Recommendations of Withdrawal Of Credit Cover To The Uk Retail Industry: A Case On Credit Crisis Case Solution

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Recommendations of Withdrawal Of Credit Cover To The Uk Retail Industry: A Case On Credit Crisis Case Study Solution

On the basis of above internal and external analysis of the business along with the evaluation of different alternatives, the company is suggested to think about alternative 3. As alternative 3 would allow the business to broaden in global markets without any decrease in its local revenues and any degeneration of its market position. The business might pursue alternative 1 which would allow the company to focus on prospective international markets rather than the local markets however as the business is highly 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 business's earnings.

Aletrnative-1: Expanding International Brick and Recommendations of Withdrawal Of Credit Cover To The Uk Retail Industry: A Case On Credit Crisis Case Solution Stores

Growth towards international markets through opening new stores in other Europe and Asian countries with closing domestic stores is although a great alternative for increasing the international existence of the business. However, the closing of domestic shops could extremely impact the earnings of the company as above 90% of its stores lie locally and closing those shops would ultimately reduce the revenues of the firm. Additionally, the company has a long term market position in US which can not be produced soon in the brand-new markets. The option would help the business to broaden in international markets along with the removal of problems raised in its local markets connected to its variety. The advantages and disadvantages for Alternative 1 are listed below;

Pros:

• Exploration of brand-new global markets.
• Increase in profits from worldwide markets.
• Elimination of issues connected to variety.
• Revenue diversity.
• Action towards being a strong worldwide brand name.

Cons:

• Loss of substantial earnings from the regional markets.
• Boost in competitors.
• Differences in cultures could resulted in a failure of the brand name especially in Asian countries.
• Low incomes at preliminary levels.
• Increase in marketing expenditures to gain market share.

Alternative-2: Introduction of Click and Recommendations of Withdrawal Of Credit Cover To The Uk Retail Industry: A Case On Credit Crisis Case Analysis Stores

Alternative 2 consists of the intro of online market locations through producing a proper business's website. With the increased trends towards online shopping, the online shops like Amazon, Alibaba etc. could position a severe hazard to the market share of business. The competitors are moving towards click and Recommendations of Withdrawal Of Credit Cover To The Uk Retail Industry: A Case On Credit Crisis Case Analysis shops with Gap introducing Piperline. This shift towards online markets could reduce the profits for company. In this situation the business could think about introducing Click and Recommendations of Withdrawal Of Credit Cover To The Uk Retail Industry: A Case On Credit Crisis Case Solution stores. These shops with a low requirement of funds to settle would allow the company to reach international markets, without ending its domestic shops. The benefits and drawbacks of alternative 2 are given as follows;

Pros:

• Low financial investment
• Decreasing competition danger
• Access to the world markets
• Expanding customer base
• Easy to manage
• Big Profits
• Low Operating Costs
• Easy brand-new market entryway

Cons:

• Risk to the marketplace position
• Removal of brand name Uniqueness
• Elimination of the excellent shop experience.
• Threat of decrease in elite sales.

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

Another choice that the company might consider, is to broaden towards the worldwide markets without closing its domestic shops that adds to the huge part of revenues of the company. The advantages and disadvantages associated with Alternative 3 are provided below;

Pros:

• Decreasing competition danger
• Access to the world markets
• Increasing the size of consumer base
• Big Earnings
• Expedition of new global markets.
• Boost in income from global markets.
• Earnings diversification.
• Action towards being a strong worldwide brand.

Cons:

• Continuation of concerns related to diversity.
• Distinctions in cultures might caused a failure of the brand particularly in Asian nations.
• Low earnings at initial levels.
• Increase in marketing expenses to acquire market share.



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