Recommendations of Sinas Growth Strategies In China Case Help

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Recommendations of Sinas Growth Strategies In China Case Study Analysis

On the basis of above internal and external analysis of the company in addition to the assessment of different options, the company is suggested to think about alternative 3. As alternative 3 would permit the company to expand in global markets with no decrease in its regional profits and any degeneration of its market position. By considering Alternative 3, the company might keep its store experience and brand name uniqueness. It could also think about alternative 2 that might allow the business to access the markets without any potential financial investment. Although, the company might pursue alternative 1 which would make it possible for the company to focus on potential global markets instead of the local markets but as the company is extremely based on the regional markets with 90% of its shops in the US, there fore pursuing option 1 would result in the significant decrease in company's income. Therefore, the company is recommended to consider alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of Sinas Growth Strategies In China Case Analysis Stores

Expansion towards global markets through opening brand-new stores in other Europe and Asian countries with closing domestic shops is although an excellent choice for increasing the global existence of the business. Nevertheless, the closing of domestic stores might extremely affect the earnings of the firm as above 90% of its stores are located locally and closing those shops would ultimately reduce the profits of the company. Furthermore, the business has a long term market position in US which can not be produced quickly in the brand-new markets. The option would help the business to broaden in international markets in addition to the removal of concerns raised in its regional markets connected to its variety. The pros and Cons for Option 1 are noted below;

Pros:

• Exploration of new worldwide markets.
• Boost in revenue from international markets.
• Removal of issues related to diversity.
• Revenue diversity.
• Action towards being a strong international brand name.

Cons:

• Loss of comprehensive profits from the regional markets.
• Increase in competitors.
• Distinctions in cultures might caused a failure of the brand name especially in Asian countries.
• Low incomes at initial levels.
• Increase in marketing expenses to get market share.

Alternative-2: Introduction of Click and Recommendations of Sinas Growth Strategies In China Case Solution Stores

With the increased patterns towards online shopping, the online stores like Amazon, Alibaba etc. might position a severe danger to the market share of business. In this circumstance the business could consider presenting Click and Recommendations of Sinas Growth Strategies In China Case Help stores. These stores with a low requirement of funds to settle would enable the business to reach global markets, without ending its domestic shops.

Pros:

• Low investment
• Lowering competition hazard
• Access to the world markets
• Increasing the size of customer base
• Easy to handle
• Big Profits
• Low Operating Costs
• Easy new market entryway

Cons:

• Risk to the market position
• Removal of brand Uniqueness
• Removal of the terrific shop experience.
• Risk of decrease in elite sales.

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

Another option that the business might think about, is to broaden towards the worldwide markets without closing its domestic stores that contributes to the major part of revenues of the business. The pros and cons connected to Alternative 3 are offered below;

Pros:

• Reducing competitors danger
• Access to the world markets
• Expanding customer base
• Big Earnings
• Exploration of new worldwide markets.
• Boost in revenue from worldwide markets.
• Earnings diversification.
• Step towards being a strong international brand name.

Cons:

• Extension of issues associated with diversity.
• Distinctions in cultures might caused a failure of the brand especially in Asian countries.
• Low profits at initial levels.
• Boost in marketing expenditures to get market share.



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