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 Help

RecommendationsOn the basis of above internal and external analysis of the business along with the examination of numerous alternatives, the business is suggested to consider alternative 3. As alternative 3 would permit the company to broaden in global markets without any decrease in its local incomes and any wear and tear of its market position. By thinking about Alternative 3, the business might preserve its shop experience and brand originality. Nevertheless, it could also consider alternative 2 that could allow the company to access the markets without any potential investment. Although, the company could pursue alternative 1 which would make it possible for the company to concentrate on possible international markets instead of the regional markets but as the company is extremely dependent on the local markets with 90% of its stores in the United States, there fore pursuing option 1 would result in the considerable decline in business's revenue. The company is advised to think about alternative 3.

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

International SegmentsExpansion towards global markets through opening new shops in other Europe and Asian countries with closing domestic shops is although an excellent choice for increasing the global presence of the company. However, the closing of domestic stores might extremely affect the earnings of the firm as above 90% of its stores lie domestically and closing those stores would ultimately minimize the earnings of the firm. Moreover, the company has a long term market position in United States which can not be created quickly in the new markets. The option would help the business to broaden in worldwide markets along with the removal of concerns raised in its regional markets related to its variety. The benefits and drawbacks for Option 1 are listed below;

Pros:

• Exploration of new international markets.
• Boost in profits from global markets.
• Removal of concerns related to variety.
• Income diversity.
• Step towards being a strong global brand name.

Cons:

• Loss of comprehensive incomes from the local markets.
• Increase in competition.
• Differences in cultures might resulted in a failure of the brand especially in Asian countries.
• Low earnings at initial levels.
• Boost in marketing expenditures to acquire market share.

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

With the increased patterns towards online shopping, the online shops like Amazon, Alibaba and so on might pose a severe danger to the market share of business. In this circumstance the business might think about introducing Click and Recommendations of Rehabilitating Daiei: A Japanese Retailer In Trouble Case Analysis shops. These shops with a low requirement of funds to settle would make it possible for the business to reach international markets, without ending its domestic shops.

Pros:

• Low investment
• Decreasing competition threat
• Access to the world markets
• Increasing the size of consumer base
• Easy to handle
• Large Profits
• Low Operating Costs
• Easy new market entrance

Cons:

• Hazard to the marketplace position
• Removal of brand name Uniqueness
• Elimination of the terrific shop experience.
• Danger of decrease in elite sales.

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

Another alternative that the company could consider, is to expand towards the international markets without closing its domestic stores that contributes to the huge part of profits of the company. The benefits and drawbacks associated with Alternative 3 are provided below;

Pros:

• Minimizing competition risk
• Access to the world markets
• Enlarging consumer base
• Large Earnings
• Exploration of new international markets.
• Increase in earnings from global markets.
• Revenue diversification.
• Step towards being a strong international brand name.

Cons:

• Extension of concerns connected to variety.
• Distinctions in cultures might resulted in a failure of the brand name especially in Asian countries.
• Low earnings at initial levels.
• Increase in marketing expenditures to acquire market share.



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