Recommendations of Zopa.Com: From A Hot Idea To An Established Market Player Case Analysis

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Recommendations of Zopa.Com: From A Hot Idea To An Established Market Player Case Study Solution

On the basis of above internal and external analysis of the company along with the evaluation of numerous alternatives, the business is suggested to think about alternative 3. As alternative 3 would permit the business to broaden in international markets without any decrease in its local earnings and any wear and tear of its market position. The company might pursue alternative 1 which would allow the company to focus on potential global markets rather than the regional markets however as the company is extremely dependent on the local markets with 90% of its shops in the US, there fore pursuing option 1 would result in the substantial decline in business's income.

Aletrnative-1: Expanding International Brick and Recommendations of Zopa.Com: From A Hot Idea To An Established Market Player Case Help Stores

The company has a long term market position in United States which can not be generated soon in the new markets. The option would help the business to expand in worldwide markets along with the removal of concerns raised in its local markets related to its diversity.

Pros:

• Expedition of new international markets.
• Boost in revenue from worldwide markets.
• Elimination of problems related to diversity.
• Income diversification.
• Action towards being a strong worldwide brand name.

Cons:

• Loss of substantial incomes from the regional markets.
• Increase in competition.
• Differences in cultures might resulted in a failure of the brand particularly in Asian countries.
• Low revenues at initial levels.
• Boost in marketing expenditures to get market share.

Alternative-2: Introduction of Click and Recommendations of Zopa.Com: From A Hot Idea To An Established Market Player Case Solution Stores

With the increased patterns towards online shopping, the online shops like Amazon, Alibaba etc. might posture a severe danger to the market share of business. In this situation the company could consider presenting Click and Recommendations of Zopa.Com: From A Hot Idea To An Established Market Player Case Help shops. These shops with a low requirement of funds to settle would make it possible for the company to reach global markets, without ending its domestic stores.

Pros:

• Low financial investment
• Lowering competitors risk
• Access to the world markets
• Enlarging consumer base
• Easy to handle
• Big Earnings
• Low Operating Costs
• Easy brand-new market entryway

Cons:

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

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

Another choice that the company could think about, is to broaden towards the international markets without closing its domestic stores that adds to the huge part of incomes of the company. The advantages and disadvantages connected to Alternative 3 are given listed below;

Pros:

• Minimizing competition danger
• Access to the world markets
• Enlarging consumer base
• Big Incomes
• Expedition of brand-new worldwide markets.
• Boost in income from international markets.
• Profits diversification.
• Step towards being a strong global brand.

Cons:

• Continuation of concerns associated with variety.
• Differences in cultures might resulted in a failure of the brand name particularly in Asian countries.
• Low profits at preliminary levels.
• Boost in marketing expenses to gain market share.



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