Recommendations of Reorganizing Atandt: From Vertically Integrated To Customer-Centric Organization (A) Case Analysis

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Recommendations of Reorganizing Atandt: From Vertically Integrated To Customer-Centric Organization (A) Case Study Analysis

On the basis of above internal and external analysis of the company along with the evaluation of numerous options, the company is recommended to think about alternative 3. As alternative 3 would allow the business to broaden in international markets without any reduction in its regional earnings and any wear and tear of its market position. The company could pursue alternative 1 which would enable the company to focus on potential global markets rather than the local markets but as the business is extremely reliant on the regional markets with 90% of its shops in the United States, there fore pursuing alternative 1 would result in the significant decrease in company's profits.

Aletrnative-1: Expanding International Brick and Recommendations of Reorganizing Atandt: From Vertically Integrated To Customer-Centric Organization (A) Case Analysis Stores

Growth towards global markets through opening new stores in other Europe and Asian nations with closing domestic shops is although a good choice for increasing the international existence of the company. The closing of domestic shops might highly impact the incomes of the firm as above 90% of its stores are situated domestically and closing those stores would ultimately lower the incomes of the firm. Moreover, the company has a long term market position in United States which can not be produced soon in the brand-new markets. The choice would assist the company to expand in global markets along with the removal of issues raised in its local markets related to its diversity. The pros and Cons for Alternative 1 are noted below;

Pros:

• Expedition of new international markets.
• Boost in profits from worldwide markets.
• Removal of problems connected to variety.
• Profits diversity.
• Step towards being a strong global brand name.

Cons:

• Loss of substantial revenues from the local markets.
• Increase in competition.
• Distinctions in cultures could led to a failure of the brand name especially in Asian nations.
• Low incomes at initial levels.
• Increase in marketing expenses to gain market share.

Alternative-2: Introduction of Click and Recommendations of Reorganizing Atandt: From Vertically Integrated To Customer-Centric Organization (A) Case Analysis Stores

With the increased trends towards online shopping, the online stores like Amazon, Alibaba and so on could pose an extreme threat to the market share of company. In this circumstance the business might consider presenting Click and Recommendations of Reorganizing Atandt: From Vertically Integrated To Customer-Centric Organization (A) Case Solution stores. These shops with a low requirement of funds to settle would allow the business to reach worldwide markets, without ending its domestic shops.

Pros:

• Low financial investment
• Lowering competitors hazard
• Access to the world markets
• Expanding consumer base
• Easy to manage
• Large Incomes
• Low Operating Expense
• Easy new market entrance

Cons:

• Hazard to the market position
• Removal of brand Originality
• Elimination of the fantastic store experience.
• Danger of decrease in elite sales.

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

Another choice that the company could consider, is to expand towards the international markets without closing its domestic shops that adds to the huge part of earnings of the business. The advantages and disadvantages associated with Alternative 3 are offered below;

Pros:

• Decreasing competitors hazard
• Access to the world markets
• Increasing the size of customer base
• Large Incomes
• Expedition of new global markets.
• Boost in revenue from worldwide markets.
• Income diversification.
• Step towards being a strong worldwide brand name.

Cons:

• Extension of problems related to diversity.
• Differences in cultures could resulted in a failure of the brand name especially in Asian nations.
• Low profits at initial levels.
• Increase in marketing expenses to gain market share.



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