Recommendations of Rio Tinto Iron Ore Challenges Of Globalization In The Mining Industry Case Analysis

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Recommendations of Rio Tinto Iron Ore Challenges Of Globalization In The Mining Industry Case Study Analysis

On the basis of above internal and external analysis of the company together with the evaluation of various alternatives, the business is advised to think about alternative 3. As alternative 3 would permit the company to broaden in worldwide markets with no decrease in its local profits and any degeneration of its market position. By thinking about Alternative 3, the company might preserve its store experience and brand individuality. It might likewise think about alternative 2 that might enable the company to access the markets without any potential investment. The business could pursue alternative 1 which would enable the business to focus on potential global markets rather than the local markets however as the company is extremely reliant on the regional markets with 90% of its stores in the US, there fore pursuing option 1 would result in the substantial decline in business's income. Therefore, the business is recommended to consider alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of Rio Tinto Iron Ore Challenges Of Globalization In The Mining Industry Case Help Stores

The business 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 elimination of concerns raised in its local markets related to its diversity.

Pros:

• Expedition of new international markets.
• Increase in profits from global markets.
• Removal of problems related to diversity.
• Earnings diversity.
• Step towards being a strong worldwide brand.

Cons:

• Loss of comprehensive revenues from the regional markets.
• Boost in competition.
• Differences in cultures might resulted in a failure of the brand especially in Asian nations.
• Low earnings at preliminary levels.
• Boost in marketing expenses to gain market share.

Alternative-2: Introduction of Click and Recommendations of Rio Tinto Iron Ore Challenges Of Globalization In The Mining Industry Case Solution Stores

Alternative 2 consists of the intro of online market locations through producing a proper company's site. With the increased patterns towards online shopping, the online stores like Amazon, Alibaba and so on could pose an extreme risk to the marketplace share of business. The rivals are shifting towards click and Recommendations of Rio Tinto Iron Ore Challenges Of Globalization In The Mining Industry Case Solution shops with Space introducing Piperline. This shift towards online markets could decrease the profits for business. In this situation the company could consider presenting Click and Recommendations of Rio Tinto Iron Ore Challenges Of Globalization In The Mining Industry Case Analysis stores. These stores with a low requirement of funds to settle would make it possible for the business to reach global markets, without ending its domestic shops. The benefits and drawbacks of option 2 are offered as follows;

Pros:

• Low financial investment
• Lowering competitors hazard
• Access to the world markets
• Enlarging customer base
• Easy to manage
• Big Revenues
• Low Operating Expense
• Easy new market entrance

Cons:

• Hazard to the marketplace position
• Removal of brand Originality
• Removal of the terrific shop experience.
• Danger 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 stores that contributes to the huge part of revenues of the company. The pros and cons connected to Alternative 3 are offered below;

Pros:

• Decreasing competition risk
• Access to the world markets
• Increasing the size of consumer base
• Big Revenues
• Expedition of brand-new worldwide markets.
• Increase in earnings from worldwide markets.
• Profits diversity.
• Step towards being a strong international brand name.

Cons:

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



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