Recommendations of Li And Fung The Global Value Chain Configurator Case Help

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Recommendations of Li And Fung The Global Value Chain Configurator Case Study Solution

On the basis of above internal and external analysis of the company in addition to the evaluation of various alternatives, the business is advised to consider alternative 3. As alternative 3 would allow the company to expand in international markets without any reduction in its local revenues and any degeneration of its market position. By thinking about Alternative 3, the company could keep its store experience and brand uniqueness. Nevertheless, it could also think about alternative 2 that could allow the business to access the markets with no potential investment. The business might pursue alternative 1 which would allow the business to focus on possible international markets rather than the regional markets however as the company is extremely dependent on the local markets with 90% of its shops in the US, there fore pursuing option 1 would result in the significant decrease in business's revenue. Therefore, the business is advised to consider alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of Li And Fung The Global Value Chain Configurator Case Solution Stores

The company has a long term market position in US which can not be generated quickly in the brand-new markets. The alternative would assist the business to broaden in worldwide markets along with the removal of issues raised in its local markets related to its variety.

Pros:

• Exploration of new worldwide markets.
• Increase in revenue from worldwide markets.
• Removal of issues related to variety.
• Income diversification.
• Action towards being a strong global brand name.

Cons:

• Loss of substantial earnings from the regional markets.
• Boost in competition.
• Distinctions in cultures might led to a failure of the brand name specifically in Asian nations.
• Low incomes at preliminary levels.
• Boost in marketing expenses to acquire market share.

Alternative-2: Introduction of Click and Recommendations of Li And Fung The Global Value Chain Configurator Case Solution Stores

With the increased patterns towards online shopping, the online stores like Amazon, Alibaba etc. might present a severe risk to the market share of business. In this situation the business could think about introducing Click and Recommendations of Li And Fung The Global Value Chain Configurator Case Analysis shops. These stores with a low requirement of funds to settle would enable the company to reach global markets, without ending its domestic shops.

Pros:

• Low investment
• Reducing competition hazard
• Access to the world markets
• Increasing the size of consumer base
• Easy to handle
• Large Incomes
• Low Operating Costs
• Easy brand-new market entrance

Cons:

• Danger to the market position
• Elimination of brand Individuality
• Removal of the fantastic shop experience.
• Risk of decrease in elite sales.

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

Another alternative that the company might think about, is to expand towards the global markets without closing its domestic shops that contributes to the major part of profits of the company. The advantages and disadvantages associated with Alternative 3 are offered below;

Pros:

• Lowering competitors danger
• Access to the world markets
• Enlarging consumer base
• Big Earnings
• Exploration of brand-new global markets.
• Increase in revenue from international markets.
• Earnings diversity.
• Step towards being a strong worldwide brand name.

Cons:

• Continuation of problems associated with variety.
• Differences in cultures could caused a failure of the brand name especially in Asian countries.
• Low incomes at initial levels.
• Increase in marketing expenditures to gain market share.



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