Recommendations of Aligning Supply Chain Strategies With Product Uncertainties Case Analysis

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Recommendations of Aligning Supply Chain Strategies With Product Uncertainties Case Study Solution

On the basis of above internal and external analysis of the company along with the assessment of different alternatives, the company is recommended to think about alternative 3. As alternative 3 would allow the company to broaden in global markets without any reduction in its local revenues and any deterioration of its market position. The business might pursue alternative 1 which would enable the company to focus on prospective international markets rather than the regional markets but as the company is extremely reliant on the regional markets with 90% of its shops in the United States, there fore pursuing option 1 would result in the considerable decrease in business's profits.

Aletrnative-1: Expanding International Brick and Recommendations of Aligning Supply Chain Strategies With Product Uncertainties Case Analysis Stores

Expansion towards international markets through opening new shops in other Europe and Asian nations with closing domestic shops is although an excellent option for increasing the global existence of the company. The closing of domestic shops could highly affect the earnings of the company as above 90% of its stores are located locally and closing those stores would ultimately lower the revenues of the firm. Moreover, the company has a long term market position in United States which can not be created soon in the new markets. The alternative would help the business to expand in worldwide markets along with the removal of concerns raised in its local markets associated with its variety. The pros and Cons for Option 1 are listed below;

Pros:

• Expedition of new international markets.
• Boost in profits from worldwide markets.
• Removal of problems related to variety.
• Income diversity.
• Action towards being a strong worldwide brand.

Cons:

• Loss of comprehensive incomes from the local markets.
• Increase in competitors.
• Differences in cultures might caused a failure of the brand name specifically in Asian countries.
• Low incomes at preliminary levels.
• Increase in marketing expenses to gain market share.

Alternative-2: Introduction of Click and Recommendations of Aligning Supply Chain Strategies With Product Uncertainties Case Solution Stores

Alternative 2 includes the introduction of online market places through producing a proper company's website. With the increased trends towards online shopping, the online shops like Amazon, Alibaba etc. might posture a serious hazard to the market share of company. Additionally, the rivals are shifting towards click and Recommendations of Aligning Supply Chain Strategies With Product Uncertainties Case Help stores with Gap introducing Piperline. This shift towards online markets might minimize the earnings for company. In this situation the business might consider introducing Click and Recommendations of Aligning Supply Chain Strategies With Product Uncertainties Case Help shops. These stores with a low requirement of funds to settle would enable the business to reach global markets, without ending its domestic shops. The benefits and drawbacks of option 2 are offered as follows;

Pros:

• Low investment
• Reducing competition hazard
• Access to the world markets
• Increasing the size of consumer base
• Easy to handle
• Big Profits
• Low Operating Costs
• Easy new market entryway

Cons:

• Danger to the market position
• Removal of brand name Uniqueness
• Elimination of the great shop experience.
• Threat of decrease 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 international markets without closing its domestic stores that adds to the huge part of revenues of the business. The advantages and disadvantages associated with Alternative 3 are provided below;

Pros:

• Minimizing competitors hazard
• Access to the world markets
• Increasing the size of consumer base
• Large Profits
• Exploration of new global markets.
• Increase in earnings from international markets.
• Earnings diversity.
• Action towards being a strong international brand name.

Cons:

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



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