Recommendations of Li And Fung: The Global Value Chain Configurator Case Analysis

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

On the basis of above internal and external analysis of the company together with the examination of different options, the company is recommended to think about alternative 3. As alternative 3 would allow the business to expand in international markets without any decrease in its local earnings and any deterioration of its market position. By thinking about Alternative 3, the business could keep its shop experience and brand uniqueness. It might likewise think about alternative 2 that might permit the company to access the markets without any possible financial investment. The company might pursue alternative 1 which would allow the business to focus on prospective international markets rather than the regional markets however as the company is highly dependent on the regional markets with 90% of its stores in the United States, there fore pursuing option 1 would result in the substantial decline in company's revenue. The company 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

Expansion towards global markets through opening new shops in other Europe and Asian nations with closing domestic shops is although a good option for increasing the global existence of the business. The closing of domestic stores could extremely affect the incomes of the firm as above 90% of its stores are located domestically and closing those stores would eventually lower the incomes of the company. Furthermore, the business has a long term market position in US which can not be generated soon in the brand-new markets. The alternative would help the business to broaden in international markets in addition to the removal of problems raised in its local markets related to its variety. The advantages and disadvantages for Alternative 1 are listed below;

Pros:

• Expedition of brand-new worldwide markets.
• Boost in earnings from worldwide markets.
• Removal of issues connected to diversity.
• Profits diversification.
• Step towards being a strong international brand name.

Cons:

• Loss of extensive profits from the regional markets.
• Increase in competition.
• Distinctions in cultures could caused a failure of the brand name particularly in Asian countries.
• Low profits at preliminary levels.
• Increase in marketing expenditures to get market share.

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

Alternative 2 consists of the introduction of online market locations through generating a proper company's website. With the increased patterns towards online shopping, the online stores like Amazon, Alibaba and so on might present a severe hazard to the market share of company. The competitors are moving towards click and Recommendations of Li And Fung: The Global Value Chain Configurator Case Analysis shops with Space introducing Piperline. This shift towards online markets might decrease the earnings for company. In this situation the company might consider 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 allow the company to reach international markets, without ending its domestic shops. The advantages and disadvantages of alternative 2 are given as follows;

Pros:

• Low investment
• Minimizing competition risk
• Access to the world markets
• Increasing the size of customer base
• Easy to handle
• Big Incomes
• Low Operating Costs
• Easy new market entryway

Cons:

• Threat to the marketplace position
• Elimination of brand Individuality
• Elimination of the excellent shop experience.
• Threat of decrease in elite sales.

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

Another choice that the company could think about, is to broaden towards the global markets without closing its domestic shops that contributes to the huge part of profits of the company. The pros and cons related to Alternative 3 are offered below;

Pros:

• Lowering competitors threat
• Access to the world markets
• Expanding customer base
• Large Revenues
• Expedition of new global markets.
• Boost in profits from worldwide markets.
• Revenue diversification.
• Action towards being a strong international brand name.

Cons:

• Continuation of issues related to diversity.
• Distinctions in cultures might led to a failure of the brand name particularly in Asian nations.
• Low revenues at preliminary levels.
• Increase in marketing expenses to gain market share.



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