Recommendations of Sumantra Ghoshal A Visionary Management Guru Case Analysis

Home >> Ibs Center For Management Research >> Sumantra Ghoshal A Visionary Management Guru >> Recommendations

Recommendations of Sumantra Ghoshal A Visionary Management Guru Case Study Analysis

On the basis of above internal and external analysis of the business along with the examination of numerous alternatives, the business is recommended to consider alternative 3. As alternative 3 would permit the business to expand in international markets with no decrease in its regional profits and any wear and tear of its market position. By considering Alternative 3, the business might preserve its store experience and brand individuality. It could likewise think about alternative 2 that might enable the company to access the markets without any possible investment. Although, the business could pursue alternative 1 which would enable the business to focus on prospective global markets rather than the regional markets but as the business is highly depending on the local markets with 90% of its stores in the US, there fore pursuing option 1 would result in the significant decline in business's income. Therefore, the business is recommended to think about alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of Sumantra Ghoshal A Visionary Management Guru Case Analysis Stores

Expansion towards worldwide markets through opening new shops in other Europe and Asian nations with closing domestic shops is although an excellent alternative for increasing the worldwide existence of the business. The closing of domestic shops might highly affect the profits of the company as above 90% of its shops are situated locally and closing those shops would ultimately reduce the incomes of the firm. Moreover, the company has a long term market position in United States which can not be generated soon in the brand-new markets. The option would help the company to broaden in global markets along with the elimination of concerns raised in its local markets connected to its variety. The benefits and drawbacks for Alternative 1 are listed below;

Pros:

• Exploration of brand-new global markets.
• Boost in earnings from global markets.
• Elimination of problems associated with variety.
• Profits diversity.
• Step towards being a strong global brand name.

Cons:

• Loss of extensive earnings from the local markets.
• Increase in competitors.
• Distinctions in cultures might resulted in a failure of the brand particularly in Asian nations.
• Low profits at preliminary levels.
• Boost in marketing expenditures to acquire market share.

Alternative-2: Introduction of Click and Recommendations of Sumantra Ghoshal A Visionary Management Guru Case Help Stores

Alternative 2 includes the intro of online market places through generating a correct company's website. With the increased trends towards online shopping, the online stores like Amazon, Alibaba etc. could posture an extreme danger to the marketplace share of company. Additionally, the rivals are moving towards click and Recommendations of Sumantra Ghoshal A Visionary Management Guru Case Solution shops with Gap introducing Piperline. This shift towards online markets might minimize the incomes for company. In this scenario the company could think about presenting Click and Recommendations of Sumantra Ghoshal A Visionary Management Guru 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 stores. The pros and cons of option 2 are provided as follows;

Pros:

• Low investment
• Decreasing competitors danger
• Access to the world markets
• Enlarging customer base
• Easy to manage
• Large Revenues
• Low Operating Costs
• Easy brand-new market entrance

Cons:

• Hazard to the marketplace position
• Elimination of brand name Originality
• Elimination of the fantastic store experience.
• Risk of decline in elite sales.

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

Another option that the business could think about, is to broaden towards the worldwide markets without closing its domestic stores that contributes to the major part of earnings of the business. The benefits and drawbacks related to Alternative 3 are given below;

Pros:

• Reducing competitors risk
• Access to the world markets
• Expanding customer base
• Big Incomes
• Exploration of brand-new international markets.
• Boost in profits from international markets.
• Earnings diversity.
• Action towards being a strong global brand name.

Cons:

• Continuation of concerns related to variety.
• Differences in cultures could led to a failure of the brand name particularly in Asian nations.
• Low profits at initial levels.
• Increase in marketing expenditures to gain market share.



This is sample work and not applicable to real case study. Please place the order on the website to get your own originally done case solution.