Recommendations of Unilever Group And Ariba Towards Strategic Sourcing Case Analysis

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Recommendations of Unilever Group And Ariba Towards Strategic Sourcing Case Study Help

On the basis of above internal and external analysis of the business along with the assessment of different alternatives, the business is recommended to consider alternative 3. As alternative 3 would enable the business to broaden in international markets without any reduction in its local revenues and any degeneration of its market position. The company might pursue alternative 1 which would make it possible for the business to focus on possible international markets rather than the local markets but as the business is extremely 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 company's earnings.

Aletrnative-1: Expanding International Brick and Recommendations of Unilever Group And Ariba Towards Strategic Sourcing Case Analysis Stores

Expansion towards global markets through opening new shops in other Europe and Asian nations with closing domestic shops is although an excellent choice for increasing the worldwide presence of the business. The closing of domestic shops might highly impact the earnings of the firm as above 90% of its shops are situated locally and closing those shops would eventually decrease the revenues of the company. Additionally, the company has a long term market position in US which can not be generated soon in the new markets. The choice would assist the business to expand in international markets in addition to the removal of concerns raised in its local markets associated with its diversity. The advantages and disadvantages for Option 1 are noted below;

Pros:

• Exploration of brand-new international markets.
• Increase in earnings from international markets.
• Elimination of issues related to variety.
• Profits diversification.
• Step towards being a strong global brand name.

Cons:

• Loss of comprehensive incomes from the regional markets.
• Boost in competitors.
• Differences in cultures could caused a failure of the brand particularly in Asian countries.
• Low revenues at initial levels.
• Increase in marketing expenses to get market share.

Alternative-2: Introduction of Click and Recommendations of Unilever Group And Ariba Towards Strategic Sourcing Case Help Stores

Alternative 2 consists of the intro of online market places through producing an appropriate company's site. With the increased trends towards online shopping, the online stores like Amazon, Alibaba and so on could posture an extreme threat to the marketplace share of company. The competitors are moving towards click and Recommendations of Unilever Group And Ariba Towards Strategic Sourcing Case Help stores with Gap introducing Piperline. This shift towards online markets could minimize the earnings for business. In this situation the business might think about presenting Click and Recommendations of Unilever Group And Ariba Towards Strategic Sourcing Case Solution stores. These stores with a low requirement of funds to settle would make it possible for the business to reach worldwide markets, without ending its domestic stores. The advantages and disadvantages of alternative 2 are given as follows;

Pros:

• Low financial investment
• Lowering competitors risk
• Access to the world markets
• Expanding customer base
• Easy to handle
• Large Profits
• Low Operating Costs
• Easy brand-new market entryway

Cons:

• Risk to the market position
• Elimination of brand Uniqueness
• Removal of the excellent shop experience.
• Risk of decrease in elite sales.

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

Another option that the business could consider, is to broaden towards the global markets without closing its domestic shops that contributes to the major part of profits of the company. The pros and cons connected to Alternative 3 are provided listed below;

Pros:

• Minimizing competitors threat
• Access to the world markets
• Expanding consumer base
• Big Profits
• Exploration of new international markets.
• Increase in earnings from global markets.
• Earnings diversity.
• Step towards being a strong global brand.

Cons:

• Extension of issues associated with diversity.
• Distinctions in cultures might caused a failure of the brand especially in Asian nations.
• Low incomes at initial levels.
• Boost in marketing expenditures to gain market share.



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