Recommendations of Nespresso What Next Case Analysis

Home >> London Business School >> Nespresso What Next >> Recommendations

Recommendations of Nespresso What Next Case Study Analysis

On the basis of above internal and external analysis of the company in addition to the assessment of numerous options, the business is advised to consider alternative 3. As alternative 3 would allow the business to expand in global markets without any reduction in its local revenues and any degeneration of its market position. By thinking about Alternative 3, the business could maintain its store experience and brand originality. Nevertheless, it might also consider alternative 2 that might enable the company to access the marketplaces without any prospective investment. Although, the business could pursue alternative 1 which would make it possible for the company to concentrate on possible global markets instead of the local markets but as the business is extremely depending on the local markets with 90% of its shops in the United States, there fore pursuing alternative 1 would lead to the substantial decline in business's earnings. The business is suggested to think about alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of Nespresso What Next Case Analysis Stores

Growth towards global markets through opening new shops in other Europe and Asian countries with closing domestic stores is although an excellent choice for increasing the global presence of the company. Nevertheless, the closing of domestic shops could highly impact the profits of the firm as above 90% of its stores lie locally and closing those stores would ultimately lower the earnings of the firm. Additionally, the business has a long term market position in United States which can not be generated quickly in the brand-new markets. The alternative would help the business to broaden in global markets together with the elimination of issues raised in its local markets connected to its diversity. The benefits and drawbacks for Alternative 1 are listed below;

Pros:

• Expedition of new global markets.
• Increase in income from global markets.
• Removal of concerns connected to diversity.
• Revenue diversity.
• Step towards being a strong worldwide brand.

Cons:

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

Alternative-2: Introduction of Click and Recommendations of Nespresso What Next Case Analysis Stores

With the increased trends towards online shopping, the online shops like Amazon, Alibaba etc. could position a serious hazard to the market share of business. In this situation the company might consider presenting Click and Recommendations of Nespresso What Next Case Analysis shops. These shops with a low requirement of funds to settle would make it possible for the company to reach worldwide markets, without ending its domestic stores.

Pros:

• Low financial investment
• Minimizing competition hazard
• Access to the world markets
• Enlarging consumer base
• Easy to manage
• Big Profits
• Low Operating Expense
• Easy brand-new market entryway

Cons:

• Danger to the marketplace position
• Removal of brand Uniqueness
• Elimination of the fantastic 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 huge part of revenues of the business. The advantages and disadvantages related to Alternative 3 are provided listed below;

Pros:

• Lowering competitors hazard
• Access to the world markets
• Expanding consumer base
• Big Profits
• Expedition of brand-new global markets.
• Increase in profits from global markets.
• Earnings diversification.
• Action towards being a strong worldwide brand.

Cons:

• Extension of problems associated with variety.
• Differences in cultures could caused a failure of the brand name especially in Asian nations.
• Low profits at preliminary levels.
• Increase in marketing expenditures to gain market share.



This is sample work and not applicable to real case study. Please place the order on the website to get your own originally done case solution.