Recommendations of Rehabilitating Daiei A Japanese Retailer In Trouble Case Analysis

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Recommendations of Rehabilitating Daiei A Japanese Retailer In Trouble Case Study Solution

On the basis of above internal and external analysis of the business along with the assessment of different options, the business is recommended to consider alternative 3. As alternative 3 would allow the business to broaden in worldwide markets without any decrease in its local incomes and any wear and tear of its market position. The business might pursue alternative 1 which would make it possible for the company to focus on possible global markets rather than the regional markets however 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 income.

Aletrnative-1: Expanding International Brick and Recommendations of Rehabilitating Daiei A Japanese Retailer In Trouble Case Solution Stores

The company has a long term market position in US which can not be generated quickly in the new markets. The choice would help the company to broaden in worldwide markets along with the removal of concerns raised in its regional markets related to its diversity.

Pros:

• Exploration of new global markets.
• Increase in profits from global markets.
• Removal of problems related to diversity.
• Earnings diversification.
• Step towards being a strong global brand.

Cons:

• Loss of extensive revenues from the local markets.
• Increase in competitors.
• Distinctions in cultures might led to a failure of the brand specifically in Asian countries.
• Low profits at preliminary levels.
• Boost in marketing expenses to gain market share.

Alternative-2: Introduction of Click and Recommendations of Rehabilitating Daiei A Japanese Retailer In Trouble Case Analysis Stores

With the increased patterns towards online shopping, the online shops like Amazon, Alibaba etc. might present a severe threat to the market share of business. In this situation the business could consider presenting Click and Recommendations of Rehabilitating Daiei A Japanese Retailer In Trouble Case Help stores. These shops with a low requirement of funds to settle would allow the company to reach international markets, without ending its domestic shops.

Pros:

• Low financial investment
• Lowering competitors hazard
• Access to the world markets
• Expanding consumer base
• Easy to manage
• Big Incomes
• Low Operating Costs
• Easy brand-new market entryway

Cons:

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

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

Another option that the company might consider, is to broaden towards the global markets without closing its domestic shops that adds to the huge part of incomes of the business. The benefits and drawbacks connected to Alternative 3 are given below;

Pros:

• Minimizing competition hazard
• Access to the world markets
• Expanding customer base
• Big Profits
• Exploration of new global markets.
• Increase in income from global markets.
• Earnings diversity.
• Step towards being a strong international brand name.

Cons:

• Extension of concerns associated with variety.
• Differences in cultures might resulted in a failure of the brand name especially in Asian nations.
• Low earnings at preliminary levels.
• Increase in marketing expenses to acquire market share.



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