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

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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 business together with the examination of numerous alternatives, the company is advised to consider alternative 3. As alternative 3 would enable the business to expand in worldwide markets without any decrease in its local incomes and any degeneration of its market position. By thinking about Alternative 3, the company could preserve its shop experience and brand individuality. Nevertheless, it could likewise consider alternative 2 that could allow the business to access the marketplaces without any potential investment. The company could pursue alternative 1 which would allow the business to focus on potential international markets rather than the regional markets but as the business is extremely dependent on the local markets with 90% of its stores in the US, there fore pursuing option 1 would result in the substantial decline in company's profits. The business is advised 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 Help 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 help the company to broaden in global markets along with the removal of issues raised in its regional markets related to its variety.

Pros:

• Expedition of new international markets.
• Increase in earnings from international markets.
• Elimination of issues connected to variety.
• Income diversification.
• Step towards being a strong international brand.

Cons:

• Loss of extensive profits from the regional markets.
• Boost in competitors.
• Distinctions in cultures might caused a failure of the brand specifically in Asian nations.
• Low incomes at initial levels.
• Increase in marketing expenditures to get 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 Help Stores

Alternative 2 includes the introduction of online market places through producing a correct company's website. With the increased patterns towards online shopping, the online stores like Amazon, Alibaba and so on could posture a serious danger to the market share of business. Additionally, the competitors are shifting towards click and Recommendations of Study Questions For: Rio Tinto Iron Ore: Challenges Of Globalization In The Mining Industry Case Solution stores with Space introducing Piperline. This shift towards online markets might minimize the incomes for business. In this circumstance the company could consider introducing Click and Recommendations of Study Questions For: Rio Tinto Iron Ore: Challenges Of Globalization In The Mining Industry Case Analysis shops. These stores with a low requirement of funds to settle would enable the business to reach worldwide markets, without ending its domestic stores. The pros and cons of option 2 are offered as follows;

Pros:

• Low financial investment
• Decreasing competition danger
• Access to the world markets
• Enlarging consumer base
• Easy to manage
• Big Revenues
• Low Operating Expense
• Easy brand-new market entrance

Cons:

• Hazard to the marketplace position
• Elimination of brand name Originality
• Elimination of the terrific shop experience.
• Threat of decline in elite sales.

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

Another choice that the business could consider, is to broaden towards the international markets without closing its domestic shops that adds to the major part of incomes of the company. The benefits and drawbacks related to Alternative 3 are provided listed below;

Pros:

• Lowering competitors threat
• Access to the world markets
• Enlarging customer base
• Large Earnings
• Expedition of brand-new global markets.
• Boost in revenue from international markets.
• Income diversification.
• Step towards being a strong international brand.

Cons:

• Extension of problems related to diversity.
• Distinctions in cultures might resulted in a failure of the brand name especially in Asian countries.
• Low earnings at preliminary levels.
• Boost in marketing expenses to get market share.



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