Recommendations of Tescos Globalization Strategies And Its Success In South Korea Case Solution
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Recommendations of Tescos Globalization Strategies And Its Success In South Korea Case Study Analysis
On the basis of above internal and external analysis of the business in addition to the examination of numerous alternatives, the company is recommended to think about alternative 3. As alternative 3 would permit the company to expand in international markets with no decrease in its local revenues and any degeneration of its market position. By considering Alternative 3, the business might keep its shop experience and brand name originality. It might also consider alternative 2 that might enable the business to access the markets without any prospective investment. Although, the business could pursue alternative 1 which would allow the company to concentrate on prospective worldwide markets rather than the local markets but as the company is highly based on the regional markets with 90% of its shops in the United States, there fore pursuing option 1 would result in the considerable decline in business's income. For that reason, the business is recommended to consider alternative 3.
Aletrnative-1: Expanding International Brick and Recommendations of Tescos Globalization Strategies And Its Success In South Korea Case Help Stores
Growth towards global markets through opening new stores in other Europe and Asian countries with closing domestic shops is although a great alternative for increasing the international presence of the business. The closing of domestic shops could highly affect the profits of the firm as above 90% of its stores are located domestically and closing those shops would eventually lower the revenues of the firm. The business has a long term market position in United States which can not be created soon in the brand-new markets. The alternative would help the company to expand in worldwide markets along with the removal of concerns raised in its local markets related to its diversity. The pros and Cons for Option 1 are noted below;
• Exploration of brand-new worldwide markets.
• Boost in income from international markets.
• Elimination of concerns connected to variety.
• Income diversification.
• Action towards being a strong global brand.
• Loss of extensive earnings from the regional markets.
• Increase in competitors.
• Differences in cultures could caused a failure of the brand specifically in Asian nations.
• Low incomes at initial levels.
• Increase in marketing expenses to acquire market share.
Alternative-2: Introduction of Click and Recommendations of Tescos Globalization Strategies And Its Success In South Korea Case Help Stores
Alternative 2 includes the introduction of online market locations through producing a correct business's site. With the increased trends towards online shopping, the online shops like Amazon, Alibaba and so on might posture a serious hazard to the marketplace share of business. The competitors are moving towards click and Recommendations of Tescos Globalization Strategies And Its Success In South Korea Case Solution stores with Space presenting Piperline. This shift towards online markets might reduce the revenues for company. In this circumstance the company might think about introducing Click and Recommendations of Tescos Globalization Strategies And Its Success In South Korea Case Help shops. These shops with a low requirement of funds to settle would make it possible for the company to reach global markets, without ending its domestic stores. The pros and cons of option 2 are offered as follows;
• Low investment
• Reducing competitors danger
• Access to the world markets
• Increasing the size of consumer base
• Easy to manage
• Big Earnings
• Low Operating Costs
• Easy brand-new market entryway
• Hazard to the marketplace position
• Removal of brand name Individuality
• Elimination of the fantastic shop experience.
• Danger of decrease in elite sales.
Alternative-3: Expansion towards International Markets Without closing Domestic Stores
Another alternative that the company could consider, is to expand towards the international markets without closing its domestic shops that adds to the major part of profits of the company. The benefits and drawbacks related to Alternative 3 are offered below;
• Minimizing competitors hazard
• Access to the world markets
• Expanding consumer base
• Big Incomes
• Expedition of new global markets.
• Increase in revenue from worldwide markets.
• Income diversity.
• Step towards being a strong international brand.
• Extension of concerns connected to diversity.
• Distinctions in cultures might led to a failure of the brand name specifically in Asian countries.
• Low earnings at initial levels.
• Boost in marketing expenses to get market share.
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