Recommendations of Tomtoms Initial Public Offering: Dud Or Nugget Case Solution

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Recommendations of Tomtoms Initial Public Offering: Dud Or Nugget Case Study Solution

On the basis of above internal and external analysis of the company along with the evaluation of different options, the business is suggested to consider alternative 3. As alternative 3 would enable the company to expand in worldwide markets without any reduction in its local earnings and any deterioration of its market position. The company might pursue alternative 1 which would make it possible for the business to focus on possible worldwide markets rather than the local markets however as the company is highly reliant on the regional markets with 90% of its shops in the United States, there fore pursuing option 1 would result in the substantial decrease in business's income.

Aletrnative-1: Expanding International Brick and Recommendations of Tomtoms Initial Public Offering: Dud Or Nugget Case Solution Stores

The business has a long term market position in US which can not be created soon in the new markets. The option would assist the company to broaden in international markets along with the elimination of concerns raised in its local markets related to its variety.

Pros:

• Expedition of new global markets.
• Increase in revenue from worldwide markets.
• Elimination of problems associated with diversity.
• Earnings diversification.
• Step towards being a strong international brand name.

Cons:

• Loss of substantial revenues from the regional markets.
• Increase in competitors.
• Distinctions in cultures might caused 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 Tomtoms Initial Public Offering: Dud Or Nugget Case Analysis Stores

Alternative 2 consists of the introduction of online market places through creating a correct business's site. With the increased patterns towards online shopping, the online stores like Amazon, Alibaba and so on could present a serious danger to the market share of company. The competitors are shifting towards click and Recommendations of Tomtoms Initial Public Offering: Dud Or Nugget Case Analysis stores with Gap presenting Piperline. This shift towards online markets could minimize the earnings for company. In this circumstance the company could consider introducing Click and Recommendations of Tomtoms Initial Public Offering: Dud Or Nugget Case Analysis stores. These stores 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 advantages and disadvantages of option 2 are given as follows;

Pros:

• Low financial investment
• Lowering competition danger
• Access to the world markets
• Enlarging customer base
• Easy to handle
• Large Profits
• Low Operating Expense
• Easy new market entrance

Cons:

• Threat to the market position
• Removal of brand Uniqueness
• Removal 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 worldwide markets without closing its domestic shops that adds to the major part of profits of the company. The advantages and disadvantages connected to Alternative 3 are provided below;

Pros:

• Reducing competition threat
• Access to the world markets
• Expanding consumer base
• Large Earnings
• Exploration of new international markets.
• Increase in profits from international markets.
• Profits diversity.
• Step towards being a strong worldwide brand.

Cons:

• Extension of problems associated with variety.
• Distinctions in cultures could led to a failure of the brand name particularly in Asian nations.
• Low revenues at initial levels.
• Boost in marketing expenditures to get market share.



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