Recommendations of Sumantra Ghoshal: A Visionary Management Guru Case Analysis
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Recommendations of Sumantra Ghoshal: A Visionary Management Guru Case Study Solution
On the basis of above internal and external analysis of the business along with the assessment of different options, the business is advised to consider alternative 3. As alternative 3 would permit the business to expand in global markets without any decrease in its regional earnings and any wear and tear of its market position. The company could pursue alternative 1 which would make it possible for the company to focus on potential worldwide markets rather than the regional markets however as the business is extremely dependent on the local markets with 90% of its stores in the United States, there fore pursuing alternative 1 would result in the substantial decline in company's profits.
Aletrnative-1: Expanding International Brick and Recommendations of Sumantra Ghoshal: A Visionary Management Guru Case Analysis Stores
Growth towards worldwide markets through opening brand-new shops in other Europe and Asian nations with closing domestic stores is although an excellent alternative for increasing the global presence of the business. Nevertheless, the closing of domestic shops might extremely impact the incomes of the company as above 90% of its stores are located domestically and closing those stores would ultimately reduce the incomes of the firm. The company has a long term market position in US which can not be produced soon in the new markets. The alternative would help the business to broaden in global markets together with the elimination of issues raised in its regional markets related to its variety. The pros and Cons for Alternative 1 are noted below;
Pros:
• Exploration of new global markets.
• Boost in revenue from international markets.
• Removal of concerns related to variety.
• Income diversification.
• Action towards being a strong worldwide brand.
Cons:
• Loss of comprehensive earnings from the regional markets.
• Increase in competition.
• Differences in cultures could resulted in a failure of the brand name specifically in Asian nations.
• Low revenues at initial levels.
• Increase in marketing expenditures to acquire market share.
Alternative-2: Introduction of Click and Recommendations of Sumantra Ghoshal: A Visionary Management Guru Case Solution Stores
With the increased trends towards online shopping, the online shops like Amazon, Alibaba and so on might position an extreme danger to the market share of business. In this situation the company might 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 make it possible for the company to reach worldwide markets, without ending its domestic shops.
Pros:
• Low financial investment
• Reducing competitors danger
• Access to the world markets
• Increasing the size of consumer base
• Easy to handle
• Large Earnings
• Low Operating Expense
• Easy new market entryway
Cons:
• Risk to the market position
• Removal of brand name Uniqueness
• Elimination of the great shop experience.
• Risk of decline in elite sales.
Alternative-3: Expansion towards International Markets Without closing Domestic Stores
Another alternative that the company might think about, is to expand towards the worldwide markets without closing its domestic stores that contributes to the huge part of earnings of the company. The pros and cons connected to Alternative 3 are provided listed below;
Pros:
• Decreasing competition hazard
• Access to the world markets
• Increasing the size of customer base
• Large Profits
• Expedition of new international markets.
• Increase in revenue from worldwide markets.
• Profits diversification.
• Action towards being a strong worldwide brand name.
Cons:
• Extension of problems connected to variety.
• Distinctions in cultures could caused a failure of the brand especially in Asian countries.
• Low incomes at preliminary levels.
• Boost in marketing expenses to get market share.
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