Recommendations of Tong Yang Cement (B): Demand Forecasting And Globalization Case Analysis

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Recommendations of Tong Yang Cement (B): Demand Forecasting And Globalization Case Study Analysis

RecommendationsOn the basis of above internal and external analysis of the business along with the assessment of numerous options, the company is advised to think about alternative 3. As alternative 3 would allow the company to broaden in global markets without any decrease in its local revenues and any deterioration of its market position. The business could pursue alternative 1 which would enable the company to focus on prospective international markets rather than the regional markets but as the business is extremely reliant on the regional markets with 90% of its stores in the United States, there fore pursuing alternative 1 would result in the significant decline in business's income.

Aletrnative-1: Expanding International Brick and Recommendations of Tong Yang Cement (B): Demand Forecasting And Globalization Case Solution Stores

International SegmentsGrowth towards international markets through opening new shops in other Europe and Asian nations with closing domestic shops is although a great option for increasing the international presence of the business. However, the closing of domestic shops could highly impact the profits of the company as above 90% of its stores are located locally and closing those shops would eventually reduce the profits of the firm. The company has a long term market position in US which can not be generated soon in the new markets. The choice would assist the business to expand in global markets together with the elimination of issues raised in its regional markets connected to its diversity. The advantages and disadvantages for Option 1 are noted below;

Pros:

• Exploration of brand-new global markets.
• Increase in revenue from international markets.
• Removal of problems related to variety.
• Profits diversity.
• Step towards being a strong global brand.

Cons:

• Loss of substantial revenues from the regional markets.
• Increase in competition.
• Differences in cultures might resulted in a failure of the brand specifically in Asian nations.
• Low revenues at preliminary levels.
• Boost in marketing expenses to acquire market share.

Alternative-2: Introduction of Click and Recommendations of Tong Yang Cement (B): Demand Forecasting And Globalization Case Solution Stores

With the increased patterns towards online shopping, the online stores like Amazon, Alibaba etc. could present a severe threat to the market share of business. In this situation the company might consider presenting Click and Recommendations of Tong Yang Cement (B): Demand Forecasting And Globalization Case Solution shops. These shops with a low requirement of funds to settle would allow the company to reach worldwide markets, without ending its domestic shops.

Pros:

• Low investment
• Reducing competition risk
• Access to the world markets
• Enlarging consumer base
• Easy to handle
• Large Earnings
• Low Operating Expense
• Easy new market entryway

Cons:

• Hazard to the marketplace position
• Removal of brand name Uniqueness
• Removal of the fantastic store experience.
• Danger of decrease 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 international markets without closing its domestic stores that contributes to the major part of incomes of the company. The benefits and drawbacks related to Alternative 3 are offered listed below;

Pros:

• Minimizing competitors risk
• Access to the world markets
• Expanding consumer base
• Large Earnings
• Exploration of brand-new international markets.
• Increase in profits from global markets.
• Profits diversification.
• Step towards being a strong global brand.

Cons:

• Extension of concerns connected to variety.
• Differences in cultures might led to a failure of the brand especially in Asian countries.
• Low revenues at initial levels.
• Increase in marketing expenditures to acquire market share.



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