Recommendations of Steel-Making At Posco Case Help
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Recommendations of Steel-Making At Posco Case Study Analysis
On the basis of above internal and external analysis of the company along with the evaluation of various options, the company is suggested to think about alternative 3. As alternative 3 would permit the business to expand in global markets without any reduction in its local revenues and any deterioration of its market position. The business might pursue alternative 1 which would allow the company to focus on prospective international markets rather than the local markets but as the company is highly dependent on the local markets with 90% of its stores in the US, there fore pursuing option 1 would result in the considerable decrease in business's earnings.
Aletrnative-1: Expanding International Brick and Recommendations of Steel-Making At Posco Case Solution Stores
Growth towards worldwide markets through opening new stores in other Europe and Asian nations with closing domestic shops is although a great option for increasing the global existence of the business. However, the closing of domestic stores could extremely impact the incomes of the firm as above 90% of its shops are located locally and closing those shops would ultimately lower the earnings of the firm. Moreover, the company has a long term market position in US which can not be created quickly in the new markets. The alternative would assist the business to expand in global markets along with the removal of problems raised in its local markets connected to its variety. The benefits and drawbacks for Alternative 1 are noted below;
Pros:
• Expedition of new worldwide markets.
• Increase in earnings from global markets.
• Elimination of issues associated with variety.
• Income diversification.
• Action towards being a strong worldwide brand.
Cons:
• Loss of comprehensive revenues from the local markets.
• Increase in competitors.
• Distinctions in cultures might caused a failure of the brand name particularly in Asian nations.
• Low revenues at preliminary levels.
• Boost in marketing expenditures to gain market share.
Alternative-2: Introduction of Click and Recommendations of Steel-Making At Posco Case Analysis Stores
With the increased trends towards online shopping, the online stores like Amazon, Alibaba and so on might position an extreme danger to the market share of business. In this scenario the company might consider introducing Click and Recommendations of Steel-Making At Posco Case Help shops. These stores with a low requirement of funds to settle would allow the company to reach global markets, without ending its domestic shops.
Pros:
• Low financial investment
• Decreasing competitors hazard
• Access to the world markets
• Enlarging consumer base
• Easy to handle
• Big Incomes
• Low Operating Expense
• Easy new market entrance
Cons:
• Threat to the marketplace position
• Removal of brand name Uniqueness
• Elimination of the great shop experience.
• Risk of decrease in elite sales.
Alternative-3: Expansion towards International Markets Without closing Domestic Stores
Another option that the company might consider, is to expand towards the global markets without closing its domestic shops that adds to the major part of profits of the business. The pros and cons related to Alternative 3 are given listed below;
Pros:
• Decreasing competitors danger
• Access to the world markets
• Enlarging consumer base
• Large Profits
• Expedition of new international markets.
• Increase in profits from international markets.
• Earnings diversity.
• Step towards being a strong international brand.
Cons:
• Extension of concerns related to diversity.
• Differences in cultures might led to a failure of the brand especially in Asian nations.
• Low earnings at initial levels.
• Increase in marketing expenses to acquire market share.
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