Recommendations of Managing Supply Chain Inventory Pitfalls And Opportunities Case Analysis

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Recommendations of Managing Supply Chain Inventory Pitfalls And Opportunities Case Study Solution

On the basis of above internal and external analysis of the business along with the evaluation of various options, the company is suggested to think about alternative 3. As alternative 3 would permit the company to broaden in worldwide markets without any decrease in its local revenues and any degeneration of its market position. The business could pursue alternative 1 which would allow the business to focus on prospective international markets rather than the regional markets however as the company is extremely dependent on the local markets with 90% of its stores in the United States, there fore pursuing option 1 would result in the substantial decrease in company's revenue.

Aletrnative-1: Expanding International Brick and Recommendations of Managing Supply Chain Inventory Pitfalls And Opportunities Case Analysis Stores

The company has a long term market position in US 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 issues raised in its regional markets related to its diversity.

Pros:

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

Cons:

• Loss of comprehensive incomes from the regional markets.
• Boost in competition.
• Distinctions in cultures might caused a failure of the brand particularly in Asian countries.
• Low incomes at initial levels.
• Boost in marketing expenses to acquire market share.

Alternative-2: Introduction of Click and Recommendations of Managing Supply Chain Inventory Pitfalls And Opportunities Case Help Stores

Alternative 2 consists of the introduction of online market locations through producing a correct business's site. With the increased patterns towards online shopping, the online shops like Amazon, Alibaba and so on might pose an extreme hazard to the market share of company. The competitors are shifting towards click and Recommendations of Managing Supply Chain Inventory Pitfalls And Opportunities Case Analysis shops with Space introducing Piperline. This shift towards online markets could reduce the revenues for business. In this scenario the business could think about presenting Click and Recommendations of Managing Supply Chain Inventory Pitfalls And Opportunities Case Solution stores. These stores with a low requirement of funds to settle would make it possible for the company to reach worldwide markets, without ending its domestic shops. The benefits and drawbacks of alternative 2 are given as follows;

Pros:

• Low investment
• Reducing competition risk
• Access to the world markets
• Increasing the size of customer base
• Easy to handle
• Big Earnings
• Low Operating Expense
• Easy new market entrance

Cons:

• Danger to the market position
• Removal of brand name Uniqueness
• Removal of the terrific store experience.
• Risk of decrease in elite sales.

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

Another alternative that the business could think about, is to expand towards the worldwide 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 listed below;

Pros:

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

Cons:

• Continuation of concerns connected to variety.
• Distinctions in cultures might led to a failure of the brand name especially in Asian nations.
• Low earnings at preliminary levels.
• Boost in marketing expenditures to acquire market share.



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