Recommendations of Storefriendly Self Storage: Franchising For Growth Case Analysis

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Recommendations of Storefriendly Self Storage: Franchising For Growth Case Study Help

On the basis of above internal and external analysis of the company along with the examination of different alternatives, the company is advised to think about alternative 3. As alternative 3 would permit the company to broaden in international markets without any decrease in its local profits and any wear and tear of its market position. The company could pursue alternative 1 which would make it possible for the business to focus on possible international markets rather than the regional markets however as the company is highly dependent on the regional markets with 90% of its stores in the United States, there fore pursuing alternative 1 would result in the considerable decrease in company's revenue.

Aletrnative-1: Expanding International Brick and Recommendations of Storefriendly Self Storage: Franchising For Growth Case Solution Stores

Growth towards global markets through opening new shops in other Europe and Asian countries with closing domestic shops is although an excellent choice for increasing the international existence of the business. The closing of domestic shops might extremely impact the profits of the company as above 90% of its shops are located locally and closing those stores would eventually reduce the profits of the company. Furthermore, the company has a long term market position in United States which can not be produced soon in the new markets. The option would help the company to broaden in worldwide markets together with the removal of problems raised in its regional markets related to its variety. The advantages and disadvantages for Option 1 are listed below;

Pros:

• Exploration of brand-new international markets.
• Boost in income from international markets.
• Elimination of concerns associated with diversity.
• Profits diversity.
• Step towards being a strong worldwide brand.

Cons:

• Loss of substantial profits from the regional markets.
• Increase in competitors.
• Distinctions in cultures might led to a failure of the brand name especially in Asian nations.
• Low profits at initial levels.
• Increase in marketing expenditures to gain market share.

Alternative-2: Introduction of Click and Recommendations of Storefriendly Self Storage: Franchising For Growth Case Analysis Stores

With the increased patterns towards online shopping, the online shops like Amazon, Alibaba and so on might pose an extreme threat to the market share of company. In this situation the business could think about introducing Click and Recommendations of Storefriendly Self Storage: Franchising For Growth Case Analysis shops. These stores with a low requirement of funds to settle would allow the business to reach global markets, without ending its domestic shops.

Pros:

• Low investment
• Lowering competition threat
• Access to the world markets
• Enlarging customer base
• Easy to manage
• Big Incomes
• Low Operating Expense
• Easy new market entrance

Cons:

• Threat to the marketplace position
• Elimination of brand name Individuality
• Elimination of the great store experience.
• Threat 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 expand towards the global markets without closing its domestic shops that contributes to the huge part of incomes of the business. The benefits and drawbacks related to Alternative 3 are provided below;

Pros:

• Decreasing competitors hazard
• Access to the world markets
• Enlarging consumer base
• Large Profits
• Exploration of brand-new global markets.
• Increase in profits from international markets.
• Earnings diversification.
• Step towards being a strong global brand name.

Cons:

• Extension of issues connected to variety.
• Distinctions in cultures might caused a failure of the brand name particularly in Asian nations.
• Low revenues at preliminary levels.
• Boost in marketing expenditures to acquire market share.



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