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

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

On the basis of above internal and external analysis of the company together with the assessment of numerous alternatives, the company is suggested to think about alternative 3. As alternative 3 would enable the business to broaden in worldwide markets without any reduction in its local revenues and any wear and tear of its market position. By considering Alternative 3, the business could preserve its store experience and brand individuality. It might likewise consider alternative 2 that could enable the business to access the markets without any possible investment. The company might pursue alternative 1 which would allow the company to focus on possible global markets rather than the regional markets however as the business is highly reliant on the regional markets with 90% of its stores in the US, there fore pursuing alternative 1 would result in the substantial decline in company's earnings. Therefore, the company is suggested to think about alternative 3.

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

Expansion towards worldwide markets through opening new stores in other Europe and Asian nations with closing domestic stores is although a great choice for increasing the global existence of the business. However, the closing of domestic stores might extremely impact the profits of the company as above 90% of its stores lie domestically and closing those stores would eventually decrease the earnings of the company. Furthermore, the company has a long term market position in US which can not be generated soon in the brand-new markets. The alternative would assist the business to broaden in global markets together with the elimination of concerns raised in its regional markets associated with its diversity. The advantages and disadvantages for Option 1 are noted below;

Pros:

• Exploration of brand-new global markets.
• Increase in income from global markets.
• Removal of concerns associated with diversity.
• Income diversification.
• Step towards being a strong global brand name.

Cons:

• Loss of substantial earnings from the regional markets.
• Increase in competitors.
• Distinctions in cultures might caused a failure of the brand especially in Asian nations.
• Low revenues at preliminary levels.
• Increase in marketing expenses to acquire market share.

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

With the increased patterns towards online shopping, the online shops like Amazon, Alibaba and so on could position a severe hazard to the market share of business. In this situation the business might think about presenting Click and Recommendations of Donaldson Lufkin And Jenrette 1995 (B) 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.

Pros:

• Low investment
• Lowering competition risk
• Access to the world markets
• Enlarging consumer base
• Easy to handle
• Large Incomes
• Low Operating Expense
• Easy brand-new market entrance

Cons:

• Risk to the market position
• Removal of brand Individuality
• Elimination of the great store experience.
• Threat of decrease in elite sales.

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

Another option that the company might consider, is to broaden towards the international markets without closing its domestic stores that adds to the major part of profits of the company. The advantages and disadvantages connected to Alternative 3 are provided listed below;

Pros:

• Decreasing competition threat
• Access to the world markets
• Enlarging customer base
• Large Revenues
• Expedition of brand-new worldwide markets.
• Increase in income from global markets.
• Revenue diversity.
• Step towards being a strong international brand.

Cons:

• Continuation of concerns associated with variety.
• Distinctions in cultures could led to a failure of the brand specifically in Asian countries.
• Low earnings at preliminary levels.
• Boost in marketing expenditures to gain market share.



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