Recommendations of Sam Walton Entrepreneur Of The 20th Century Case Analysis

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Recommendations of Sam Walton Entrepreneur Of The 20th Century Case Study Analysis

On the basis of above internal and external analysis of the company along with the evaluation of different alternatives, the business is suggested to think about alternative 3. As alternative 3 would enable the business to expand in global markets without any reduction in its local earnings and any deterioration of its market position. The company might pursue alternative 1 which would make it possible for the company to focus on prospective global markets rather than the local markets however as the company is highly reliant on the regional markets with 90% of its stores in the United States, there fore pursuing option 1 would result in the considerable decrease in business's revenue.

Aletrnative-1: Expanding International Brick and Recommendations of Sam Walton Entrepreneur Of The 20th Century Case Solution Stores

Growth towards worldwide markets through opening brand-new shops in other Europe and Asian countries with closing domestic shops is although a good alternative for increasing the international existence of the company. The closing of domestic stores could highly impact the incomes of the company as above 90% of its shops are located domestically and closing those shops would eventually minimize the earnings of the company. The company has a long term market position in US which can not be generated soon in the brand-new markets. The option would assist the business to broaden in worldwide markets in addition to the elimination of problems raised in its local markets associated with its diversity. The pros and Cons for Alternative 1 are listed below;

Pros:

• Expedition of brand-new worldwide markets.
• Boost in income from global markets.
• Removal of concerns connected to diversity.
• Income diversity.
• Action towards being a strong global brand.

Cons:

• Loss of comprehensive earnings from the local markets.
• Increase in competition.
• Distinctions in cultures could caused a failure of the brand specifically in Asian nations.
• Low earnings at initial levels.
• Boost in marketing expenditures to get market share.

Alternative-2: Introduction of Click and Recommendations of Sam Walton Entrepreneur Of The 20th Century Case Help Stores

With the increased trends towards online shopping, the online stores like Amazon, Alibaba etc. could posture a serious danger to the market share of business. In this scenario the company could think about presenting Click and Recommendations of Sam Walton Entrepreneur Of The 20th Century Case Analysis stores. These shops with a low requirement of funds to settle would enable the company to reach global markets, without ending its domestic shops.

Pros:

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

Cons:

• Threat to the market position
• Removal of brand Uniqueness
• Elimination of the excellent store experience.
• Risk of decline in elite sales.

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

Another alternative that the company might consider, is to expand towards the worldwide markets without closing its domestic stores that adds to the huge part of revenues of the business. The advantages and disadvantages related to Alternative 3 are given listed below;

Pros:

• Decreasing competitors risk
• Access to the world markets
• Increasing the size of consumer base
• Large Earnings
• Exploration of new worldwide markets.
• Boost in revenue from global markets.
• Earnings diversity.
• Step towards being a strong worldwide brand.

Cons:

• Extension of problems associated with diversity.
• Differences in cultures might resulted in a failure of the brand name particularly in Asian countries.
• Low profits at preliminary levels.
• Increase in marketing expenses to gain market share.



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