Recommendations of The Chinese Tainted Milk Scandal Case Analysis

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Recommendations of The Chinese Tainted Milk Scandal Case Study Solution

On the basis of above internal and external analysis of the company along with the examination of different alternatives, the company is recommended to consider alternative 3. As alternative 3 would allow the company to expand in worldwide markets with no decrease in its local profits and any deterioration of its market position. By thinking about Alternative 3, the business might preserve its store experience and brand originality. Nevertheless, it might also think about alternative 2 that could enable the company to access the markets without any prospective investment. The business could pursue alternative 1 which would enable the business to focus on prospective worldwide markets rather than the regional markets however as the business is extremely reliant on the regional markets with 90% of its shops in the United States, there fore pursuing alternative 1 would result in the substantial decrease in company's income. The company is advised to think about alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of The Chinese Tainted Milk Scandal Case Help Stores

The business has a long term market position in US which can not be created quickly in the new markets. The alternative would assist the company to broaden in global markets along with the removal of concerns raised in its regional markets related to its variety.

Pros:

• Exploration of new global markets.
• Increase in profits from worldwide markets.
• Elimination of problems related to diversity.
• Earnings diversification.
• Action towards being a strong global brand.

Cons:

• Loss of comprehensive revenues from the local markets.
• Boost in competition.
• Distinctions in cultures might led to a failure of the brand name specifically in Asian nations.
• Low revenues at preliminary levels.
• Boost in marketing expenses to get market share.

Alternative-2: Introduction of Click and Recommendations of The Chinese Tainted Milk Scandal Case Solution Stores

With the increased trends towards online shopping, the online stores like Amazon, Alibaba etc. might present a severe danger to the market share of business. In this situation the business might consider introducing Click and Recommendations of The Chinese Tainted Milk Scandal Case Analysis shops. These shops with a low requirement of funds to settle would enable the business to reach international markets, without ending its domestic stores.

Pros:

• Low financial investment
• Minimizing competition threat
• Access to the world markets
• Expanding consumer base
• Easy to manage
• Large Earnings
• Low Operating Costs
• Easy new market entrance

Cons:

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

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

Another choice that the business might consider, is to broaden towards the global markets without closing its domestic stores that adds to the major part of profits of the company. The advantages and disadvantages connected to Alternative 3 are provided listed below;

Pros:

• Minimizing competitors hazard
• Access to the world markets
• Expanding consumer base
• Big Revenues
• Expedition of new international markets.
• Increase in earnings from global markets.
• Earnings diversity.
• Step towards being a strong international brand.

Cons:

• Continuation of issues related to variety.
• Distinctions in cultures might caused a failure of the brand specifically in Asian countries.
• Low earnings at initial levels.
• Increase in marketing expenditures to gain market share.



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