Recommendations of Brown-Forman Distillers Corporation Case Solution

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Recommendations of Brown-Forman Distillers Corporation Case Study Solution

On the basis of above internal and external analysis of the company along with the evaluation of numerous alternatives, the company is suggested to think about alternative 3. As alternative 3 would enable the business to broaden in worldwide markets without any decrease in its regional incomes and any degeneration of its market position. The company could pursue alternative 1 which would allow the business to focus on potential worldwide markets rather than the regional markets however as the business is highly dependent on the local markets with 90% of its shops in the US, there fore pursuing option 1 would result in the significant decrease in business's revenue.

Aletrnative-1: Expanding International Brick and Recommendations of Brown-Forman Distillers Corporation Case Analysis Stores

The business has a long term market position in US which can not be produced soon in the brand-new markets. The choice would assist the company to expand in international markets along with the elimination of issues raised in its regional markets related to its variety.

Pros:

• Exploration of brand-new international markets.
• Boost in revenue from worldwide markets.
• Elimination of problems connected to diversity.
• Revenue diversity.
• Action towards being a strong international brand.

Cons:

• Loss of extensive incomes from the regional markets.
• Boost in competition.
• Distinctions in cultures could caused a failure of the brand name specifically in Asian nations.
• Low revenues at preliminary levels.
• Boost in marketing expenditures to gain market share.

Alternative-2: Introduction of Click and Recommendations of Brown-Forman Distillers Corporation Case Solution Stores

Alternative 2 includes the intro of online market places through generating a proper business's site. With the increased trends towards online shopping, the online stores like Amazon, Alibaba and so on could posture a serious danger to the marketplace share of company. Moreover, the competitors are moving towards click and Recommendations of Brown-Forman Distillers Corporation Case Help stores with Space introducing Piperline. This shift towards online markets could reduce the profits for company. In this circumstance the business could think about introducing Click and Recommendations of Brown-Forman Distillers Corporation Case Analysis shops. These stores with a low requirement of funds to settle would enable the company to reach international markets, without ending its domestic stores. The pros and cons of alternative 2 are given as follows;

Pros:

• Low financial investment
• Minimizing competition hazard
• Access to the world markets
• Expanding customer base
• Easy to handle
• Large Profits
• Low Operating Expense
• Easy brand-new market entryway

Cons:

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

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

Another option that the business could think about, is to expand towards the global markets without closing its domestic shops that contributes to the huge part of earnings of the company. The benefits and drawbacks associated with Alternative 3 are given below;

Pros:

• Reducing competitors danger
• Access to the world markets
• Expanding consumer base
• Large Earnings
• Exploration of brand-new global markets.
• Boost in revenue from global markets.
• Revenue diversification.
• Step towards being a strong global brand.

Cons:

• Extension of issues connected to diversity.
• Differences in cultures could caused a failure of the brand name specifically in Asian countries.
• Low earnings at initial levels.
• Increase in marketing expenses to get market share.



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