Recommendations of Elite - The Digital Mattress Company Case Solution

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Recommendations of Elite - The Digital Mattress Company Case Study Solution

On the basis of above internal and external analysis of the company together with the examination of different alternatives, the company is advised to think about alternative 3. As alternative 3 would permit the business to expand in worldwide markets without any decrease in its local profits and any deterioration of its market position. By thinking about Alternative 3, the company might keep its shop experience and brand name individuality. Nevertheless, it could also think about alternative 2 that could allow the business to access the markets without any possible investment. The company could pursue alternative 1 which would make it possible for the company to focus on prospective global markets rather than the regional markets but as the business is highly reliant on the regional markets with 90% of its stores in the US, there fore pursuing option 1 would result in the significant decrease in company's earnings. For that reason, the company is advised to think about alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of Elite - The Digital Mattress Company Case Solution Stores

Expansion towards global markets through opening new stores in other Europe and Asian countries with closing domestic stores is although a good option for increasing the international existence of the business. Nevertheless, the closing of domestic shops could extremely impact the profits of the company as above 90% of its stores lie locally and closing those stores would ultimately lower the profits of the firm. The company has a long term market position in US which can not be created soon in the brand-new markets. The option would assist the business to expand in international markets together with the removal of problems raised in its regional markets connected to its diversity. The pros and Cons for Alternative 1 are listed below;

Pros:

• Expedition of new international markets.
• Increase in earnings from global markets.
• Removal of issues related to variety.
• Income diversification.
• Action towards being a strong worldwide brand.

Cons:

• Loss of comprehensive profits from the local markets.
• Increase in competition.
• Differences in cultures might resulted in a failure of the brand name particularly in Asian nations.
• Low profits at initial levels.
• Boost in marketing expenses to get market share.

Alternative-2: Introduction of Click and Recommendations of Elite - The Digital Mattress Company Case Help Stores

With the increased patterns towards online shopping, the online stores like Amazon, Alibaba and so on could position a serious risk to the market share of company. In this circumstance the business could think about introducing Click and Recommendations of Elite - The Digital Mattress Company Case Help shops. These shops with a low requirement of funds to settle would enable the business to reach global markets, without ending its domestic stores.

Pros:

• Low financial investment
• Lowering competition threat
• Access to the world markets
• Enlarging consumer base
• Easy to manage
• Large Profits
• Low Operating Costs
• Easy brand-new market entrance

Cons:

• Risk to the market position
• Removal of brand Originality
• Elimination of the terrific shop experience.
• Risk of decrease in elite sales.

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

Another alternative that the business might consider, is to broaden towards the global markets without closing its domestic shops that contributes to the huge part of revenues of the company. The benefits and drawbacks associated with Alternative 3 are given below;

Pros:

• Minimizing competitors risk
• Access to the world markets
• Expanding customer base
• Large Profits
• Exploration of brand-new international markets.
• Increase in income from international markets.
• Income diversity.
• Action towards being a strong worldwide brand name.

Cons:

• Continuation of problems related to variety.
• Differences in cultures might led to a failure of the brand name especially in Asian nations.
• Low incomes at preliminary levels.
• Boost in marketing expenditures to acquire market share.



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