Recommendations of Shanzhai (Bandit) Mobile Phone Companies The Guerilla Warfare Of Product Development And Supply Chain Management Case Analysis

Home >> Stanford Business School >> Shanzhai (Bandit) Mobile Phone Companies The Guerilla Warfare Of Product Development And Supply Chain Management >> Recommendations

Recommendations of Shanzhai (Bandit) Mobile Phone Companies The Guerilla Warfare Of Product Development And Supply Chain Management Case Study Analysis

On the basis of above internal and external analysis of the business along with the examination of various alternatives, the business is recommended to think about alternative 3. As alternative 3 would enable the company to expand in worldwide markets without any decrease in its local revenues and any deterioration of its market position. The company could pursue alternative 1 which would allow the company to focus on possible 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 considerable decrease in company's profits.

Aletrnative-1: Expanding International Brick and Recommendations of Shanzhai (Bandit) Mobile Phone Companies The Guerilla Warfare Of Product Development And Supply Chain Management Case Solution Stores

Expansion towards worldwide markets through opening brand-new shops in other Europe and Asian nations with closing domestic shops is although a good alternative for increasing the international presence of the company. Nevertheless, the closing of domestic stores could extremely impact the revenues of the company as above 90% of its shops lie locally and closing those shops would ultimately lower the incomes of the firm. The business has a long term market position in United States which can not be created quickly in the brand-new markets. The option would help the company to broaden in international markets together with the elimination of problems raised in its regional markets connected to its variety. The pros and Cons for Alternative 1 are listed below;

Pros:

• Exploration of new worldwide markets.
• Increase in income from global markets.
• Elimination of issues associated with variety.
• Earnings diversification.
• Action towards being a strong worldwide brand.

Cons:

• Loss of extensive profits from the local markets.
• Boost in competition.
• Distinctions in cultures could resulted in a failure of the brand especially in Asian countries.
• Low revenues at initial levels.
• Boost in marketing expenditures to acquire market share.

Alternative-2: Introduction of Click and Recommendations of Shanzhai (Bandit) Mobile Phone Companies The Guerilla Warfare Of Product Development And Supply Chain Management Case Analysis Stores

Alternative 2 consists of the intro of online market places through producing an appropriate business's website. With the increased trends towards online shopping, the online stores like Amazon, Alibaba etc. could pose an extreme risk to the market share of business. The rivals are shifting towards click and Recommendations of Shanzhai (Bandit) Mobile Phone Companies The Guerilla Warfare Of Product Development And Supply Chain Management Case Help stores with Space introducing Piperline. This shift towards online markets could lower the incomes for company. In this scenario the business might think about presenting Click and Recommendations of Shanzhai (Bandit) Mobile Phone Companies The Guerilla Warfare Of Product Development And Supply Chain Management Case Solution stores. These shops with a low requirement of funds to settle would allow the company to reach international markets, without ending its domestic stores. The pros and cons of alternative 2 are given as follows;

Pros:

• Low financial investment
• Reducing competition hazard
• Access to the world markets
• Enlarging customer base
• Easy to manage
• Big Earnings
• Low Operating Expense
• Easy new market entryway

Cons:

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

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

Another option that the company could consider, is to expand towards the worldwide markets without closing its domestic stores that adds to the major part of revenues of the business. The pros and cons related to Alternative 3 are given listed below;

Pros:

• Lowering competition danger
• Access to the world markets
• Enlarging customer base
• Large Profits
• Exploration of brand-new international markets.
• Increase in earnings from international markets.
• Income diversity.
• Step towards being a strong global brand.

Cons:

• Continuation of issues associated with variety.
• Differences in cultures might caused a failure of the brand particularly in Asian countries.
• Low incomes at initial levels.
• Increase in marketing expenses to acquire market share.



This is sample work and not applicable to real case study. Please place the order on the website to get your own originally done case solution.