Recommendations of Empirical Chemicals Ltd (A) The Merseyside Project Case Solution

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Recommendations of Empirical Chemicals Ltd (A) The Merseyside Project Case Study Analysis

On the basis of above internal and external analysis of the company along with the examination of numerous options, the business is advised to consider alternative 3. As alternative 3 would allow the business to broaden in worldwide markets without any decrease in its local earnings and any deterioration of its market position. The business could pursue alternative 1 which would make it possible for the company to focus on prospective worldwide markets rather than the regional markets but as the company is highly reliant on the local markets with 90% of its shops in the US, there fore pursuing alternative 1 would result in the considerable decline in company's revenue.

Aletrnative-1: Expanding International Brick and Recommendations of Empirical Chemicals Ltd (A) The Merseyside Project Case Help Stores

Expansion towards international markets through opening new shops in other Europe and Asian countries with closing domestic stores is although a great choice for increasing the international existence of the business. The closing of domestic stores might highly affect the earnings of the company as above 90% of its shops are situated locally and closing those shops would ultimately reduce the incomes of the company. The business has a long term market position in US which can not be generated soon in the brand-new markets. The alternative would help the business to expand in international markets in addition to the removal of concerns raised in its regional markets associated with its diversity. The benefits and drawbacks for Alternative 1 are noted below;

Pros:

• Expedition of brand-new worldwide markets.
• Boost in earnings from worldwide markets.
• Removal of problems connected to diversity.
• Profits diversification.
• Action towards being a strong international brand name.

Cons:

• Loss of extensive profits from the local markets.
• Boost in competitors.
• Differences in cultures could caused a failure of the brand specifically in Asian nations.
• Low incomes at initial levels.
• Boost in marketing expenditures to get market share.

Alternative-2: Introduction of Click and Recommendations of Empirical Chemicals Ltd (A) The Merseyside Project Case Solution Stores

With the increased patterns towards online shopping, the online shops like Amazon, Alibaba etc. might position a severe threat to the market share of business. In this scenario the company might consider presenting Click and Recommendations of Empirical Chemicals Ltd (A) The Merseyside Project Case Help stores. These shops with a low requirement of funds to settle would enable the company to reach international markets, without ending its domestic stores.

Pros:

• Low financial investment
• Minimizing competition threat
• Access to the world markets
• Increasing the size of customer base
• Easy to manage
• Large Incomes
• Low Operating Costs
• Easy brand-new market entrance

Cons:

• Threat to the marketplace position
• Removal of brand name Originality
• Elimination of the fantastic shop experience.
• Risk of decline in elite sales.

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

Another choice that the company could consider, is to broaden towards the worldwide markets without closing its domestic shops that contributes to the major part of earnings of the business. The benefits and drawbacks connected to Alternative 3 are provided below;

Pros:

• Decreasing competitors risk
• Access to the world markets
• Enlarging consumer base
• Large Incomes
• Expedition of brand-new worldwide markets.
• Increase in earnings from international markets.
• Earnings diversity.
• Action towards being a strong worldwide brand name.

Cons:

• Continuation of concerns connected to variety.
• Distinctions in cultures could caused a failure of the brand name particularly in Asian countries.
• Low profits at preliminary levels.
• Boost in marketing expenses to get market share.



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