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

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

On the basis of above internal and external analysis of the business in addition to the assessment of various options, the business is recommended to think about alternative 3. As alternative 3 would permit the business to broaden in global markets without any decrease in its regional incomes and any degeneration of its market position. By thinking about Alternative 3, the business could preserve its shop experience and brand name individuality. However, it could likewise think about alternative 2 that might allow the company to access the marketplaces with no possible investment. Although, the company could pursue alternative 1 which would make it possible for the business to concentrate on possible global markets rather than the local markets however as the company is highly dependent on the regional markets with 90% of its stores in the US, there fore pursuing alternative 1 would result in the substantial decrease in business's income. The company is advised to consider alternative 3.

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

Expansion towards worldwide markets through opening new stores in other Europe and Asian countries with closing domestic shops is although an excellent alternative for increasing the worldwide existence of the business. However, the closing of domestic shops could extremely affect the revenues of the firm as above 90% of its stores lie locally and closing those shops would eventually decrease the revenues of the company. Additionally, the business has a long term market position in United States which can not be created soon in the new markets. The choice would help the business to expand in international markets in addition to the elimination of concerns raised in its regional markets related to its variety. The benefits and drawbacks for Option 1 are listed below;

Pros:

• Exploration of brand-new international markets.
• Boost in profits from global markets.
• Elimination of problems connected to variety.
• Income diversity.
• Action towards being a strong worldwide brand name.

Cons:

• Loss of extensive incomes from the regional markets.
• Increase in competition.
• Distinctions in cultures might led to a failure of the brand specifically in Asian countries.
• Low revenues at initial levels.
• Boost in marketing expenses to get market share.

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

With the increased trends towards online shopping, the online shops like Amazon, Alibaba and so on could pose a severe hazard to the market share of company. In this scenario the business might consider introducing Click and Recommendations of Deutsche Telekom: A Transformation Journey (B) Case Solution shops. These stores with a low requirement of funds to settle would make it possible for the business to reach worldwide markets, without ending its domestic stores.

Pros:

• Low investment
• Minimizing competition hazard
• Access to the world markets
• Expanding consumer base
• Easy to handle
• Large Revenues
• Low Operating Costs
• Easy new market entrance

Cons:

• Threat to the marketplace position
• Elimination of brand name Individuality
• Removal of the great store experience.
• Danger of decrease in elite sales.

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

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

Pros:

• Decreasing competitors danger
• Access to the world markets
• Increasing the size of customer base
• Big Incomes
• Expedition of new international markets.
• Boost in profits from worldwide markets.
• Income diversification.
• Step towards being a strong global brand name.

Cons:

• Extension of concerns associated with diversity.
• Differences in cultures could caused a failure of the brand particularly in Asian countries.
• Low profits at initial levels.
• Boost in marketing expenditures to get market share.



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