Recommendations of Mckinseys Knowledge Management Practices Case Solution

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Recommendations of Mckinseys Knowledge Management Practices Case Study Help

On the basis of above internal and external analysis of the company along with the assessment of various alternatives, the business is recommended to think about alternative 3. As alternative 3 would enable the company to expand in worldwide markets without any decrease in its local incomes and any wear and tear of its market position. The company could pursue alternative 1 which would make it possible for the business to focus on prospective international markets rather than the local markets however as the business is highly dependent on the regional markets with 90% of its shops in the US, there fore pursuing alternative 1 would result in the substantial decrease in company's profits.

Aletrnative-1: Expanding International Brick and Recommendations of Mckinseys Knowledge Management Practices Case Help Stores

Expansion towards international markets through opening new stores in other Europe and Asian countries with closing domestic stores is although an excellent option for increasing the global existence of the business. However, the closing of domestic stores might extremely impact the earnings of the company as above 90% of its stores lie domestically and closing those shops would eventually minimize the revenues of the company. Moreover, the company has a long term market position in US which can not be generated quickly in the brand-new markets. The alternative would help the business to broaden in worldwide markets along with the elimination of problems raised in its local markets connected to its diversity. The benefits and drawbacks for Alternative 1 are noted below;

Pros:

• Expedition of brand-new global markets.
• Increase in revenue from worldwide markets.
• Elimination of issues related to diversity.
• Profits diversity.
• Step towards being a strong worldwide brand.

Cons:

• Loss of comprehensive incomes from the regional markets.
• Increase in competitors.
• Distinctions in cultures might caused a failure of the brand name especially in Asian nations.
• Low incomes at preliminary levels.
• Increase in marketing expenditures to acquire market share.

Alternative-2: Introduction of Click and Recommendations of Mckinseys Knowledge Management Practices Case Help Stores

With the increased patterns towards online shopping, the online stores like Amazon, Alibaba and so on could present a severe hazard to the market share of business. In this scenario the business could think about presenting Click and Recommendations of Mckinseys Knowledge Management Practices Case Help stores. These stores with a low requirement of funds to settle would enable the company to reach international markets, without ending its domestic shops.

Pros:

• Low investment
• Lowering competitors risk
• Access to the world markets
• Increasing the size of consumer base
• Easy to handle
• Large Revenues
• Low Operating Costs
• Easy new market entryway

Cons:

• Danger to the market position
• Removal of brand Uniqueness
• Removal of the fantastic store experience.
• Danger of decline in elite sales.

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

Another choice that the business might think about, is to expand towards the international markets without closing its domestic stores that contributes to the major part of profits of the company. The benefits and drawbacks connected to Alternative 3 are provided listed below;

Pros:

• Reducing competition risk
• Access to the world markets
• Enlarging consumer base
• Large Earnings
• Exploration of new worldwide markets.
• Boost in profits from worldwide markets.
• Revenue diversity.
• Step towards being a strong international brand.

Cons:

• Extension of problems connected to diversity.
• Differences in cultures might resulted in a failure of the brand name particularly in Asian countries.
• Low revenues at preliminary levels.
• Increase in marketing expenditures to acquire market share.



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