Recommendations of 1720: John Law And The Mississippi Bubble (B) Case Analysis

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Recommendations of 1720: John Law And The Mississippi Bubble (B) Case Study Analysis

On the basis of above internal and external analysis of the business along with the examination of various options, the company is suggested to consider alternative 3. As alternative 3 would enable the company to expand in international markets without any reduction in its local earnings and any deterioration of its market position. The company might pursue alternative 1 which would make it possible for the business to focus on prospective worldwide markets rather than the regional markets however as the business is extremely dependent on the local markets with 90% of its shops in the US, there fore pursuing alternative 1 would result in the considerable decline in company's earnings.

Aletrnative-1: Expanding International Brick and Recommendations of 1720: John Law And The Mississippi Bubble (B) Case Analysis Stores

Expansion towards international markets through opening brand-new stores in other Europe and Asian countries with closing domestic shops is although a good alternative for increasing the global presence of the company. However, the closing of domestic shops might extremely affect the incomes of the firm as above 90% of its shops lie locally and closing those stores would eventually lower the incomes of the firm. Furthermore, the company has a long term market position in United States which can not be generated soon in the new markets. The alternative would assist the company to expand in global markets together with the removal of concerns raised in its local markets associated with its diversity. The pros and Cons for Option 1 are listed below;

Pros:

• Expedition of brand-new global markets.
• Increase in profits from international markets.
• Removal of problems associated with variety.
• Revenue diversity.
• Step towards being a strong global brand.

Cons:

• Loss of comprehensive revenues from the local markets.
• Increase in competitors.
• Distinctions in cultures might resulted in a failure of the brand specifically in Asian countries.
• Low profits at initial levels.
• Increase in marketing expenditures to get market share.

Alternative-2: Introduction of Click and Recommendations of 1720: John Law And The Mississippi Bubble (B) Case Analysis Stores

With the increased patterns towards online shopping, the online stores like Amazon, Alibaba etc. might pose a severe hazard to the market share of company. In this situation the company could think about introducing Click and Recommendations of 1720: John Law And The Mississippi Bubble (B) Case Solution stores. These shops with a low requirement of funds to settle would allow the company to reach international markets, without ending its domestic stores.

Pros:

• Low financial investment
• Minimizing competitors risk
• Access to the world markets
• Enlarging consumer base
• Easy to handle
• Big Revenues
• Low Operating Expense
• Easy brand-new market entrance

Cons:

• Danger to the market position
• Elimination of brand Originality
• Elimination of the fantastic shop experience.
• Risk of decline in elite sales.

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

Another option that the business could consider, is to broaden towards the global markets without closing its domestic shops that contributes to the huge part of revenues of the business. The benefits and drawbacks connected to Alternative 3 are given listed below;

Pros:

• Lowering competitors danger
• Access to the world markets
• Enlarging consumer base
• Large Revenues
• Exploration of new international markets.
• Boost in earnings from international markets.
• Earnings diversification.
• Action towards being a strong global brand name.

Cons:

• Continuation of concerns associated with variety.
• Distinctions in cultures could led to a failure of the brand name specifically in Asian nations.
• Low incomes at preliminary levels.
• Increase in marketing expenditures to gain market share.



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