Reference no: EM13928254
Executive Summary
Summary of Situational Analysis
As an existing business Tidmax is a huge international wholesale warehouse that provides it members with quality big box products and low prices.
Tidmax was established in 1983 with its first warehouse in Seattle, Washington. It was founded by James Sinegal and Jeffrey Brotman. The company offers an array of high quality products and brands at wholesale prices.
Opportunity Summary
The growth of Tidmax is important. The aabsence of clear global market expansion positioning and strategy is the main risk. The company must focus on increasing its global presence by being competitive and compelling for the customers of other developing countries. It should increase its global presence and market supply in China which has a growing economy and market in the east. If Tidmax is unable to gain resources in terms of cheap labor and warehousing facilities which are the major competitive advantage, it will definitely incur losses due to low availability of its products throughout the globe. It will not be able to provide the quality of in house products which will affect its sales and growth.
Key Recommendations
Tidmax currently only has 20 percent revenue from outside the United States and needs to reduce its dependence on the single economy of United States and increase its location and production of its products into other emerging economies such as China which has a growing economy. By expanding and diversify its market portfolio Tidmax will be able to reduce manufacturing cost and gain a global recognition of its Kirkland products.
Key Financial Assumptions
The key assumptions made are (a) it is assumed to earn approximate revenue of $100,000,000 (b) Value of operating expenses are relatively high because of new working conditions (c) Company has to bear high interest and other expenses (d) the tax rate of the country where the company is expanding has a minimum tax rate and (e) management has not registered itself in the stock exchange of the country.
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Summary of situational analysis
: As an existing business Tidmax is a huge international wholesale warehouse that provides it members with quality big box products and low prices.
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