Recommendations of Renova Toilet Paper: Escaping The Commoditization Trap Case Help

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Recommendations of Renova Toilet Paper: Escaping The Commoditization Trap Case Study Help

On the basis of above internal and external analysis of the business together with the evaluation of different options, the company is advised to think about alternative 3. As alternative 3 would permit the business to expand in global markets without any decrease in its regional revenues and any deterioration of its market position. By thinking about Alternative 3, the business might keep its store experience and brand name originality. It could also think about alternative 2 that could permit the business to access the markets without any possible investment. The company could pursue alternative 1 which would enable the company to focus on possible global markets rather than the regional markets but as the business is extremely dependent on the local markets with 90% of its shops in the United States, there fore pursuing option 1 would result in the considerable decline in business's earnings. The company is advised to think about alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of Renova Toilet Paper: Escaping The Commoditization Trap Case Analysis Stores

The company has a long term market position in United States which can not be produced quickly in the new markets. The alternative would assist the company to expand in international markets along with the elimination of problems raised in its local markets related to its variety.

Pros:

• Expedition of new international markets.
• Boost in income from international markets.
• Removal of concerns connected to variety.
• Revenue diversity.
• Step towards being a strong international brand name.

Cons:

• Loss of substantial profits from the local markets.
• Boost in competition.
• Differences in cultures could resulted in a failure of the brand name specifically in Asian nations.
• Low earnings at preliminary levels.
• Increase in marketing expenditures to acquire market share.

Alternative-2: Introduction of Click and Recommendations of Renova Toilet Paper: Escaping The Commoditization Trap Case Analysis Stores

Alternative 2 includes the introduction of online market locations through creating an appropriate business's website. With the increased patterns towards online shopping, the online stores like Amazon, Alibaba and so on might position a severe risk to the market share of business. The competitors are moving towards click and Recommendations of Renova Toilet Paper: Escaping The Commoditization Trap Case Solution stores with Gap introducing Piperline. This shift towards online markets might decrease the earnings for company. In this circumstance the business might think about presenting Click and Recommendations of Renova Toilet Paper: Escaping The Commoditization Trap Case Solution shops. These shops with a low requirement of funds to settle would allow the business to reach worldwide markets, without ending its domestic shops. The pros and cons of alternative 2 are offered as follows;

Pros:

• Low financial investment
• Lowering competition danger
• Access to the world markets
• Enlarging consumer base
• Easy to handle
• Large Incomes
• Low Operating Expense
• Easy brand-new market entrance

Cons:

• Danger to the market position
• Elimination of brand Originality
• Removal of the excellent store experience.
• Threat of decline in elite sales.

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

Another option that the company might think about, is to expand towards the global markets without closing its domestic shops that contributes to the huge part of revenues of the business. The pros and cons related to Alternative 3 are offered below;

Pros:

• Decreasing competitors hazard
• Access to the world markets
• Enlarging consumer base
• Large Incomes
• Expedition of brand-new international markets.
• Boost in revenue from worldwide markets.
• Revenue diversity.
• Step towards being a strong worldwide brand name.

Cons:

• Extension of concerns related to diversity.
• Distinctions in cultures might led to a failure of the brand name specifically in Asian countries.
• Low revenues at preliminary levels.
• Increase in marketing expenses to acquire market share.



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