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

RecommendationsOn the basis of above internal and external analysis of the business along with the assessment of numerous alternatives, the business is suggested to consider alternative 3. As alternative 3 would permit the company to broaden in international markets without any decrease in its local earnings and any deterioration of its market position. The business might pursue alternative 1 which would enable the business to focus on possible worldwide markets rather than the regional markets but as the business is extremely dependent on the regional markets with 90% of its stores in the US, there fore pursuing option 1 would result in the considerable decline in company's income.

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

International SegmentsThe company has a long term market position in US which can not be created quickly in the new markets. The alternative would assist the company to expand in international markets along with the elimination of concerns raised in its local markets related to its variety.

Pros:

• Expedition of new worldwide markets.
• Increase in revenue from international markets.
• Removal of issues associated with variety.
• Income diversity.
• Action towards being a strong global brand.

Cons:

• Loss of substantial revenues from the regional markets.
• Boost in competitors.
• Differences in cultures might caused a failure of the brand name specifically in Asian nations.
• Low profits at initial 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

With the increased patterns towards online shopping, the online shops like Amazon, Alibaba etc. could pose an extreme hazard to the market share of company. In this situation the company might think about presenting Click and Recommendations of Astral Records Ltd North America: Some Financial Concerns Case Help shops. These stores with a low requirement of funds to settle would allow the company to reach international markets, without ending its domestic shops.

Pros:

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

Cons:

• Danger to the marketplace position
• Removal of brand Individuality
• Removal of the excellent shop experience.
• Danger of decline in elite sales.

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

Another alternative that the company might think about, is to broaden towards the global markets without closing its domestic shops that contributes to the major part of earnings of the company. The benefits and drawbacks associated with Alternative 3 are offered listed below;

Pros:

• Minimizing competition danger
• Access to the world markets
• Increasing the size of consumer base
• Big Earnings
• Exploration of new global markets.
• Boost in profits from international markets.
• Revenue diversification.
• Step towards being a strong global brand.

Cons:

• Continuation of problems related to diversity.
• Distinctions in cultures might resulted in a failure of the brand name especially in Asian nations.
• Low incomes at initial levels.
• Boost in marketing expenses to get market share.



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