Recommendations of Smart Communications Inc (A) Case Solution

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Recommendations of Smart Communications Inc (A) Case Study Analysis

On the basis of above internal and external analysis of the company in addition to the examination of numerous options, the business is recommended to think about alternative 3. As alternative 3 would allow the business to broaden in international markets without any reduction in its local profits and any degeneration of its market position. By thinking about Alternative 3, the business might maintain its shop experience and brand originality. It might likewise consider alternative 2 that might permit the company to access the markets without any prospective investment. Although, the business could pursue alternative 1 which would enable the business to concentrate on potential international markets instead of the regional markets however as the business is highly depending on the local markets with 90% of its stores in the US, there fore pursuing option 1 would lead to the substantial decrease in company's income. Therefore, the company is suggested to think about alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of Smart Communications Inc (A) Case Help Stores

Growth towards worldwide markets through opening brand-new shops in other Europe and Asian nations with closing domestic shops is although an excellent alternative for increasing the worldwide existence of the business. However, the closing of domestic shops might highly impact the profits of the company as above 90% of its shops are located locally and closing those stores would eventually lower the incomes of the firm. The company has a long term market position in United States which can not be generated soon in the new markets. The alternative would help the business to broaden in worldwide markets in addition to the elimination of problems raised in its local markets associated with its variety. The advantages and disadvantages for Option 1 are listed below;

Pros:

• Exploration of new global markets.
• Increase in income from worldwide markets.
• Elimination of problems associated with diversity.
• Profits diversification.
• Action towards being a strong international brand name.

Cons:

• Loss of extensive revenues from the regional markets.
• Increase in competition.
• Differences in cultures could led to a failure of the brand name especially in Asian countries.
• Low incomes at initial levels.
• Boost in marketing expenditures to get market share.

Alternative-2: Introduction of Click and Recommendations of Smart Communications Inc (A) Case Analysis Stores

With the increased patterns towards online shopping, the online stores like Amazon, Alibaba etc. might present an extreme danger to the market share of company. In this circumstance the company might think about presenting Click and Recommendations of Smart Communications Inc (A) Case Help stores. These stores with a low requirement of funds to settle would make it possible for the company to reach worldwide markets, without ending its domestic shops.

Pros:

• Low financial investment
• Decreasing competitors risk
• 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 marketplace position
• Elimination of brand name Uniqueness
• Elimination of the fantastic shop experience.
• Threat of decrease in elite sales.

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

Another alternative that the business could consider, is to broaden towards the international markets without closing its domestic stores that contributes to the huge part of incomes of the company. The pros and cons related to Alternative 3 are provided below;

Pros:

• Lowering competition threat
• Access to the world markets
• Increasing the size of customer base
• Big Incomes
• Expedition of brand-new international markets.
• Boost in earnings from worldwide markets.
• Income diversity.
• Action towards being a strong global brand.

Cons:

• Continuation of issues connected to variety.
• Distinctions in cultures might resulted in a failure of the brand especially in Asian nations.
• Low revenues at preliminary levels.
• Boost in marketing expenses to get market share.



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