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

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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 various alternatives, the business is suggested to think about alternative 3. As alternative 3 would enable the company to expand in worldwide markets without any decrease in its local incomes and any deterioration of its market position. The company could pursue alternative 1 which would allow the business to focus on potential worldwide markets rather than the local markets however as the company 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 substantial decrease in business's revenue.

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 Analysis Stores

Expansion towards global markets through opening new shops in other Europe and Asian countries with closing domestic shops is although an excellent alternative for increasing the international presence of the company. Nevertheless, the closing of domestic shops could extremely affect the incomes of the company as above 90% of its shops lie domestically and closing those stores would ultimately decrease the incomes of the firm. Additionally, the company has a long term market position in US which can not be produced soon in the new markets. The choice would help the business to expand in international markets in addition to the elimination of issues raised in its regional markets connected to its variety. The advantages and disadvantages for Option 1 are listed below;

Pros:

• Expedition of brand-new international markets.
• Boost in revenue from worldwide markets.
• Removal of concerns associated with diversity.
• Earnings diversity.
• Step towards being a strong global brand name.

Cons:

• Loss of extensive profits from the regional markets.
• Increase in competition.
• Differences in cultures might led to a failure of the brand particularly in Asian nations.
• Low profits at preliminary levels.
• Boost in marketing expenditures to gain 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

With the increased patterns towards online shopping, the online stores like Amazon, Alibaba etc. might position an extreme danger to the market share of business. In this situation the company might consider introducing Click and Recommendations of Ab Volvo Regie Nationale Des Usines Renault Sa And Volvo Renault: The Contest For Shareholder Approval Case Help shops. These shops with a low requirement of funds to settle would make it possible for the business to reach worldwide markets, without ending its domestic shops.

Pros:

• Low financial investment
• Reducing competition risk
• Access to the world markets
• Increasing the size of consumer base
• Easy to manage
• Big Incomes
• Low Operating Costs
• Easy new market entryway

Cons:

• Threat to the market position
• Elimination of brand Uniqueness
• Removal of the terrific shop experience.
• Threat of decline in elite sales.

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

Another alternative that the business could think about, is to expand towards the worldwide markets without closing its domestic shops that contributes to the major part of incomes of the business. The benefits and drawbacks related to Alternative 3 are provided below;

Pros:

• Minimizing competitors risk
• Access to the world markets
• Increasing the size of customer base
• Large Incomes
• Exploration of new international markets.
• Boost in income from worldwide markets.
• Earnings diversification.
• Action towards being a strong international brand name.

Cons:

• Extension of concerns related to diversity.
• Distinctions in cultures might caused a failure of the brand name particularly in Asian nations.
• Low incomes at initial levels.
• Boost in marketing expenses to gain market share.



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