Recommendations of Ellerines: The Tale Of A Retail-Credit Business Model In An Emerging Market Case Analysis

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Recommendations of Ellerines: The Tale Of A Retail-Credit Business Model In An Emerging Market Case Study Solution

On the basis of above internal and external analysis of the company together with the evaluation of numerous options, the business is suggested to consider alternative 3. As alternative 3 would permit the business to broaden in international markets without any reduction in its regional incomes and any degeneration of its market position. By considering Alternative 3, the business might preserve its store experience and brand name uniqueness. It could likewise consider alternative 2 that could enable the business to access the markets without any prospective investment. Although, the business might pursue alternative 1 which would allow the business to concentrate on prospective global markets rather than the regional markets but as the company is highly based on the local markets with 90% of its stores in the United States, there fore pursuing option 1 would lead to the considerable decrease in company's earnings. For that reason, the company is suggested to think about alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of Ellerines: The Tale Of A Retail-Credit Business Model In An Emerging Market Case Solution Stores

Growth towards worldwide markets through opening brand-new stores in other Europe and Asian nations with closing domestic shops is although an excellent alternative for increasing the international existence of the business. The closing of domestic shops could highly affect the earnings of the company as above 90% of its shops are situated domestically and closing those stores would eventually minimize the profits of the firm. Furthermore, the business has a long term market position in US which can not be created quickly in the brand-new markets. The choice would help the company to broaden in worldwide markets in addition to the removal of issues raised in its local markets associated with its variety. The pros and Cons for Option 1 are noted below;

Pros:

• Exploration of new worldwide markets.
• Increase in profits from international markets.
• Elimination of problems connected to diversity.
• Profits diversity.
• Step towards being a strong global brand.

Cons:

• Loss of comprehensive profits from the local markets.
• Boost in competitors.
• Differences in cultures could led to a failure of the brand especially in Asian nations.
• Low earnings at initial levels.
• Increase in marketing expenditures to get market share.

Alternative-2: Introduction of Click and Recommendations of Ellerines: The Tale Of A Retail-Credit Business Model In An Emerging Market Case Analysis Stores

With the increased patterns towards online shopping, the online stores like Amazon, Alibaba and so on might pose a severe hazard to the market share of business. In this scenario the business could think about presenting Click and Recommendations of Ellerines: The Tale Of A Retail-Credit Business Model In An Emerging Market Case Help stores. These stores 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 competitors danger
• Access to the world markets
• Increasing the size of consumer base
• Easy to handle
• Big Profits
• Low Operating Expense
• Easy new market entryway

Cons:

• Danger to the market position
• Elimination of brand name Originality
• Removal 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 company could think about, is to expand towards the global markets without closing its domestic stores that adds to the huge part of incomes of the company. The advantages and disadvantages associated with Alternative 3 are offered listed below;

Pros:

• Lowering competitors danger
• Access to the world markets
• Expanding customer base
• Big Profits
• Exploration of brand-new global markets.
• Boost in earnings from global markets.
• Profits diversification.
• Step towards being a strong international brand.

Cons:

• Continuation of problems related to variety.
• Distinctions in cultures might caused a failure of the brand specifically in Asian nations.
• Low profits at initial levels.
• Increase in marketing expenditures to get market share.



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