Recommendations of From Pitchfork To Fork: Vertical Integration At Otrada Group (Russia) Case Help

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Recommendations of From Pitchfork To Fork: Vertical Integration At Otrada Group (Russia) Case Study Solution

On the basis of above internal and external analysis of the company along with the evaluation of numerous options, the business is advised to consider alternative 3. As alternative 3 would enable the business to expand in international markets with no decrease in its regional earnings and any wear and tear of its market position. By considering Alternative 3, the business could preserve its store experience and brand uniqueness. It might likewise consider alternative 2 that might permit the company to access the markets without any potential financial investment. The business could pursue alternative 1 which would allow the company to focus on potential global markets rather than the local markets but as the business is extremely dependent on the regional markets with 90% of its stores in the United States, there fore pursuing alternative 1 would result in the considerable decline in business's earnings. Therefore, the company is suggested to think about alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of From Pitchfork To Fork: Vertical Integration At Otrada Group (Russia) Case Help Stores

Expansion towards international markets through opening brand-new stores in other Europe and Asian nations with closing domestic shops is although an excellent alternative for increasing the worldwide existence of the business. The closing of domestic stores could highly affect the revenues of the company as above 90% of its stores are located domestically and closing those stores would eventually decrease the incomes of the firm. Additionally, the business has a long term market position in US which can not be generated quickly in the brand-new markets. The alternative would assist the business to expand in international markets together with the elimination of issues raised in its local markets related to its variety. The pros and Cons for Alternative 1 are listed below;

Pros:

• Exploration of new worldwide markets.
• Boost in income from worldwide markets.
• Elimination of concerns connected to variety.
• Earnings diversity.
• Action towards being a strong international brand name.

Cons:

• Loss of comprehensive incomes from the regional markets.
• Boost in competition.
• Distinctions in cultures could caused a failure of the brand name particularly in Asian nations.
• Low incomes at preliminary levels.
• Increase in marketing expenditures to gain market share.

Alternative-2: Introduction of Click and Recommendations of From Pitchfork To Fork: Vertical Integration At Otrada Group (Russia) Case Solution Stores

Alternative 2 includes the introduction of online market locations through creating an appropriate company's site. With the increased patterns towards online shopping, the online shops like Amazon, Alibaba and so on might position a serious risk to the marketplace share of company. The rivals are shifting towards click and Recommendations of From Pitchfork To Fork: Vertical Integration At Otrada Group (Russia) Case Solution stores with Space introducing Piperline. This shift towards online markets could lower the profits for company. In this situation the company could consider introducing Click and Recommendations of From Pitchfork To Fork: Vertical Integration At Otrada Group (Russia) Case Solution shops. These stores with a low requirement of funds to settle would enable the company to reach international markets, without ending its domestic stores. The pros and cons of alternative 2 are offered as follows;

Pros:

• Low financial investment
• Lowering competitors threat
• Access to the world markets
• Increasing the size of consumer base
• Easy to handle
• Large Incomes
• Low Operating Costs
• Easy brand-new market entryway

Cons:

• Risk to the marketplace position
• Removal of brand name Originality
• Removal of the excellent store experience.
• Risk of decline in elite sales.

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

Another choice that the business might think about, is to broaden towards the global markets without closing its domestic shops that contributes to the huge part of earnings of the company. The advantages and disadvantages related to Alternative 3 are provided below;

Pros:

• Reducing competitors risk
• Access to the world markets
• Increasing the size of customer base
• Large Earnings
• Expedition of brand-new international markets.
• Boost in profits from worldwide markets.
• Revenue diversity.
• Step towards being a strong worldwide brand.

Cons:

• Extension of concerns associated with diversity.
• Differences in cultures might resulted in a failure of the brand name particularly in Asian nations.
• Low incomes at initial levels.
• Increase in marketing expenses to get market share.



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