Recommendations of Diamond Chemicals Plc (A): The Merseyside Project Case Solution

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Recommendations of Diamond Chemicals Plc (A): The Merseyside Project Case Study Solution

On the basis of above internal and external analysis of the company along with the examination of various options, the business is recommended to think about alternative 3. As alternative 3 would permit the business to expand in global markets without any decrease in its regional revenues and any wear and tear of its market position. The business might pursue alternative 1 which would allow the company to focus on prospective global markets rather than the regional markets but as the company is highly reliant on the regional markets with 90% of its shops in the United States, there fore pursuing option 1 would result in the substantial decrease in business's income.

Aletrnative-1: Expanding International Brick and Recommendations of Diamond Chemicals Plc (A): The Merseyside Project Case Solution Stores

Expansion towards worldwide markets through opening new stores in other Europe and Asian nations with closing domestic shops is although a great alternative for increasing the global presence of the business. Nevertheless, the closing of domestic stores might extremely affect the incomes of the firm as above 90% of its shops are located locally and closing those shops would ultimately minimize the profits of the firm. The business has a long term market position in US which can not be generated quickly in the brand-new markets. The option would assist the company to expand in worldwide markets together with the elimination of problems raised in its local markets associated with its variety. The advantages and disadvantages for Alternative 1 are listed below;

Pros:

• Expedition of brand-new worldwide markets.
• Increase in profits from international markets.
• Elimination of problems connected to diversity.
• Revenue diversity.
• Action towards being a strong international brand name.

Cons:

• Loss of extensive incomes from the local markets.
• Boost in competition.
• Differences in cultures might led to a failure of the brand particularly in Asian countries.
• Low earnings at initial levels.
• Increase in marketing expenses to gain market share.

Alternative-2: Introduction of Click and Recommendations of Diamond Chemicals Plc (A): The Merseyside Project Case Help Stores

Alternative 2 consists of the introduction of online market places through generating a proper business's website. With the increased trends towards online shopping, the online shops like Amazon, Alibaba and so on could pose a severe risk to the marketplace share of business. Moreover, the rivals are moving towards click and Recommendations of Diamond Chemicals Plc (A): The Merseyside Project Case Help shops with Gap presenting Piperline. This shift towards online markets might decrease the incomes for company. In this circumstance the business could think about presenting Click and Recommendations of Diamond Chemicals Plc (A): The Merseyside Project Case Analysis shops. These shops with a low requirement of funds to settle would make it possible for the company to reach global markets, without ending its domestic stores. The advantages and disadvantages of alternative 2 are offered as follows;

Pros:

• Low investment
• Lowering competitors threat
• Access to the world markets
• Enlarging customer base
• Easy to handle
• Big Earnings
• Low Operating Costs
• Easy brand-new market entryway

Cons:

• Danger to the marketplace position
• Removal of brand name Originality
• Removal of the great shop experience.
• Threat of decrease 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 worldwide markets without closing its domestic shops that adds to the huge part of revenues of the company. The advantages and disadvantages related to Alternative 3 are given below;

Pros:

• Decreasing competition threat
• Access to the world markets
• Expanding customer base
• Large Profits
• Exploration of brand-new global markets.
• Boost in profits from worldwide markets.
• Earnings diversity.
• Step towards being a strong global brand name.

Cons:

• Extension of issues related to variety.
• Distinctions in cultures might resulted in a failure of the brand specifically in Asian nations.
• Low incomes at initial levels.
• Boost in marketing expenses to acquire market share.



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