Recommendations of Tescos Steering Wheel: A Tool For Strategic Value Creation And Business Transformation Case Solution

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Recommendations of Tescos Steering Wheel: A Tool For Strategic Value Creation And Business Transformation Case Study Solution

RecommendationsOn the basis of above internal and external analysis of the business in addition to the assessment of various options, the company is advised to consider alternative 3. As alternative 3 would permit the company to expand in international markets with no reduction in its local revenues and any deterioration of its market position. By thinking about Alternative 3, the business could maintain its shop experience and brand name originality. It might also consider alternative 2 that might allow the business to access the markets without any prospective investment. Although, the business could pursue alternative 1 which would make it possible for the business to focus on possible worldwide markets rather than the regional markets however as the company is extremely depending on the regional markets with 90% of its shops in the United States, there fore pursuing alternative 1 would result in the substantial decline in company's profits. The company is suggested to consider alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of Tescos Steering Wheel: A Tool For Strategic Value Creation And Business Transformation Case Analysis Stores

International SegmentsThe business has a long term market position in United States which can not be generated quickly in the brand-new markets. The alternative would assist the company to expand in global markets along with the removal of concerns raised in its regional markets related to its diversity.

Pros:

• Exploration of new worldwide markets.
• Boost in revenue from global markets.
• Elimination of problems connected to diversity.
• Profits diversification.
• Step towards being a strong worldwide brand name.

Cons:

• Loss of extensive earnings from the regional markets.
• Increase in competition.
• Differences in cultures might resulted in a failure of the brand especially in Asian nations.
• Low incomes at initial levels.
• Boost in marketing expenses to acquire market share.

Alternative-2: Introduction of Click and Recommendations of Tescos Steering Wheel: A Tool For Strategic Value Creation And Business Transformation Case Solution Stores

With the increased patterns towards online shopping, the online shops like Amazon, Alibaba and so on could position an extreme danger to the market share of business. In this scenario the business could think about introducing Click and Recommendations of Tescos Steering Wheel: A Tool For Strategic Value Creation And Business Transformation Case Solution shops. These shops with a low requirement of funds to settle would enable the business to reach global markets, without ending its domestic shops.

Pros:

• Low financial investment
• Lowering competitors threat
• Access to the world markets
• Expanding customer base
• Easy to manage
• Big Earnings
• Low Operating Expense
• Easy new market entrance

Cons:

• Danger to the market position
• Elimination of brand name Uniqueness
• Removal of the great shop experience.
• Danger of decrease in elite sales.

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

Another choice that the business might consider, is to expand towards the international markets without closing its domestic shops that contributes to the major part of revenues of the company. The advantages and disadvantages related to Alternative 3 are provided below;

Pros:

• Minimizing competitors threat
• Access to the world markets
• Enlarging consumer base
• Large Incomes
• Expedition of new international markets.
• Increase in profits from global markets.
• Income diversity.
• Action towards being a strong global brand name.

Cons:

• Continuation of issues associated with variety.
• Differences in cultures could resulted in a failure of the brand name specifically in Asian nations.
• Low incomes at initial levels.
• Increase in marketing expenses to get market share.



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