Recommendations of Yum! Brands Inc In China Case Solution

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Recommendations of Yum! Brands Inc In China Case Study Analysis

On the basis of above internal and external analysis of the company along with the examination of different options, the company is recommended to consider alternative 3. As alternative 3 would enable the business to expand in global markets without any reduction in its regional earnings and any wear and tear of its market position. The company might pursue alternative 1 which would make it possible for the company to focus on prospective worldwide markets rather than the local markets however as the company is extremely dependent on the regional markets with 90% of its stores in the US, there fore pursuing alternative 1 would result in the considerable decrease in business's earnings.

Aletrnative-1: Expanding International Brick and Recommendations of Yum! Brands Inc In China Case Help Stores

The company has a long term market position in United States which can not be generated quickly in the brand-new markets. The option would assist the business to broaden in international markets along with the removal of issues raised in its regional markets related to its diversity.

Pros:

• Exploration of new international markets.
• Boost in revenue from global markets.
• Removal of problems associated with diversity.
• Revenue diversification.
• Action towards being a strong worldwide brand name.

Cons:

• Loss of extensive incomes from the local markets.
• Increase in competition.
• Distinctions in cultures might led to a failure of the brand especially in Asian countries.
• Low earnings at preliminary levels.
• Boost in marketing expenditures to get market share.

Alternative-2: Introduction of Click and Recommendations of Yum! Brands Inc In China Case Help Stores

Alternative 2 includes the introduction of online market locations through producing a proper company's website. With the increased patterns towards online shopping, the online shops like Amazon, Alibaba etc. could position a severe hazard to the marketplace share of business. The rivals are moving towards click and Recommendations of Yum! Brands Inc In China Case Solution shops with Gap presenting Piperline. This shift towards online markets could lower the earnings for business. In this scenario the business might consider presenting Click and Recommendations of Yum! Brands Inc In China Case Analysis shops. These shops with a low requirement of funds to settle would make it possible for the business to reach global markets, without ending its domestic shops. The benefits and drawbacks of alternative 2 are offered as follows;

Pros:

• Low investment
• Minimizing competition hazard
• Access to the world markets
• Enlarging consumer base
• Easy to handle
• Large Earnings
• Low Operating Expense
• Easy brand-new market entrance

Cons:

• Risk to the marketplace position
• Removal of brand name Individuality
• Elimination of the great shop experience.
• Danger of decline in elite sales.

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

Another option that the business might think about, is to expand towards the global markets without closing its domestic shops that adds to the huge part of earnings of the company. The advantages and disadvantages associated with Alternative 3 are given listed below;

Pros:

• Minimizing competitors hazard
• Access to the world markets
• Increasing the size of customer base
• Big Profits
• Exploration of new international markets.
• Boost in revenue from worldwide markets.
• Profits diversification.
• Action towards being a strong worldwide brand name.

Cons:

• Extension of issues associated with variety.
• Distinctions in cultures could resulted in a failure of the brand name especially in Asian countries.
• Low incomes at initial levels.
• Increase in marketing expenditures to get market share.



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