Recommendations of Solectron: From Contract Manufacturer To Global Supply Chain Integrator Case Help

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Recommendations of Solectron: From Contract Manufacturer To Global Supply Chain Integrator Case Study Analysis

On the basis of above internal and external analysis of the company along with the assessment of numerous options, the company is recommended to think about alternative 3. As alternative 3 would permit the business to broaden in international markets without any decrease in its local revenues and any deterioration of its market position. The business might pursue alternative 1 which would allow the business to focus on possible global markets rather than the local markets but as the business is highly dependent on the regional markets with 90% of its stores in the US, there fore pursuing option 1 would result in the substantial decrease in business's earnings.

Aletrnative-1: Expanding International Brick and Recommendations of Solectron: From Contract Manufacturer To Global Supply Chain Integrator Case Help Stores

Expansion towards worldwide markets through opening new shops in other Europe and Asian nations with closing domestic stores is although an excellent choice for increasing the global presence of the business. Nevertheless, the closing of domestic stores might extremely affect the earnings of the company as above 90% of its shops lie locally and closing those stores would ultimately lower the earnings of the company. The business has a long term market position in US which can not be generated quickly in the new markets. The choice would help the business to broaden in global markets along with the elimination of concerns raised in its local markets related to its diversity. The benefits and drawbacks for Option 1 are noted below;

Pros:

• Expedition of brand-new worldwide markets.
• Boost in profits from worldwide markets.
• Elimination of problems associated with variety.
• Earnings diversity.
• Action towards being a strong global brand.

Cons:

• Loss of comprehensive earnings from the regional markets.
• Boost in competitors.
• Differences in cultures could resulted in a failure of the brand name particularly in Asian countries.
• Low incomes at preliminary levels.
• Boost in marketing expenditures to gain market share.

Alternative-2: Introduction of Click and Recommendations of Solectron: From Contract Manufacturer To Global Supply Chain Integrator Case Help Stores

With the increased patterns towards online shopping, the online shops like Amazon, Alibaba etc. might position a severe danger to the market share of company. In this situation the company could consider presenting Click and Recommendations of Solectron: From Contract Manufacturer To Global Supply Chain Integrator Case Solution stores. These stores with a low requirement of funds to settle would allow the company to reach international markets, without ending its domestic stores.

Pros:

• Low financial investment
• Decreasing competitors risk
• Access to the world markets
• Expanding consumer base
• Easy to manage
• Big Incomes
• Low Operating Expense
• Easy new market entryway

Cons:

• Threat to the marketplace position
• Elimination of brand Originality
• Elimination of the great shop experience.
• Danger of decline in elite sales.

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

Another option that the company might consider, is to broaden towards the international markets without closing its domestic shops that contributes to the huge part of incomes of the business. The pros and cons connected to Alternative 3 are offered listed below;

Pros:

• Decreasing competition danger
• Access to the world markets
• Increasing the size of customer base
• Big Profits
• Expedition of new worldwide markets.
• Increase in earnings from worldwide markets.
• Earnings diversification.
• Step towards being a strong international brand name.

Cons:

• Continuation of problems related to variety.
• Differences in cultures might led to a failure of the brand name particularly in Asian countries.
• Low incomes at preliminary levels.
• Increase in marketing expenses to get market share.



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