Recommendations of Ab Volvo Regie Nationale Des Usines Renault Sa And Volvo Renault The Contest For Shareholder Approval Case Analysis

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Recommendations of Ab Volvo Regie Nationale Des Usines Renault Sa And Volvo Renault The Contest For Shareholder Approval Case Study Solution

On the basis of above internal and external analysis of the business along with the evaluation of numerous alternatives, the company is suggested to consider alternative 3. As alternative 3 would enable the company to broaden in worldwide markets without any reduction in its local profits and any deterioration of its market position. The company could pursue alternative 1 which would allow the company to focus on prospective worldwide markets rather than the local markets but as the company is highly dependent on the local markets with 90% of its stores in the United States, there fore pursuing alternative 1 would result in the significant decrease in company's income.

Aletrnative-1: Expanding International Brick and Recommendations of Ab Volvo Regie Nationale Des Usines Renault Sa And Volvo Renault The Contest For Shareholder Approval Case Solution Stores

Growth towards worldwide markets through opening new shops in other Europe and Asian nations with closing domestic stores is although a good choice for increasing the global presence of the business. The closing of domestic shops might highly affect the earnings of the company as above 90% of its stores are located domestically and closing those shops would eventually minimize the earnings of the company. Furthermore, the business has a long term market position in US which can not be generated quickly in the brand-new markets. The alternative would help the company to broaden in worldwide markets along with the removal of problems raised in its local markets connected to its variety. The pros and Cons for Option 1 are listed below;

Pros:

• Exploration of new worldwide markets.
• Boost in revenue from global markets.
• Elimination of issues related to diversity.
• Profits diversity.
• Step towards being a strong worldwide brand.

Cons:

• Loss of comprehensive incomes from the local markets.
• Increase in competition.
• Distinctions in cultures could resulted in a failure of the brand name especially in Asian countries.
• Low incomes at preliminary levels.
• Increase in marketing expenses to acquire market share.

Alternative-2: Introduction of Click and Recommendations of Ab Volvo Regie Nationale Des Usines Renault Sa And Volvo Renault The Contest For Shareholder Approval Case Analysis Stores

Alternative 2 consists of the intro of online market locations through generating a proper company's site. With the increased trends towards online shopping, the online stores like Amazon, Alibaba etc. might position a serious danger to the marketplace share of business. The competitors are moving towards click and Recommendations of Ab Volvo Regie Nationale Des Usines Renault Sa And Volvo Renault The Contest For Shareholder Approval Case Solution stores with Space presenting Piperline. This shift towards online markets could decrease the earnings for company. In this scenario the business could think about introducing Click and Recommendations of Ab Volvo Regie Nationale Des Usines Renault Sa And Volvo Renault The Contest For Shareholder Approval Case Help stores. These stores with a low requirement of funds to settle would enable the business to reach global markets, without ending its domestic stores. The advantages and disadvantages of alternative 2 are given as follows;

Pros:

• Low investment
• Lowering competitors danger
• Access to the world markets
• Enlarging consumer base
• Easy to manage
• Big Incomes
• Low Operating Expense
• Easy brand-new market entryway

Cons:

• Threat to the market position
• Removal of brand Originality
• Elimination of the excellent store experience.
• Threat of decrease in elite sales.

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

Another choice that the company might consider, is to broaden towards the worldwide markets without closing its domestic shops that contributes to the huge part of incomes of the company. The pros and cons related to Alternative 3 are provided below;

Pros:

• Lowering competitors danger
• Access to the world markets
• Expanding consumer base
• Large Revenues
• Expedition of new global markets.
• Increase in profits from global markets.
• Income diversification.
• Action towards being a strong worldwide brand name.

Cons:

• Continuation of problems related to diversity.
• Distinctions in cultures could led to a failure of the brand especially in Asian countries.
• Low profits at initial levels.
• Increase in marketing expenditures to acquire market share.



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