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

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

On the basis of above internal and external analysis of the company along with the assessment of numerous alternatives, the business is advised to consider alternative 3. As alternative 3 would permit the company to broaden in international markets without any reduction in its local profits and any degeneration of its market position. By thinking about Alternative 3, the company might keep its shop experience and brand uniqueness. Nevertheless, it might also consider alternative 2 that might allow the business to access the markets without any potential financial investment. Although, the company could pursue alternative 1 which would enable the business to concentrate on possible global markets instead of the regional markets but as the business is highly dependent on the regional markets with 90% of its shops in the US, there fore pursuing option 1 would lead to the significant decline in business's revenue. The company is suggested to consider alternative 3.

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

The business has a long term market position in United States which can not be generated soon in the brand-new markets. The choice would assist the business to expand in worldwide markets along with the elimination of concerns raised in its regional markets related to its variety.

Pros:

• Exploration of brand-new worldwide markets.
• Increase in earnings from global markets.
• Removal of concerns associated with variety.
• Revenue diversity.
• Step towards being a strong worldwide brand.

Cons:

• Loss of substantial revenues from the regional markets.
• Boost in competitors.
• Differences in cultures could caused a failure of the brand name especially in Asian nations.
• Low incomes at initial levels.
• Boost in marketing expenditures to acquire market share.

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

With the increased trends towards online shopping, the online stores like Amazon, Alibaba and so on could pose a severe threat to the market share of company. In this circumstance the company could consider introducing 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 allow the business to reach worldwide markets, without ending its domestic shops.

Pros:

• Low financial investment
• Minimizing competitors danger
• Access to the world markets
• Expanding consumer base
• Easy to handle
• Big Revenues
• Low Operating Costs
• Easy brand-new market entryway

Cons:

• Hazard to the marketplace position
• Removal of brand name Originality
• Removal of the terrific shop experience.
• Risk of decrease in elite sales.

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

Another choice that the business might think about, is to expand towards the international markets without closing its domestic stores that adds to the major part of earnings of the company. The advantages and disadvantages related to Alternative 3 are offered below;

Pros:

• Lowering competition risk
• Access to the world markets
• Enlarging customer base
• Big Incomes
• Expedition of brand-new global markets.
• Boost in profits from worldwide markets.
• Income diversification.
• Action towards being a strong global brand name.

Cons:

• Extension of concerns connected to variety.
• Differences in cultures could led to a failure of the brand name particularly in Asian countries.
• Low profits at initial levels.
• Increase in marketing expenditures to gain market share.



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