Recommendations of Madonna Strategy In Action Case Help

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Recommendations of Madonna Strategy In Action Case Study Help

On the basis of above internal and external analysis of the business along with the assessment of numerous alternatives, the company is suggested to think about alternative 3. As alternative 3 would permit the business to expand in worldwide markets without any reduction in its local incomes and any deterioration of its market position. The business might pursue alternative 1 which would enable the business to focus on prospective worldwide markets rather than the local markets but as the company is extremely dependent on the local markets with 90% of its stores in the US, there fore pursuing alternative 1 would result in the significant decrease in company's earnings.

Aletrnative-1: Expanding International Brick and Recommendations of Madonna Strategy In Action Case Solution Stores

Expansion towards worldwide markets through opening new stores in other Europe and Asian countries with closing domestic stores is although an excellent alternative for increasing the international existence of the company. However, the closing of domestic shops might highly impact the profits of the company as above 90% of its shops lie domestically and closing those shops would ultimately decrease the incomes of the firm. Moreover, the business has a long term market position in United States which can not be produced quickly in the brand-new markets. The alternative would assist the company to expand in global markets together with the removal of issues raised in its regional markets connected to its variety. The pros and Cons for Alternative 1 are listed below;

Pros:

• Expedition of brand-new global markets.
• Boost in revenue from global markets.
• Elimination of concerns connected to diversity.
• Earnings diversity.
• Step towards being a strong global brand name.

Cons:

• Loss of extensive incomes from the local markets.
• Boost in competition.
• Differences in cultures could caused a failure of the brand name especially in Asian nations.
• Low earnings at preliminary levels.
• Boost in marketing expenses to gain market share.

Alternative-2: Introduction of Click and Recommendations of Madonna Strategy In Action Case Analysis Stores

With the increased patterns towards online shopping, the online stores like Amazon, Alibaba and so on might pose an extreme danger to the market share of company. In this circumstance the business might consider introducing Click and Recommendations of Madonna Strategy In Action 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.

Pros:

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

Cons:

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

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

Another choice that the business could think about, is to expand towards the worldwide markets without closing its domestic shops that adds to the huge part of incomes of the business. The advantages and disadvantages related to Alternative 3 are given listed below;

Pros:

• Decreasing competitors hazard
• Access to the world markets
• Enlarging customer base
• Big Incomes
• Exploration of new global markets.
• Increase in profits from international markets.
• Income diversification.
• Step towards being a strong global brand.

Cons:

• Continuation of issues connected to diversity.
• Distinctions in cultures could caused a failure of the brand name particularly in Asian nations.
• Low profits at preliminary levels.
• Increase in marketing expenses to get market share.



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