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 company along with the examination of different alternatives, the company is suggested to think about alternative 3. As alternative 3 would allow the company to broaden in global markets without any reduction in its regional profits and any degeneration of its market position. The company could pursue alternative 1 which would allow the company to focus on possible worldwide markets rather than the regional markets but as the business is extremely dependent on the regional markets with 90% of its shops in the United States, there fore pursuing option 1 would result in the significant decline in company's profits.

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

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

Pros:

• Expedition of new global markets.
• Increase in revenue from international markets.
• Removal of problems associated with diversity.
• Revenue diversification.
• Step towards being a strong worldwide brand name.

Cons:

• Loss of comprehensive earnings from the local markets.
• Boost in competitors.
• Distinctions in cultures could resulted in a failure of the brand name specifically in Asian countries.
• Low incomes at preliminary levels.
• Boost in marketing expenditures to acquire market share.

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

With the increased patterns towards online shopping, the online stores like Amazon, Alibaba and so on might position an extreme hazard to the market share of company. In this scenario the company could think about introducing Click and Recommendations of Pch International (B): Supply Chain Solutions Take Off Case Solution shops. These shops with a low requirement of funds to settle would make it possible for the company to reach global markets, without ending its domestic shops.

Pros:

• Low investment
• Minimizing competition danger
• Access to the world markets
• Enlarging consumer base
• Easy to manage
• Big Revenues
• Low Operating Expense
• Easy brand-new market entrance

Cons:

• Threat to the market position
• Removal of brand Individuality
• Elimination of the fantastic store experience.
• Risk of decline in elite sales.

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

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

Pros:

• Lowering competitors danger
• Access to the world markets
• Enlarging consumer base
• Big Incomes
• Exploration of brand-new global markets.
• Increase in profits from international markets.
• Revenue diversity.
• Step towards being a strong international brand.

Cons:

• Extension of problems associated with diversity.
• Differences in cultures might led to a failure of the brand name particularly in Asian countries.
• Low incomes at preliminary levels.
• Increase in marketing expenditures to acquire market share.



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