Recommendations of Caledonian Newspapers Ltd (B) Case Analysis

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Recommendations of Caledonian Newspapers Ltd (B) Case Study Analysis

On the basis of above internal and external analysis of the company along with the assessment of numerous alternatives, the business is suggested to think about alternative 3. As alternative 3 would permit the company to expand in international markets without any decrease in its regional revenues and any wear and tear of its market position. The company might pursue alternative 1 which would enable the business to focus on possible global markets rather than the local markets however as the business is highly dependent on the local markets with 90% of its shops in the United States, there fore pursuing alternative 1 would result in the substantial decline in business's earnings.

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

The company has a long term market position in United States which can not be generated soon in the new markets. The alternative would assist the company to broaden in worldwide markets along with the elimination of concerns raised in its regional markets related to its diversity.

Pros:

• Exploration of new international markets.
• Increase in earnings from international markets.
• Removal of problems connected to variety.
• Revenue diversity.
• Action towards being a strong worldwide brand name.

Cons:

• Loss of substantial revenues from the regional markets.
• Boost in competition.
• Distinctions in cultures could resulted in a failure of the brand especially in Asian countries.
• Low earnings at initial levels.
• Increase in marketing expenditures to gain market share.

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

Alternative 2 consists of the intro of online market locations through generating an appropriate business's site. With the increased trends towards online shopping, the online shops like Amazon, Alibaba and so on might present an extreme threat to the market share of business. Furthermore, the competitors are shifting towards click and Recommendations of Caledonian Newspapers Ltd (B) Case Help stores with Gap introducing Piperline. This shift towards online markets might minimize the revenues for business. In this scenario the company could think about introducing Click and Recommendations of Caledonian Newspapers Ltd (B) Case Help shops. 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. The advantages and disadvantages of option 2 are offered as follows;

Pros:

• Low investment
• Decreasing competition danger
• Access to the world markets
• Increasing the size of consumer base
• Easy to handle
• Big Earnings
• Low Operating Expense
• Easy brand-new market entryway

Cons:

• Threat to the marketplace position
• Removal of brand name Originality
• Removal of the fantastic store experience.
• Risk 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 expand towards the global markets without closing its domestic shops that adds to the major part of revenues of the company. The benefits and drawbacks related to Alternative 3 are offered below;

Pros:

• Decreasing competitors danger
• Access to the world markets
• Enlarging customer base
• Big Incomes
• Expedition of new global markets.
• Increase in income from international markets.
• Earnings diversification.
• Action towards being a strong worldwide brand.

Cons:

• Extension of problems connected to diversity.
• Distinctions in cultures might led to a failure of the brand name particularly in Asian countries.
• Low profits at initial levels.
• Increase in marketing expenses to get market share.



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