevertheless, the closing of domestic shops might highly impact the incomes of the company as above 90% of its stores are located domestically and closing those stores would eventually reduce the incomes of the firm. The business has a long term market position in United States which can not be generated quickly in the new markets. The alternative would help the company to expand in worldwide markets together with the removal of concerns raised in its local markets connected to its diversity. The pros and Cons for Alternative 1 are listed below;

Pros:

• Expedition of new international markets.
• Boost in revenue from global markets.
• Elimination of issues related to diversity.
• Earnings diversification.
• Step towards being a strong worldwide brand.

Cons:

• Loss of comprehensive profits from the regional markets.
• Increase in competitors.
• Differences in cultures could led to a failure of the brand name specifically in Asian nations.
• Low earnings at preliminary levels.
• Boost in marketing expenditures to get market share.

Alternative-2: Introduction of Click and Recommendations of Larry Ellison: The Source Of Oracles Wisdom Case Help Stores

Alternative 2 consists of the introduction of online market locations through creating a proper business's website. With the increased patterns towards online shopping, the online stores like Amazon, Alibaba etc. might pose a severe danger to the market share of company. Moreover, the rivals are shifting towards click and Recommendations of Larry Ellison: The Source Of Oracles Wisdom Case Analysis stores with Gap presenting Piperline. This shift towards online markets might decrease the incomes for business. In this situation the company might consider introducing Click and Recommendations of Larry Ellison: The Source Of Oracles Wisdom Case Solution stores. These shops with a low requirement of funds to settle would enable the business to reach worldwide markets, without ending its domestic shops. The pros and cons of option 2 are provided as follows;

Pros:

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

Cons:

• Danger to the market position
• Elimination of brand Uniqueness
• Removal of the great store experience.
• Threat of decrease in elite sales.

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

Another option that the business might consider, is to broaden towards the worldwide markets without closing its domestic shops that contributes to the huge part of profits of the company. The pros and cons connected to Alternative 3 are given below;

Pros:

• Lowering competition hazard
• Access to the world markets
• Expanding customer base
• Big Revenues
• Exploration of new global markets.
• Boost in revenue from worldwide markets.
• Earnings diversification.
• Action towards being a strong worldwide brand.

Cons:

• Extension of problems connected to variety.
• Distinctions in cultures could caused a failure of the brand name particularly in Asian nations.
• Low incomes at preliminary levels.
• Boost in marketing expenses to acquire market share.



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