Tiny Prints (A) Case Study Solution
Alternative-2: Product Development (new product; same market)
As they have a greater number of customers in the domestic market so selling baby product alongside baby greeting cards and wedding gifts with cards to the customer in the market it operates, would increase the market share, because it will be convenient for the potential customers to shop from the same website.
Pros:
- Exploration of the new consumers.
- Large number of consumers
- Larger consumer satisfaction.
- Increase in the product portfolio.
- Market penetration.
- Increase in revenues.
Cons:
- Increases in the research and development costs.
- Chances of product failure in the market.
- Loss of the potential investment funds.
- Shifting of the focus form key market segments and products.
- Increase in the competition by entrants offering new products.
Alternative-3: Market Development(same products; new markets)
Tiny Prints has a recognized brand name, which gives it edge to expand in the new markets with its same product line. Expanding in the new market will increase the cost, but not as higher as the other options, because itis a web based company so they it not require any huge cost to be spent, which would have been opposite if it was a physically operating store.
Pros:
- Increase in the geographical presence.
- Exploration of the new markets.
- Large number of consumers.
- Larger consumer satisfaction.
- Market penetration.
- Increase in revenues.
- No product development cost.
- Expertise in the market.
Cons:
- Increase in the competition after going through an expansion.
- Increase in the research and development costs regarding the market research.
- Chances of the product failure in the market.
- Loss of the potential investment funds.
- Shift of the focus form key market segments and products.
- Increase in the competition by new entrants with new product offers in the new market.
- Increase in the political exposure.
Recommendations
From the above alternative solutions it is recommended that Tiny Prints should expand their business through Market Development. They should start targeting international market with their existing product line, because it will be less costly when comparing with other alternatives. By doing so, the company will just have to increase its production capacity. It can generate more revenue and profit and can be recognized internationally, which will add much to the increase of its portfolio.
Although, alternative 1 and 2 could also prove be the strategic options for the company as they enable the company to explore new markets and consumers, leading further to a large number of consumers with larger consumer satisfaction, along with the increase in the product portfolio, revenues and market penetration.But, the alternatives could increase the research and development costs for the company, including the chances of product failure, loss of potential investment funds, shifting of the focus form key market segments and products, and increase in the competition by new entrants with innovative products. Therefore, the company is recommended to pursue the recommended alternative regarding the market development.
Conclusion
Although, Tiny prints has achieved a substantial growth in its initial years, but in order to be more competitive in the market and to achieve a sustainable revenue and profit growth; the company must expand in new markets by using its online stores or opening new outlets in external markets in order to improvise its declining financial as well as the market performance.
Appendices
Appendix 1: Porter’s Five Forces Analysis of Tiny Prints
| Porter’s Five Forces Model | ||||
| Threat of New Entrants | Threat of Substitution | Competitive Rivalry | Bargaining power of buyer | Bargaining power of Supplier |
| High | High | Moderate | High | Moderate |
| · Less capital required
· High industrial growth · Less skills required
|
· quality products
· low switching cost
|
· Few competitors
· Different products · Strong campaigns |
· Substitutes available
· Innovation · Not a necessity product |
· Numerous customers
· Brand identity · High volume purchase
|
Appendix-2: SWOT Analysis
| SWOT Analysis | |||
| Strengths | Weaknesses | Opportunities | Threats |
| · Diverse portfolio of products.
· Strong brand name in the market. · High potential growth in initial years · Online foothold · High amount of financial resources
|
· Lack of technological and digital experience.
· Poor cash management. · No Physical Stores
|
· Can take expertise from technological and digital expert.
· Can expand in international market.
|
· Increasing competition in the market.
· Increased cost if worked in international market.
|
Appendix-3: Evaluation of Alternatives
| Evaluation of Alternatives | ||
| Pros | Cons | |
|
Alternative 1 |
· Exploration of new markets and consumers.
· Large number of consumers · Larger consumer satisfaction · Increase in the product portfolio · Market penetration · Increase in revenues · Decrease in the reliance over a single market. · Achievement of business growth through expansion.
|
· Increase in competition after expansion
· Increases in the research and development costs · Chances of product failure in the market · Loss of potential investment funds · Shifting of the focus form key market segments and products · Increase in competition by entrance with new product in the new market · Increase in the political exposure
|
|
Alternative 2
|
· Exploration of new consumers.
· Large number of consumers · Larger consumer satisfaction · Increase in the product portfolio · Market penetration · Increase in revenues
|
· Increases in the research and development costs
· Chances of product failure in the market · Loss of potential investment funds · Shifting of the focus form key market segments and products · Increase in competition by entrance with new product.
|
|
Alternative 3 |
· Increase in the geographical presence
· Exploration of new markets. · Large number of consumers · Larger consumer satisfaction · Market penetration · No product development cost · Expertise in the market
|
· Increase in competition after expansion
· Increases in the research and development costs regarding market research · Chances of product failure in the market · Loss of potential investment funds · Shifting of the focus form key market segments and products |
This is just a sample partical work. Please place the order on the website to get your own originally done case solution.
How We Work?
Just email us your case materials and instructions to order@thecasesolutions.com and confirm your order by making the payment here
Related Case Solutions & Analyses:
V-Cola: Confidential Instructions for Connie Sultant
Schuberg Philis
Dana Hall: Funding a Mission (A)
Exclusive Resorts
Work and Job Search Related Stress
Beyond the Myth of the Perfect Mentor: Building a Network of Developmental Relationships
SABIS – A Global Educational Venture From Lebanon
: THE CHILDREN’S PLACE INC.: CHALLENGES IN A POST-RANA PLAZA WORLD
Accounting Fraud at World Com
Discuss role of language in culture
