Recommendations of Optimus Portugal: A Strategy For 3g Broadband Case Help

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Recommendations of Optimus Portugal: A Strategy For 3g Broadband Case Study Solution

On the basis of above internal and external analysis of the company along with the assessment of numerous options, the company is recommended to consider alternative 3. As alternative 3 would allow the business to broaden in global markets without any reduction in its local revenues and any degeneration of its market position. The business might pursue alternative 1 which would enable the business to focus on prospective international markets rather than the local markets however as the company is highly dependent on the local markets with 90% of its stores in the US, there fore pursuing alternative 1 would result in the substantial decrease in company's earnings.

Aletrnative-1: Expanding International Brick and Recommendations of Optimus Portugal: A Strategy For 3g Broadband Case Analysis Stores

Expansion towards international markets through opening new stores in other Europe and Asian nations with closing domestic shops is although an excellent alternative for increasing the international presence of the business. The closing of domestic stores could highly impact the earnings of the company as above 90% of its shops are located locally and closing those stores would ultimately decrease the revenues of the firm. Furthermore, the business has a long term market position in United States which can not be produced quickly in the new markets. The choice would assist the business to expand in international markets in addition to the elimination of problems raised in its regional markets associated with its variety. The benefits and drawbacks for Alternative 1 are noted below;

Pros:

• Exploration of brand-new global markets.
• Increase in earnings from global markets.
• Removal of concerns connected to diversity.
• Profits diversity.
• Action towards being a strong international brand name.

Cons:

• Loss of extensive profits from the local markets.
• Boost in competitors.
• Differences in cultures could resulted in a failure of the brand particularly in Asian countries.
• Low earnings at initial levels.
• Boost in marketing expenses to acquire market share.

Alternative-2: Introduction of Click and Recommendations of Optimus Portugal: A Strategy For 3g Broadband Case Solution Stores

Alternative 2 includes the introduction of online market places through generating a proper business's site. With the increased patterns towards online shopping, the online shops like Amazon, Alibaba etc. could position an extreme risk to the marketplace share of company. Furthermore, the competitors are shifting towards click and Recommendations of Optimus Portugal: A Strategy For 3g Broadband Case Solution shops with Space introducing Piperline. This shift towards online markets could lower the incomes for business. In this circumstance the company could think about introducing Click and Recommendations of Optimus Portugal: A Strategy For 3g Broadband 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. The pros and cons of alternative 2 are provided as follows;

Pros:

• Low financial investment
• Lowering competition threat
• Access to the world markets
• Expanding consumer base
• Easy to manage
• Big Revenues
• Low Operating Costs
• Easy brand-new market entryway

Cons:

• Risk to the marketplace position
• Removal of brand Uniqueness
• Removal of the fantastic store experience.
• Risk of decline in elite sales.

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

Another alternative that the business might consider, is to broaden towards the global markets without closing its domestic stores that contributes to the huge part of revenues of the business. The benefits and drawbacks connected to Alternative 3 are provided below;

Pros:

• Decreasing competition danger
• Access to the world markets
• Enlarging customer base
• Big Earnings
• Exploration of brand-new global markets.
• Boost in revenue from global markets.
• Earnings diversity.
• Step towards being a strong worldwide brand name.

Cons:

• Extension of problems connected to variety.
• Differences in cultures could resulted in a failure of the brand especially in Asian countries.
• Low revenues at initial levels.
• Increase in marketing expenses to acquire market share.



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