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

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

On the basis of above internal and external analysis of the company along with the assessment of various options, the company is recommended to think about alternative 3. As alternative 3 would allow the business to broaden in global markets without any decrease in its regional profits and any deterioration of its market position. By considering Alternative 3, the business could keep its store experience and brand name originality. It could also consider alternative 2 that could permit the company to access the markets without any prospective investment. Although, the company might pursue alternative 1 which would make it possible for the company to focus on prospective global markets rather than the local markets however as the business is highly depending on the regional markets with 90% of its stores in the United States, there fore pursuing alternative 1 would result in the substantial decline in business's earnings. The company is advised to consider alternative 3.

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

Growth towards worldwide markets through opening brand-new stores in other Europe and Asian nations with closing domestic shops is although a good alternative for increasing the global presence of the company. Nevertheless, the closing of domestic stores might extremely affect the earnings of the company as above 90% of its shops are located domestically and closing those stores would eventually lower the incomes of the company. Furthermore, the business has a long term market position in United States which can not be produced quickly in the brand-new markets. The option would help the business to broaden in worldwide markets in addition to the removal of issues raised in its local markets associated with its diversity. The advantages and disadvantages for Alternative 1 are listed below;

Pros:

• Expedition of brand-new worldwide markets.
• Boost in profits from international markets.
• Removal of problems related to diversity.
• Revenue diversification.
• Action towards being a strong international brand.

Cons:

• Loss of substantial incomes from the local markets.
• Increase in competition.
• Distinctions in cultures could caused a failure of the brand name specifically in Asian countries.
• Low profits at preliminary levels.
• Increase in marketing expenses to get market share.

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

Alternative 2 includes the introduction of online market places through producing a correct company's site. With the increased trends towards online shopping, the online shops like Amazon, Alibaba and so on could pose an extreme risk to the marketplace share of company. The rivals are shifting towards click and Recommendations of Empirical Chemicals Ltd (A): The Merseyside Project Case Help shops with Space introducing Piperline. This shift towards online markets might minimize the earnings for company. In this situation the company could consider introducing Click and Recommendations of Empirical Chemicals Ltd (A): The Merseyside Project Case Solution shops. These stores with a low requirement of funds to settle would make it possible for the company to reach international markets, without ending its domestic shops. The pros and cons of alternative 2 are offered as follows;

Pros:

• Low financial investment
• Reducing competitors danger
• Access to the world markets
• Increasing the size of consumer base
• Easy to handle
• Big Earnings
• Low Operating Expense
• Easy new market entryway

Cons:

• Threat to the market position
• Elimination of brand name Uniqueness
• Removal of the great store experience.
• Danger of decrease in elite sales.

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

Another alternative that the business might consider, is to broaden towards the worldwide markets without closing its domestic shops that contributes to the huge part of profits of the company. The pros and cons related to Alternative 3 are given below;

Pros:

• Minimizing competitors hazard
• Access to the world markets
• Increasing the size of consumer base
• Big Earnings
• Expedition of brand-new worldwide markets.
• Boost in revenue from international markets.
• Income diversity.
• Step towards being a strong worldwide brand name.

Cons:

• Continuation of concerns connected to diversity.
• Distinctions in cultures could resulted in a failure of the brand name particularly in Asian nations.
• Low revenues at preliminary levels.
• Boost in marketing expenses to acquire market share.



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