Recommendations of Everything Is Connected A New Era Of Sustainability At Li And Fung Case Solution

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Recommendations of Everything Is Connected A New Era Of Sustainability At Li And Fung Case Study Solution

On the basis of above internal and external analysis of the business in addition to the examination of various alternatives, the company is advised to think about alternative 3. As alternative 3 would allow the business to expand in international markets without any reduction in its local incomes and any deterioration of its market position. By considering Alternative 3, the company could maintain its store experience and brand originality. Nevertheless, it could likewise consider alternative 2 that could allow the business to access the markets with no potential investment. Although, the business might pursue alternative 1 which would enable the company to concentrate on potential global markets instead of the regional markets but as the business is extremely based on the regional markets with 90% of its shops in the US, there fore pursuing alternative 1 would result in the considerable decrease in company's income. The business is advised to think about alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of Everything Is Connected A New Era Of Sustainability At Li And Fung Case Solution Stores

Expansion towards international markets through opening new shops in other Europe and Asian countries with closing domestic stores is although a great option for increasing the worldwide existence of the business. The closing of domestic stores could highly impact the earnings of the company as above 90% of its stores are situated domestically and closing those stores would ultimately minimize the profits of the company. The company has a long term market position in US which can not be generated soon in the brand-new markets. The alternative would assist the business to broaden in international markets together with the elimination of concerns raised in its regional markets associated with its diversity. The benefits and drawbacks for Alternative 1 are listed below;

Pros:

• Expedition of brand-new international markets.
• Increase in profits from international markets.
• Removal of problems associated with diversity.
• Profits diversification.
• Step towards being a strong global brand.

Cons:

• Loss of substantial incomes from the local markets.
• Boost in competition.
• Distinctions in cultures could caused a failure of the brand name particularly in Asian nations.
• Low profits at preliminary levels.
• Boost in marketing expenditures to acquire market share.

Alternative-2: Introduction of Click and Recommendations of Everything Is Connected A New Era Of Sustainability At Li And Fung Case Help Stores

With the increased trends towards online shopping, the online shops like Amazon, Alibaba and so on might pose an extreme threat to the market share of company. In this scenario the business might consider introducing Click and Recommendations of Everything Is Connected A New Era Of Sustainability At Li And Fung Case Analysis shops. These shops with a low requirement of funds to settle would allow the company to reach worldwide markets, without ending its domestic stores.

Pros:

• Low investment
• Minimizing competitors risk
• Access to the world markets
• Increasing the size of consumer base
• Easy to manage
• Large Revenues
• Low Operating Expense
• Easy new market entryway

Cons:

• Hazard to the marketplace position
• Removal of brand name Uniqueness
• Elimination of the excellent shop experience.
• Risk of decline in elite sales.

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

Another option that the business might think about, is to broaden towards the global markets without closing its domestic stores that contributes to the major part of incomes of the company. The pros and cons connected to Alternative 3 are provided below;

Pros:

• Decreasing competitors danger
• Access to the world markets
• Enlarging consumer base
• Large Profits
• Exploration of new international markets.
• Increase in revenue from global markets.
• Revenue diversification.
• Step towards being a strong worldwide brand.

Cons:

• Extension of problems associated with diversity.
• Distinctions in cultures could led to a failure of the brand name particularly in Asian countries.
• Low profits at preliminary levels.
• Boost in marketing expenses to get market share.



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