Recommendations of Brazilian Beer Merger Negotiations: Companhia Cervejaria Brahma Sa Case Analysis

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Recommendations of Brazilian Beer Merger Negotiations: Companhia Cervejaria Brahma Sa Case Study Analysis

RecommendationsOn the basis of above internal and external analysis of the company together with the evaluation of numerous alternatives, the company is advised to consider alternative 3. As alternative 3 would enable the business to broaden in international markets with no reduction in its regional profits and any wear and tear of its market position. By thinking about Alternative 3, the business could keep its store experience and brand individuality. It might also consider alternative 2 that could permit the business to access the markets without any potential investment. The company could pursue alternative 1 which would enable the business to focus on potential global markets rather than the local markets but as the business is highly reliant on the local markets with 90% of its stores in the US, there fore pursuing option 1 would result in the considerable decline in business's earnings. Therefore, the company is advised to think about alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of Brazilian Beer Merger Negotiations: Companhia Cervejaria Brahma Sa Case Solution Stores

International SegmentsThe company has a long term market position in US which can not be generated soon in the brand-new markets. The choice would help the business to broaden in worldwide markets along with the removal of problems raised in its local markets related to its diversity.

Pros:

• Exploration of new worldwide markets.
• Increase in earnings from international markets.
• Removal of concerns connected to diversity.
• Income diversity.
• Step towards being a strong global brand.

Cons:

• Loss of substantial earnings from the local markets.
• Increase in competitors.
• Distinctions in cultures could caused a failure of the brand name specifically in Asian countries.
• Low incomes at preliminary levels.
• Increase in marketing expenses to gain market share.

Alternative-2: Introduction of Click and Recommendations of Brazilian Beer Merger Negotiations: Companhia Cervejaria Brahma Sa Case Analysis Stores

Alternative 2 includes the introduction of online market places through producing a correct company's site. With the increased patterns towards online shopping, the online shops like Amazon, Alibaba etc. might pose a severe risk to the marketplace share of company. The competitors are moving towards click and Recommendations of Brazilian Beer Merger Negotiations: Companhia Cervejaria Brahma Sa Case Help stores with Space presenting Piperline. This shift towards online markets might minimize the earnings for business. In this circumstance the business might consider presenting Click and Recommendations of Brazilian Beer Merger Negotiations: Companhia Cervejaria Brahma Sa Case Solution shops. These stores with a low requirement of funds to settle would enable the company to reach global markets, without ending its domestic stores. The advantages and disadvantages of option 2 are given as follows;

Pros:

• Low financial investment
• Reducing competition danger
• Access to the world markets
• Enlarging customer base
• Easy to manage
• Large Incomes
• Low Operating Costs
• Easy brand-new market entryway

Cons:

• Threat to the marketplace position
• Elimination of brand Originality
• Elimination of the excellent shop experience.
• Risk of decrease in elite sales.

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

Another choice that the company could consider, is to expand towards the international markets without closing its domestic shops that contributes to the major part of earnings of the business. The pros and cons related to Alternative 3 are offered listed below;

Pros:

• Minimizing competition danger
• Access to the world markets
• Expanding customer base
• Large Incomes
• Exploration of new worldwide markets.
• Boost in revenue from worldwide markets.
• Profits diversification.
• Step towards being a strong international brand.

Cons:

• Continuation of concerns related to variety.
• Distinctions in cultures might caused a failure of the brand particularly in Asian nations.
• Low incomes at preliminary levels.
• Boost in marketing expenses to acquire market share.



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