Recommendations of Pch International (B) Supply Chain Solutions Take Off Case Analysis

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Recommendations of Pch International (B) Supply Chain Solutions Take Off Case Study Solution

On the basis of above internal and external analysis of the business along with the assessment of numerous options, the business is suggested to consider alternative 3. As alternative 3 would enable the business to expand in international markets with no reduction in its local incomes and any degeneration of its market position. By thinking about Alternative 3, the company could preserve its store experience and brand name individuality. Nevertheless, it could likewise consider alternative 2 that could allow the company to access the markets without any possible investment. Although, the company might pursue alternative 1 which would make it possible for the business to focus on possible international markets instead of the regional markets however as the company is extremely depending on the regional markets with 90% of its stores in the US, there fore pursuing option 1 would lead to the significant decrease in business's revenue. Therefore, the business is recommended to think about alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of Pch International (B) Supply Chain Solutions Take Off Case Solution Stores

The business has a long term market position in United States which can not be generated soon in the new markets. The choice would assist the business to broaden in international markets along with the removal of problems raised in its local markets related to its diversity.

Pros:

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

Cons:

• Loss of extensive incomes from the local markets.
• Increase in competitors.
• Distinctions in cultures could led to a failure of the brand name specifically in Asian countries.
• Low revenues at preliminary levels.
• Increase in marketing expenditures to acquire market share.

Alternative-2: Introduction of Click and Recommendations of Pch International (B) Supply Chain Solutions Take Off Case Solution Stores

Alternative 2 consists of the intro of online market places through creating a correct business's site. With the increased trends towards online shopping, the online stores like Amazon, Alibaba and so on might pose a serious hazard to the marketplace share of business. Additionally, the competitors are shifting towards click and Recommendations of Pch International (B) Supply Chain Solutions Take Off Case Solution stores with Gap presenting Piperline. This shift towards online markets might reduce the profits for company. In this circumstance the business could consider presenting Click and Recommendations of Pch International (B) Supply Chain Solutions Take Off Case Solution shops. These stores with a low requirement of funds to settle would allow the company to reach worldwide markets, without ending its domestic stores. The pros and cons of option 2 are given as follows;

Pros:

• Low investment
• Minimizing competition danger
• Access to the world markets
• Increasing the size of customer base
• Easy to handle
• Large Revenues
• Low Operating Expense
• Easy new market entryway

Cons:

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

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

Another alternative that the company could think about, is to expand towards the international markets without closing its domestic stores that adds to the huge part of profits of the business. The benefits and drawbacks connected to Alternative 3 are provided below;

Pros:

• Minimizing competition threat
• Access to the world markets
• Increasing the size of customer base
• Large Incomes
• Expedition of new global markets.
• Increase in income from global markets.
• Profits diversification.
• Step towards being a strong worldwide brand name.

Cons:

• Continuation of problems associated with diversity.
• Differences in cultures might led to a failure of the brand specifically in Asian nations.
• Low revenues at initial levels.
• Boost in marketing expenses to acquire market share.



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