Recommendations of Netafim: Migrating From Products To Solutions Case Solution

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Recommendations of Netafim: Migrating From Products To Solutions Case Study Solution

RecommendationsOn the basis of above internal and external analysis of the business along with the examination of different options, the company is advised to think about alternative 3. As alternative 3 would permit the company to expand in worldwide markets with no decrease in its local revenues and any degeneration of its market position. By thinking about Alternative 3, the business might preserve its shop experience and brand uniqueness. However, it might also think about alternative 2 that might permit the company to access the marketplaces without any potential financial investment. The company could pursue alternative 1 which would enable the company to focus on prospective worldwide markets rather than the local markets however as the business is extremely dependent on the regional markets with 90% of its stores in the United States, there fore pursuing option 1 would result in the substantial decrease in company's income. The company is advised to consider alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of Netafim: Migrating From Products To Solutions Case Help Stores

International SegmentsThe company has a long term market position in United States which can not be generated soon in the new markets. The alternative would help the business to expand in international markets along with the elimination of problems raised in its local markets related to its variety.

Pros:

• Expedition of new worldwide markets.
• Increase in income from global markets.
• Elimination of issues connected to diversity.
• Revenue diversification.
• Action towards being a strong worldwide brand.

Cons:

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

Alternative-2: Introduction of Click and Recommendations of Netafim: Migrating From Products To Solutions Case Solution Stores

Alternative 2 consists of the intro of online market locations through generating an appropriate business's website. With the increased trends towards online shopping, the online shops like Amazon, Alibaba and so on might pose a serious threat to the marketplace share of business. The competitors are shifting towards click and Recommendations of Netafim: Migrating From Products To Solutions Case Solution shops with Gap presenting Piperline. This shift towards online markets could minimize the revenues for company. In this circumstance the business might think about introducing Click and Recommendations of Netafim: Migrating From Products To Solutions Case Solution shops. These stores with a low requirement of funds to settle would allow the company to reach global markets, without ending its domestic stores. The advantages and disadvantages of alternative 2 are given as follows;

Pros:

• Low financial investment
• Reducing competition risk
• Access to the world markets
• Increasing the size of consumer base
• Easy to handle
• Large Earnings
• Low Operating Expense
• Easy new market entryway

Cons:

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

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

Another option that the company might think about, is to expand towards the international markets without closing its domestic shops that adds to the huge part of earnings of the company. The benefits and drawbacks related to Alternative 3 are offered below;

Pros:

• Minimizing competitors hazard
• Access to the world markets
• Enlarging consumer base
• Large Profits
• Exploration of new worldwide markets.
• Boost in earnings from worldwide markets.
• Income diversification.
• Step towards being a strong worldwide brand.

Cons:

• Extension of problems connected to diversity.
• Differences in cultures could led to a failure of the brand especially in Asian countries.
• Low earnings at preliminary levels.
• Increase in marketing expenses to acquire market share.



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