Recommendations of Strategic Innovation At The Base Of The Pyramid Case Solution

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Recommendations of Strategic Innovation At The Base Of The Pyramid Case Study Solution

On the basis of above internal and external analysis of the business in addition to the assessment of various options, the business is recommended to consider alternative 3. As alternative 3 would permit the business to broaden in global markets with no reduction in its regional profits and any deterioration of its market position. By considering Alternative 3, the business might maintain its store experience and brand name originality. It might likewise consider alternative 2 that could allow the business to access the markets without any prospective financial investment. The company could pursue alternative 1 which would allow the company to focus on possible international markets rather than the regional markets however as the company is extremely dependent on the local markets with 90% of its stores in the United States, there fore pursuing alternative 1 would result in the considerable decline in company's revenue. The business is suggested to consider alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of Strategic Innovation At The Base Of The Pyramid Case Analysis Stores

Expansion towards global markets through opening new stores in other Europe and Asian countries with closing domestic stores is although a good alternative for increasing the international existence of the company. Nevertheless, the closing of domestic shops might extremely impact the earnings of the firm as above 90% of its shops are located locally and closing those shops would eventually reduce the revenues of the company. The business has a long term market position in United States which can not be generated soon in the brand-new markets. The option would help the business to broaden in worldwide markets together with the elimination of concerns raised in its local markets associated with its diversity. The benefits and drawbacks for Option 1 are listed below;

Pros:

• Expedition of brand-new international markets.
• Increase in revenue from international markets.
• Removal of concerns connected to diversity.
• Earnings diversity.
• Action towards being a strong global brand.

Cons:

• Loss of comprehensive revenues from the regional markets.
• Boost in competitors.
• Distinctions in cultures might resulted in a failure of the brand name specifically in Asian countries.
• Low incomes at initial levels.
• Boost in marketing expenditures to get market share.

Alternative-2: Introduction of Click and Recommendations of Strategic Innovation At The Base Of The Pyramid Case Help Stores

With the increased patterns towards online shopping, the online shops like Amazon, Alibaba etc. might present a severe risk to the market share of business. In this circumstance the business could think about introducing Click and Recommendations of Strategic Innovation At The Base Of The Pyramid Case Help shops. These stores with a low requirement of funds to settle would make it possible for the company to reach international markets, without ending its domestic stores.

Pros:

• Low financial investment
• Minimizing competition danger
• Access to the world markets
• Expanding consumer base
• Easy to handle
• Big Revenues
• Low Operating Expense
• Easy brand-new market entrance

Cons:

• Danger to the market position
• Elimination of brand Uniqueness
• Elimination of the great shop 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 adds to the huge part of revenues of the business. The advantages and disadvantages connected to Alternative 3 are offered listed below;

Pros:

• Lowering competition hazard
• Access to the world markets
• Expanding consumer base
• Large Earnings
• Exploration of brand-new global markets.
• Increase in earnings from global markets.
• Income diversity.
• Action towards being a strong international brand.

Cons:

• Extension of problems related to variety.
• Differences in cultures might led to a failure of the brand name specifically in Asian countries.
• Low earnings at preliminary levels.
• Increase in marketing expenditures to gain market share.



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