Recommendations of Managing Supply Chain Inventory: Pitfalls And Opportunities Case Help

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Recommendations of Managing Supply Chain Inventory: Pitfalls And Opportunities Case Study Analysis

On the basis of above internal and external analysis of the company along with the assessment of different options, the company is suggested to consider alternative 3. As alternative 3 would enable the business to expand in worldwide markets without any reduction in its regional incomes and any wear and tear of its market position. By considering Alternative 3, the business could preserve its shop experience and brand uniqueness. Nevertheless, it might likewise consider alternative 2 that could permit the company to access the marketplaces with no potential investment. The business 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 stores in the US, there fore pursuing option 1 would result in the substantial decline in business's earnings. For that reason, the company is advised to consider alternative 3.

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 choice would help the business to broaden in international markets along with the removal of concerns raised in its local markets related to its diversity.

Pros:

• Expedition of new worldwide markets.
• Boost in earnings from worldwide markets.
• Removal of issues associated with diversity.
• Profits diversity.
• Action towards being a strong international brand.

Cons:

• Loss of extensive profits from the regional markets.
• Increase in competition.
• Distinctions in cultures could led to a failure of the brand specifically in Asian nations.
• Low profits at initial levels.
• Boost in marketing expenses to get market share.

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

With the increased patterns towards online shopping, the online stores like Amazon, Alibaba etc. could position a serious hazard to the market share of business. In this situation the company could consider presenting Click and Recommendations of Managing Supply Chain Inventory: Pitfalls And Opportunities Case Analysis shops. These shops with a low requirement of funds to settle would enable the company to reach worldwide markets, without ending its domestic stores.

Pros:

• Low investment
• Decreasing competitors threat
• Access to the world markets
• Increasing the size of consumer base
• Easy to manage
• Large Profits
• Low Operating Costs
• Easy brand-new market entryway

Cons:

• Threat to the market position
• Removal of brand name Individuality
• Removal of the great store experience.
• Threat of decline in elite sales.

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

Another choice that the company might consider, is to expand towards the worldwide markets without closing its domestic shops that contributes to the huge part of revenues of the business. The advantages and disadvantages connected to Alternative 3 are given below;

Pros:

• Decreasing competition risk
• Access to the world markets
• Increasing the size of customer base
• Large Incomes
• Expedition of brand-new international markets.
• Increase in profits from international markets.
• Revenue diversity.
• Step towards being a strong international brand.

Cons:

• Extension of issues related to variety.
• Distinctions in cultures might led to a failure of the brand name especially in Asian nations.
• Low revenues at initial levels.
• Increase in marketing expenses to gain market share.



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