Recommendations of Diamond Chemicals Plc (A) And (B) Case Analysis

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Recommendations of Diamond Chemicals Plc (A) And (B) Case Study Solution

On the basis of above internal and external analysis of the business together with the examination of different options, the business is suggested to think about alternative 3. As alternative 3 would allow the company to expand in worldwide markets with no reduction in its regional incomes and any wear and tear of its market position. By considering Alternative 3, the business could preserve its shop experience and brand originality. However, it could likewise think about alternative 2 that might enable the company to access the markets without any potential investment. The company could pursue alternative 1 which would enable the business to focus on possible international markets rather than the regional markets but as the business is extremely reliant on the local markets with 90% of its stores in the US, there fore pursuing option 1 would result in the considerable decrease in company's income. The business is suggested to think about alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of Diamond Chemicals Plc (A) And (B) Case Help Stores

The business has a long term market position in United States which can not be produced soon in the new markets. The choice would assist the business to broaden in international markets along with the removal of issues raised in its local markets related to its variety.

Pros:

• Exploration of new international markets.
• Boost in revenue from international markets.
• Elimination of issues associated with variety.
• Income diversity.
• Action towards being a strong international brand.

Cons:

• Loss of extensive earnings from the regional markets.
• Increase in competitors.
• Distinctions in cultures could caused a failure of the brand particularly in Asian countries.
• Low revenues at initial levels.
• Boost in marketing expenditures to gain market share.

Alternative-2: Introduction of Click and Recommendations of Diamond Chemicals Plc (A) And (B) Case Solution Stores

With the increased trends towards online shopping, the online shops like Amazon, Alibaba and so on might pose an extreme danger to the market share of business. In this circumstance the company might consider presenting Click and Recommendations of Diamond Chemicals Plc (A) And (B) Case Analysis stores. These shops with a low requirement of funds to settle would make it possible for the company to reach international markets, without ending its domestic shops.

Pros:

• Low investment
• Lowering competitors threat
• Access to the world markets
• Increasing the size of consumer base
• Easy to manage
• Big Incomes
• Low Operating Expense
• Easy new market entrance

Cons:

• Threat to the marketplace position
• Removal of brand Originality
• Elimination of the great shop 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 broaden towards the worldwide markets without closing its domestic shops that adds to the major part of incomes of the business. The advantages and disadvantages related to Alternative 3 are given below;

Pros:

• Reducing competition danger
• Access to the world markets
• Increasing the size of consumer base
• Large Earnings
• Expedition of brand-new international markets.
• Increase in profits from international markets.
• Revenue diversity.
• Step towards being a strong worldwide brand.

Cons:

• Extension of concerns related to diversity.
• Distinctions in cultures could led to a failure of the brand name especially in Asian countries.
• Low revenues at initial levels.
• Boost in marketing expenditures to gain market share.



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