Recommendations of Caledonian Newspapers Ltd (A) Case Solution

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Recommendations of Caledonian Newspapers Ltd (A) Case Study Help

On the basis of above internal and external analysis of the business along with the assessment of various options, the business is suggested to consider alternative 3. As alternative 3 would enable the company to broaden in global markets without any reduction in its regional revenues and any deterioration of its market position. The company could pursue alternative 1 which would enable the company to focus on prospective global markets rather than the local markets but as the company is highly dependent on the regional markets with 90% of its shops in the United States, there fore pursuing alternative 1 would result in the considerable decline in company's earnings.

Aletrnative-1: Expanding International Brick and Recommendations of Caledonian Newspapers Ltd (A) Case Solution Stores

The business has a long term market position in United States which can not be produced soon in the brand-new markets. The option would assist the company to expand in worldwide markets along with the removal of concerns raised in its regional markets related to its diversity.

Pros:

• Exploration of brand-new global markets.
• Boost in earnings from worldwide markets.
• Elimination of issues connected to diversity.
• Earnings diversification.
• Step towards being a strong global brand.

Cons:

• Loss of substantial profits from the local markets.
• Increase in competitors.
• Distinctions in cultures could led to a failure of the brand name particularly in Asian nations.
• Low profits at preliminary levels.
• Increase in marketing expenditures to acquire market share.

Alternative-2: Introduction of Click and Recommendations of Caledonian Newspapers Ltd (A) Case Analysis Stores

With the increased patterns towards online shopping, the online stores like Amazon, Alibaba and so on might pose an extreme risk to the market share of company. In this situation the company could think about introducing Click and Recommendations of Caledonian Newspapers Ltd (A) Case Help stores. These shops with a low requirement of funds to settle would make it possible for the company to reach worldwide markets, without ending its domestic shops.

Pros:

• Low financial investment
• Lowering competition hazard
• Access to the world markets
• Enlarging consumer base
• Easy to manage
• Large Revenues
• Low Operating Costs
• Easy brand-new market entrance

Cons:

• Risk to the marketplace position
• Elimination of brand Originality
• Removal of the excellent store experience.
• Danger of decline in elite sales.

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

Another option that the company could consider, is to broaden towards the international markets without closing its domestic shops that adds to the major part of revenues of the business. The advantages and disadvantages related to Alternative 3 are given below;

Pros:

• Minimizing competitors risk
• Access to the world markets
• Enlarging customer base
• Big Revenues
• Expedition of new global markets.
• Boost in revenue from worldwide markets.
• Revenue diversification.
• Action towards being a strong international brand.

Cons:

• Extension of problems associated with variety.
• Distinctions in cultures could resulted in a failure of the brand specifically in Asian nations.
• Low revenues at preliminary levels.
• Increase in marketing expenditures to gain market share.



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