Recommendations of Lucent Technologies Global Supply Chain Management Case Analysis

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Recommendations of Lucent Technologies Global Supply Chain Management Case Study Solution

On the basis of above internal and external analysis of the business in addition to the examination of numerous options, the company is advised to consider alternative 3. As alternative 3 would enable the company to broaden in worldwide markets without any reduction in its local revenues and any degeneration of its market position. By considering Alternative 3, the business might preserve its store experience and brand name uniqueness. It might likewise think about alternative 2 that might permit the business to access the markets without any potential investment. Although, the company could pursue alternative 1 which would enable the company to focus on possible international markets instead of the regional markets however as the business is highly depending on the local markets with 90% of its stores in the US, there fore pursuing alternative 1 would result in the considerable decline in business's profits. The company is suggested to think about alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of Lucent Technologies Global Supply Chain Management Case Analysis Stores

Expansion towards international markets through opening new shops in other Europe and Asian nations with closing domestic stores is although a good choice for increasing the global existence of the business. The closing of domestic shops might extremely impact the earnings of the company as above 90% of its shops are located locally and closing those stores would eventually lower the profits of the firm. The business has a long term market position in United States which can not be produced soon in the brand-new markets. The option would assist the business to broaden in worldwide markets in addition to the elimination of problems raised in its local markets associated with its variety. The benefits and drawbacks for Alternative 1 are noted below;

Pros:

• Exploration of brand-new global markets.
• Increase in revenue from worldwide markets.
• Removal of concerns connected to variety.
• Earnings diversification.
• Step towards being a strong worldwide brand name.

Cons:

• Loss of comprehensive incomes from the local markets.
• Increase in competition.
• Differences in cultures might resulted in a failure of the brand name especially in Asian nations.
• Low profits at initial levels.
• Boost in marketing expenditures to gain market share.

Alternative-2: Introduction of Click and Recommendations of Lucent Technologies Global Supply Chain Management Case Analysis Stores

With the increased trends towards online shopping, the online stores like Amazon, Alibaba etc. could position a serious risk to the market share of business. In this situation the business might consider introducing Click and Recommendations of Lucent Technologies Global Supply Chain Management Case Help shops. These shops with a low requirement of funds to settle would allow the business to reach global markets, without ending its domestic stores.

Pros:

• Low financial investment
• Minimizing competition threat
• Access to the world markets
• Increasing the size of consumer base
• Easy to manage
• Large Revenues
• Low Operating Expense
• Easy brand-new market entrance

Cons:

• Hazard to the marketplace position
• Elimination of brand name Originality
• Elimination of the excellent store experience.
• Threat of decrease in elite sales.

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

Another option that the business might think about, is to expand towards the international markets without closing its domestic stores that contributes to the major part of revenues of the business. The benefits and drawbacks related to Alternative 3 are provided below;

Pros:

• Minimizing competitors danger
• Access to the world markets
• Increasing the size of consumer base
• Large Incomes
• Exploration of brand-new global markets.
• Boost in profits from worldwide markets.
• Revenue diversity.
• Step towards being a strong global brand name.

Cons:

• Continuation of problems connected to variety.
• Distinctions in cultures could resulted in a failure of the brand specifically in Asian nations.
• Low revenues at initial levels.
• Boost in marketing expenditures to gain market share.



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