Recommendations of Astral Records Ltd North America Some Financial Concerns Case Solution

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Recommendations of Astral Records Ltd North America Some Financial Concerns Case Study Solution

On the basis of above internal and external analysis of the business along with the evaluation of different options, the business is recommended to consider alternative 3. As alternative 3 would enable the company to broaden in international markets without any decrease in its local incomes and any degeneration of its market position. By thinking about Alternative 3, the business could maintain its store experience and brand name originality. It might also think about alternative 2 that might enable the business to access the markets without any prospective investment. The company could pursue alternative 1 which would allow the company to focus on possible worldwide markets rather than the local markets however as the business is highly dependent on the regional markets with 90% of its shops in the US, there fore pursuing option 1 would result in the considerable decrease in company's income. The company is suggested to consider alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of Astral Records Ltd North America Some Financial Concerns Case Analysis Stores

The business has a long term market position in US which can not be generated soon in the new markets. The alternative would assist the business to broaden in global markets along with the elimination of issues raised in its regional markets related to its variety.

Pros:

• Exploration of brand-new worldwide markets.
• Increase in revenue from global markets.
• Elimination of concerns associated with diversity.
• Profits diversity.
• Step towards being a strong global brand.

Cons:

• Loss of substantial incomes from the regional markets.
• Boost in competitors.
• Distinctions in cultures could resulted in a failure of the brand name specifically in Asian countries.
• Low profits at preliminary levels.
• Increase in marketing expenditures to acquire market share.

Alternative-2: Introduction of Click and Recommendations of Astral Records Ltd North America Some Financial Concerns Case Solution Stores

Alternative 2 consists of the introduction of online market locations through generating a proper business's website. With the increased patterns towards online shopping, the online shops like Amazon, Alibaba etc. might pose a severe risk to the market share of company. Additionally, the competitors are shifting towards click and Recommendations of Astral Records Ltd North America Some Financial Concerns Case Solution stores with Space presenting Piperline. This shift towards online markets could lower the incomes for company. In this scenario the business might consider introducing Click and Recommendations of Astral Records Ltd North America Some Financial Concerns Case Solution shops. These stores with a low requirement of funds to settle would allow the business to reach global markets, without ending its domestic shops. The benefits and drawbacks of option 2 are offered as follows;

Pros:

• Low financial investment
• Lowering competition hazard
• Access to the world markets
• Increasing the size of consumer base
• Easy to handle
• Big Incomes
• Low Operating Costs
• Easy brand-new market entryway

Cons:

• Hazard to the marketplace position
• Removal of brand name Uniqueness
• Removal of the excellent shop experience.
• Threat of decrease in elite sales.

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

Another option that the company might consider, is to expand towards the international markets without closing its domestic stores that adds to the major part of incomes of the business. The benefits and drawbacks related to Alternative 3 are given below;

Pros:

• Reducing competitors danger
• Access to the world markets
• Enlarging consumer base
• Large Profits
• Expedition of new international markets.
• Boost in profits from global markets.
• Profits diversification.
• Step towards being a strong international brand.

Cons:

• Extension of concerns associated with variety.
• Differences in cultures might caused a failure of the brand name especially in Asian nations.
• Low profits at preliminary levels.
• Boost in marketing expenditures to acquire market share.



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