Recommendations of Telstra Corporation Reorganizing Strategic Business Units Case Analysis

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Recommendations of Telstra Corporation Reorganizing Strategic Business Units Case Study Solution

On the basis of above internal and external analysis of the business along with the evaluation of various alternatives, the company is recommended to consider alternative 3. As alternative 3 would enable the company to broaden in global markets without any decrease in its regional revenues and any degeneration of its market position. The company could pursue alternative 1 which would allow the company to focus on possible international markets rather than the regional markets however as the business is highly dependent on the regional markets with 90% of its stores in the US, there fore pursuing option 1 would result in the considerable decline in company's earnings.

Aletrnative-1: Expanding International Brick and Recommendations of Telstra Corporation Reorganizing Strategic Business Units Case Solution Stores

The business has a long term market position in United States which can not be created quickly in the new markets. The choice would help the company to broaden in international markets along with the elimination of issues raised in its regional markets related to its variety.

Pros:

• Exploration of new international markets.
• Boost in revenue from worldwide markets.
• Elimination of problems associated with diversity.
• Earnings diversification.
• Step towards being a strong global brand.

Cons:

• Loss of comprehensive revenues from the local markets.
• Increase in competition.
• Distinctions in cultures could led to a failure of the brand name particularly in Asian countries.
• Low incomes at initial levels.
• Boost in marketing expenditures to get market share.

Alternative-2: Introduction of Click and Recommendations of Telstra Corporation Reorganizing Strategic Business Units Case Help Stores

Alternative 2 includes the intro of online market places through producing a correct business's site. With the increased patterns towards online shopping, the online shops like Amazon, Alibaba etc. might posture an extreme danger to the market share of company. Additionally, the competitors are shifting towards click and Recommendations of Telstra Corporation Reorganizing Strategic Business Units Case Solution stores with Space introducing Piperline. This shift towards online markets could minimize the profits for business. In this circumstance the company might think about introducing Click and Recommendations of Telstra Corporation Reorganizing Strategic Business Units Case Analysis stores. These stores with a low requirement of funds to settle would enable the company to reach international markets, without ending its domestic stores. The advantages and disadvantages of alternative 2 are offered as follows;

Pros:

• Low financial investment
• Lowering competition risk
• Access to the world markets
• Enlarging customer base
• Easy to handle
• Big Revenues
• Low Operating Expense
• Easy brand-new market entrance

Cons:

• Risk to the marketplace position
• Elimination of brand name Individuality
• Elimination of the great shop experience.
• Threat of decline in elite sales.

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

Another option that the business could consider, is to broaden towards the international markets without closing its domestic stores that contributes to the major part of revenues of the business. The advantages and disadvantages associated with Alternative 3 are provided below;

Pros:

• Minimizing competition danger
• Access to the world markets
• Increasing the size of consumer base
• Large Incomes
• Expedition of brand-new global markets.
• Increase in revenue from global markets.
• Revenue diversity.
• Step towards being a strong global brand.

Cons:

• Extension of problems connected to variety.
• Differences in cultures might resulted in a failure of the brand especially in Asian nations.
• Low revenues at preliminary levels.
• Increase in marketing expenditures to acquire market share.



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