Recommendations of Empirical Chemicals Ltd (B): Merseyside And Rotterdam Projects Case Analysis

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Recommendations of Empirical Chemicals Ltd (B): Merseyside And Rotterdam Projects Case Study Analysis

On the basis of above internal and external analysis of the business along with the examination of numerous options, the company is recommended to think about alternative 3. As alternative 3 would allow the company to expand in worldwide markets with no decrease in its regional earnings and any wear and tear of its market position. By considering Alternative 3, the business could preserve its shop experience and brand name originality. It could also think about alternative 2 that might enable the business to access the markets without any possible financial investment. Although, the company might pursue alternative 1 which would make it possible for the business to concentrate on potential worldwide markets rather than the local markets but as the company is highly depending on the local markets with 90% of its shops in the United States, there fore pursuing option 1 would lead to the considerable decline in company's income. For that reason, the company is recommended to think about alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of Empirical Chemicals Ltd (B): Merseyside And Rotterdam Projects Case Analysis Stores

Growth towards worldwide markets through opening new shops in other Europe and Asian countries with closing domestic shops is although a good alternative for increasing the international existence of the company. The closing of domestic stores might extremely affect the earnings of the firm as above 90% of its shops are situated domestically and closing those shops would eventually minimize the earnings of the company. Furthermore, the business has a long term market position in US which can not be created quickly in the brand-new markets. The option would help the business to expand in international markets together with the elimination of problems raised in its regional markets associated with its diversity. The advantages and disadvantages for Alternative 1 are noted below;

Pros:

• Exploration of brand-new international markets.
• Boost in revenue from global markets.
• Elimination of issues associated with variety.
• Income diversification.
• Step towards being a strong worldwide brand name.

Cons:

• Loss of substantial profits from the local markets.
• Boost in competition.
• Differences in cultures might caused a failure of the brand especially in Asian nations.
• Low incomes at preliminary levels.
• Boost in marketing expenses to gain market share.

Alternative-2: Introduction of Click and Recommendations of Empirical Chemicals Ltd (B): Merseyside And Rotterdam Projects Case Analysis Stores

Alternative 2 includes the intro of online market places through producing an appropriate business's site. With the increased trends towards online shopping, the online stores like Amazon, Alibaba and so on might pose an extreme danger to the market share of business. The rivals are shifting towards click and Recommendations of Empirical Chemicals Ltd (B): Merseyside And Rotterdam Projects Case Solution shops with Gap presenting Piperline. This shift towards online markets could minimize the earnings for company. In this circumstance the business might consider presenting Click and Recommendations of Empirical Chemicals Ltd (B): Merseyside And Rotterdam Projects Case Analysis shops. These stores with a low requirement of funds to settle would make it possible for the company to reach global markets, without ending its domestic shops. The pros and cons of option 2 are provided as follows;

Pros:

• Low investment
• Reducing competitors danger
• Access to the world markets
• Expanding consumer base
• Easy to manage
• Large Earnings
• Low Operating Expense
• Easy new market entrance

Cons:

• Risk to the marketplace position
• Elimination of brand name Individuality
• Removal of the terrific shop experience.
• Threat of decrease 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 stores that adds to the huge part of earnings of the business. The advantages and disadvantages associated with Alternative 3 are provided below;

Pros:

• Minimizing competitors hazard
• Access to the world markets
• Enlarging customer base
• Big Profits
• Expedition of brand-new worldwide markets.
• Increase in profits from global markets.
• Income diversity.
• Step towards being a strong global brand.

Cons:

• Extension of issues connected to variety.
• Distinctions in cultures could resulted in a failure of the brand name specifically in Asian nations.
• Low profits at preliminary levels.
• Boost in marketing expenditures to acquire market share.



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