Recommendations of Lenovos Globalization Strategies Case Help

Home >> Ibs Center For Management Research >> Lenovos Globalization Strategies >> Recommendations

Recommendations of Lenovos Globalization Strategies Case Study Analysis

On the basis of above internal and external analysis of the company along with the examination of various alternatives, the company is recommended to think about alternative 3. As alternative 3 would allow the business to broaden in global markets with no decrease in its regional revenues and any deterioration of its market position. By considering Alternative 3, the company could preserve its store experience and brand individuality. It might likewise consider alternative 2 that could permit the company to access the markets without any potential financial investment. Although, the company could pursue alternative 1 which would allow the company to concentrate on potential global markets instead of the local markets but as the business is extremely depending on the local markets with 90% of its stores in the US, there fore pursuing alternative 1 would result in the significant decrease in company's income. For that reason, the company is advised to think about alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of Lenovos Globalization Strategies Case Solution Stores

Growth towards international markets through opening brand-new shops in other Europe and Asian countries with closing domestic shops is although a great alternative for increasing the worldwide presence of the business. Nevertheless, the closing of domestic shops might extremely affect the revenues of the company as above 90% of its shops are located domestically and closing those shops would ultimately lower the earnings of the company. The business has a long term market position in US which can not be created soon in the new markets. The alternative would help the business to broaden in global markets together with the removal of concerns raised in its regional markets connected to its diversity. The advantages and disadvantages for Alternative 1 are listed below;

Pros:

• Exploration of new global markets.
• Boost in earnings from worldwide markets.
• Removal of concerns connected to diversity.
• Earnings diversification.
• Action towards being a strong international brand name.

Cons:

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

Alternative-2: Introduction of Click and Recommendations of Lenovos Globalization Strategies Case Analysis Stores

Alternative 2 includes the introduction of online market locations through creating an appropriate business's site. With the increased patterns towards online shopping, the online shops like Amazon, Alibaba and so on might present a serious risk to the marketplace share of company. The rivals are moving towards click and Recommendations of Lenovos Globalization Strategies Case Help shops with Space presenting Piperline. This shift towards online markets might decrease the earnings for business. In this situation the company could consider introducing Click and Recommendations of Lenovos Globalization Strategies Case Help shops. 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 stores. The advantages and disadvantages of option 2 are offered as follows;

Pros:

• Low financial investment
• Minimizing competition risk
• Access to the world markets
• Enlarging customer base
• Easy to manage
• Big Earnings
• Low Operating Expense
• Easy new market entryway

Cons:

• Threat to the marketplace position
• Elimination of brand Individuality
• Removal of the terrific store experience.
• Threat of decrease in elite sales.

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

Another alternative that the business might consider, is to expand towards the international markets without closing its domestic stores that adds to the major part of incomes of the company. The pros and cons associated with Alternative 3 are given below;

Pros:

• Lowering competitors danger
• Access to the world markets
• Expanding customer base
• Large Revenues
• Expedition of brand-new worldwide markets.
• Boost in income from international markets.
• Income diversity.
• Step towards being a strong worldwide brand name.

Cons:

• Continuation of issues associated with diversity.
• Differences in cultures could led to a failure of the brand particularly in Asian countries.
• Low earnings at preliminary levels.
• Increase in marketing expenses to acquire market share.



This is sample work and not applicable to real case study. Please place the order on the website to get your own originally done case solution.