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

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Recommendations of Study Questions For Rio Tinto Iron Ore Challenges Of Globalization In The Mining Industry Case Study Solution

On the basis of above internal and external analysis of the company along with the evaluation of various options, the business is suggested to think about alternative 3. As alternative 3 would permit the company to expand in international markets with no decrease in its regional incomes and any deterioration of its market position. By thinking about Alternative 3, the business could maintain its store experience and brand name uniqueness. It could likewise consider alternative 2 that could enable the company to access the markets without any prospective financial investment. The business could pursue alternative 1 which would enable the company to focus on potential international markets rather than the regional markets but as the company is extremely reliant on the local markets with 90% of its shops in the US, there fore pursuing option 1 would result in the considerable decline in business's income. The company is recommended to think about alternative 3.

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

Growth towards international markets through opening new stores in other Europe and Asian nations with closing domestic stores is although an excellent alternative for increasing the international presence of the business. Nevertheless, the closing of domestic shops could extremely impact the profits of the firm as above 90% of its stores lie domestically and closing those shops would ultimately lower the earnings of the company. Furthermore, the business has a long term market position in US which can not be generated quickly in the new markets. The alternative would help the company to expand in international markets along with the removal of problems raised in its local markets associated with its variety. The advantages and disadvantages for Alternative 1 are listed below;

Pros:

• Expedition of new global markets.
• Boost in profits from worldwide markets.
• Removal of concerns related to variety.
• Profits diversification.
• Action towards being a strong global brand.

Cons:

• Loss of comprehensive profits from the regional markets.
• Boost in competition.
• Distinctions in cultures might caused a failure of the brand name specifically in Asian nations.
• Low earnings at initial levels.
• Increase in marketing expenditures to acquire market share.

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

With the increased patterns towards online shopping, the online shops like Amazon, Alibaba and so on might posture a severe hazard to the market share of business. In this circumstance the business might consider presenting Click and Recommendations of Study Questions For Rio Tinto Iron Ore Challenges Of Globalization In The Mining Industry Case Solution stores. These stores with a low requirement of funds to settle would enable the company to reach international markets, without ending its domestic shops.

Pros:

• Low investment
• Lowering competition danger
• Access to the world markets
• Increasing the size of consumer base
• Easy to handle
• Large Revenues
• Low Operating Costs
• Easy brand-new market entryway

Cons:

• Risk to the marketplace position
• Removal of brand Individuality
• Removal of the fantastic store experience.
• Risk of decline in elite sales.

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

Another alternative that the business might consider, is to expand towards the worldwide markets without closing its domestic stores that contributes to the huge part of incomes of the company. The advantages and disadvantages related to Alternative 3 are provided listed below;

Pros:

• Minimizing competition risk
• Access to the world markets
• Expanding customer base
• Large Incomes
• Exploration of new international markets.
• Increase in income from worldwide markets.
• Earnings diversity.
• Action towards being a strong worldwide brand name.

Cons:

• Continuation of concerns connected to variety.
• Differences in cultures might led to a failure of the brand name particularly in Asian countries.
• Low earnings at initial levels.
• Increase in marketing expenses to acquire market share.



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