Recommendations of Tescos Steering Wheel Strategy Case Analysis

Home >> Ibs Center For Management Research >> Tescos Steering Wheel Strategy >> Recommendations

Recommendations of Tescos Steering Wheel Strategy Case Study Solution

On the basis of above internal and external analysis of the business along with the assessment of numerous options, the company is suggested to think about alternative 3. As alternative 3 would permit the company to broaden in worldwide markets without any decrease in its regional profits and any degeneration of its market position. By considering Alternative 3, the business might preserve its shop experience and brand uniqueness. It might also think about alternative 2 that might allow the company to access the markets without any possible investment. The business might pursue alternative 1 which would make it possible for the company to focus on possible global markets rather than the regional markets but as the company is extremely reliant on the local markets with 90% of its shops in the United States, there fore pursuing alternative 1 would result in the substantial decrease in business's revenue. The business is advised to think about alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of Tescos Steering Wheel Strategy Case Help Stores

Expansion towards international markets through opening new stores in other Europe and Asian countries with closing domestic shops is although a good option for increasing the worldwide existence of the company. Nevertheless, the closing of domestic shops could extremely affect the revenues of the firm as above 90% of its stores are located locally and closing those shops would ultimately lower the profits of the firm. The business has a long term market position in United States which can not be created quickly in the new markets. The option would help the company to expand in global markets together with the elimination of issues raised in its local markets associated with its variety. The benefits and drawbacks for Option 1 are noted below;

Pros:

• Expedition of brand-new worldwide markets.
• Increase in profits from international markets.
• Elimination of issues related to variety.
• Profits diversification.
• Step towards being a strong global brand.

Cons:

• Loss of comprehensive incomes from the local markets.
• Increase in competition.
• Distinctions in cultures could led to a failure of the brand specifically in Asian countries.
• Low incomes at preliminary levels.
• Increase in marketing expenditures to gain market share.

Alternative-2: Introduction of Click and Recommendations of Tescos Steering Wheel Strategy Case Help Stores

With the increased trends towards online shopping, the online stores like Amazon, Alibaba etc. could posture a severe risk to the market share of company. In this scenario the business could consider introducing Click and Recommendations of Tescos Steering Wheel Strategy Case Analysis shops. These stores with a low requirement of funds to settle would make it possible for the business to reach global markets, without ending its domestic shops.

Pros:

• Low investment
• Reducing competitors risk
• Access to the world markets
• Increasing the size of consumer base
• Easy to handle
• Big Incomes
• Low Operating Costs
• Easy new market entrance

Cons:

• Risk to the market position
• Removal of brand name Individuality
• Removal of the fantastic shop experience.
• Risk of decline in elite sales.

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

Another option that the business might consider, is to expand towards the international markets without closing its domestic stores that adds to the major part of profits of the business. The advantages and disadvantages related to Alternative 3 are given below;

Pros:

• Minimizing competition risk
• Access to the world markets
• Enlarging consumer base
• Large Revenues
• Expedition of new international markets.
• Boost in income from global markets.
• Income diversification.
• Action towards being a strong worldwide brand name.

Cons:

• Extension of issues connected to diversity.
• Differences in cultures could resulted in a failure of the brand particularly in Asian countries.
• Low earnings at initial levels.
• Boost in marketing expenses to acquire 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.