Recommendations of Donaldson Lufkin And Jenrette 1995 (Abridged) Case Help

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Recommendations of Donaldson Lufkin And Jenrette 1995 (Abridged) Case Study Solution

On the basis of above internal and external analysis of the company together with the examination of various alternatives, the business is advised to think about alternative 3. As alternative 3 would enable the company to expand in global markets with no decrease in its local profits and any wear and tear of its market position. By thinking about Alternative 3, the company might maintain its store experience and brand originality. It could also consider alternative 2 that could enable the business to access the markets without any potential investment. The business might pursue alternative 1 which would allow the business to focus on prospective worldwide markets rather than the regional markets but as the business 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. The business is advised to think about alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of Donaldson Lufkin And Jenrette 1995 (Abridged) Case Solution Stores

Growth towards global markets through opening brand-new stores in other Europe and Asian countries with closing domestic shops is although a good alternative for increasing the international presence of the business. However, the closing of domestic stores might extremely impact the incomes of the firm as above 90% of its shops lie domestically and closing those stores would ultimately decrease the profits of the company. The company has a long term market position in US which can not be created soon in the new markets. The choice would help the company to expand in global markets in addition to the removal of issues raised in its local markets connected to its variety. The advantages and disadvantages for Alternative 1 are listed below;

Pros:

• Expedition of new international markets.
• Increase in profits from global markets.
• Removal of issues related to diversity.
• Income diversification.
• Action towards being a strong worldwide brand.

Cons:

• Loss of substantial revenues from the regional markets.
• Boost in competition.
• Distinctions in cultures might caused a failure of the brand specifically in Asian nations.
• Low revenues at preliminary levels.
• Increase in marketing expenses to get market share.

Alternative-2: Introduction of Click and Recommendations of Donaldson Lufkin And Jenrette 1995 (Abridged) Case Solution Stores

With the increased patterns towards online shopping, the online stores like Amazon, Alibaba and so on could posture an extreme danger to the market share of business. In this scenario the business might consider presenting Click and Recommendations of Donaldson Lufkin And Jenrette 1995 (Abridged) Case Help shops. These shops with a low requirement of funds to settle would allow the company to reach international markets, without ending its domestic shops.

Pros:

• Low financial investment
• Minimizing competition risk
• Access to the world markets
• Increasing the size of consumer base
• Easy to handle
• Large Profits
• Low Operating Costs
• Easy brand-new market entrance

Cons:

• Danger to the marketplace position
• Removal of brand Individuality
• Elimination of the terrific store experience.
• Danger of decline in elite sales.

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

Another choice that the company might consider, is to expand towards the global markets without closing its domestic shops that contributes to the major part of incomes of the business. The pros and cons connected to Alternative 3 are offered listed below;

Pros:

• Minimizing competition danger
• Access to the world markets
• Expanding customer base
• Big Earnings
• Expedition of new worldwide markets.
• Boost in revenue from worldwide markets.
• Income diversity.
• Step towards being a strong global brand name.

Cons:

• Extension of concerns connected to diversity.
• Differences in cultures might caused a failure of the brand name particularly in Asian nations.
• Low earnings at preliminary levels.
• Increase in marketing expenditures to get market share.



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