Recommendations of Deutsche Telekom A Transformation Journey (A) Case Solution

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Recommendations of Deutsche Telekom A Transformation Journey (A) Case Study Analysis

On the basis of above internal and external analysis of the business along with the examination of various alternatives, the business is advised to consider alternative 3. As alternative 3 would permit the company to expand in global markets without any reduction in its regional incomes and any deterioration of its market position. The company could pursue alternative 1 which would enable the business to focus on prospective international markets rather than the local markets however as the business is highly dependent on the local markets with 90% of its stores in the US, there fore pursuing option 1 would result in the substantial decline in company's earnings.

Aletrnative-1: Expanding International Brick and Recommendations of Deutsche Telekom A Transformation Journey (A) Case Analysis Stores

Expansion towards global markets through opening new shops in other Europe and Asian countries with closing domestic shops is although a good option for increasing the international existence of the company. The closing of domestic stores might highly impact the profits of the firm as above 90% of its shops are located domestically and closing those stores would eventually reduce the revenues of the company. Moreover, the company has a long term market position in United States which can not be generated soon in the new markets. The choice would help the business to expand in international markets together with the removal of issues raised in its regional markets associated with its variety. The advantages and disadvantages for Option 1 are listed below;

Pros:

• Exploration of brand-new international markets.
• Increase in revenue from international markets.
• Elimination of issues connected to diversity.
• Earnings diversity.
• Step towards being a strong international brand.

Cons:

• Loss of extensive revenues from the local markets.
• Increase in competition.
• Distinctions in cultures might resulted in a failure of the brand name particularly in Asian nations.
• Low profits at preliminary levels.
• Increase in marketing expenditures to get market share.

Alternative-2: Introduction of Click and Recommendations of Deutsche Telekom A Transformation Journey (A) Case Analysis Stores

Alternative 2 consists of the introduction of online market locations through generating a proper business's website. With the increased trends towards online shopping, the online stores like Amazon, Alibaba etc. could position a serious risk to the marketplace share of company. The rivals are moving towards click and Recommendations of Deutsche Telekom A Transformation Journey (A) Case Help shops with Gap presenting Piperline. This shift towards online markets could lower the incomes for business. In this situation the business could consider presenting Click and Recommendations of Deutsche Telekom A Transformation Journey (A) Case Solution shops. These stores with a low requirement of funds to settle would allow the company to reach global markets, without ending its domestic stores. The advantages and disadvantages of option 2 are given as follows;

Pros:

• Low investment
• Decreasing competitors risk
• Access to the world markets
• Enlarging consumer base
• Easy to manage
• Big Earnings
• Low Operating Expense
• Easy new market entrance

Cons:

• Risk to the market position
• Removal of brand Originality
• Removal of the great shop experience.
• Danger of decline in elite sales.

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

Another alternative that the business might think about, is to expand towards the worldwide markets without closing its domestic shops that contributes to the major part of revenues of the company. The advantages and disadvantages related to Alternative 3 are provided below;

Pros:

• Reducing competition danger
• Access to the world markets
• Increasing the size of consumer base
• Large Earnings
• Expedition of brand-new global markets.
• Increase in profits from international markets.
• Income diversity.
• Action towards being a strong global brand name.

Cons:

• Extension of concerns connected to variety.
• Differences in cultures might led to a failure of the brand specifically in Asian countries.
• Low earnings at initial levels.
• Increase in marketing expenses to gain market share.



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