Recommendations of Madonna: Strategy In Action Case Help

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Recommendations of Madonna: Strategy In Action Case Study Analysis

On the basis of above internal and external analysis of the company along with the examination of various options, the business is suggested to think about alternative 3. As alternative 3 would enable the business to expand in international markets without any decrease in its regional incomes and any deterioration of its market position. The company might pursue alternative 1 which would make it possible for the business to focus on potential global markets rather than the local markets but as the business is highly dependent on the local markets with 90% of its shops in the United States, there fore pursuing alternative 1 would result in the significant decline in business's revenue.

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

Growth towards worldwide markets through opening new stores in other Europe and Asian nations with closing domestic stores is although a good choice for increasing the global existence of the business. The closing of domestic shops could highly impact the profits of the firm as above 90% of its stores are situated domestically and closing those stores would ultimately minimize the earnings of the firm. The business has a long term market position in US which can not be created soon in the brand-new markets. The alternative would assist the company to expand in international markets along with the elimination of concerns raised in its local markets connected to its diversity. The advantages and disadvantages for Alternative 1 are listed below;

Pros:

• Exploration of brand-new global markets.
• Increase in profits from international markets.
• Elimination of issues related to diversity.
• Income diversity.
• Action towards being a strong international brand name.

Cons:

• Loss of substantial earnings from the regional markets.
• Increase in competition.
• Distinctions in cultures might resulted in a failure of the brand specifically in Asian countries.
• Low revenues at preliminary levels.
• Boost in marketing expenditures to get market share.

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

With the increased trends towards online shopping, the online shops like Amazon, Alibaba etc. might pose a serious hazard to the market share of company. In this scenario the company might consider introducing Click and Recommendations of Madonna: Strategy In Action Case Help shops. These shops with a low requirement of funds to settle would enable the company to reach global markets, without ending its domestic stores.

Pros:

• Low investment
• Lowering competition hazard
• Access to the world markets
• Expanding consumer base
• Easy to manage
• Large Revenues
• Low Operating Expense
• Easy brand-new market entryway

Cons:

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

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

Another option that the company could think about, is to expand towards the worldwide markets without closing its domestic shops that contributes to the major part of profits of the business. The benefits and drawbacks connected to Alternative 3 are offered below;

Pros:

• Decreasing competitors hazard
• Access to the world markets
• Increasing the size of consumer base
• Large Profits
• Exploration of new worldwide markets.
• Boost in profits from international markets.
• Profits diversity.
• Step towards being a strong international brand name.

Cons:

• Extension of problems related to diversity.
• 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.



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