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

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

On the basis of above internal and external analysis of the company in addition to the assessment of various alternatives, the company is recommended to think about alternative 3. As alternative 3 would permit the company to broaden in worldwide markets with no decrease in its local revenues and any deterioration of its market position. By thinking about Alternative 3, the company could keep its shop experience and brand name individuality. Nevertheless, it could also consider alternative 2 that could allow the business to access the markets without any potential investment. Although, the company might pursue alternative 1 which would make it possible for the company to focus on possible worldwide markets rather than the local markets however as the business is highly depending on the local markets with 90% of its stores in the United States, there fore pursuing option 1 would lead to the significant decrease in business's profits. The company is suggested to think about alternative 3.

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

Growth towards worldwide markets through opening new shops in other Europe and Asian nations with closing domestic shops is although an excellent alternative for increasing the international existence of the company. However, the closing of domestic stores could highly impact the profits of the company as above 90% of its shops are located locally and closing those shops would eventually lower the revenues of the company. Additionally, the company has a long term market position in US which can not be generated soon in the new markets. The choice would assist the business to expand in worldwide markets along with the removal of concerns raised in its local markets related to its variety. The pros and Cons for Alternative 1 are listed below;

Pros:

• Exploration of brand-new international markets.
• Increase in income from international markets.
• Removal of concerns connected to diversity.
• Earnings diversity.
• Action towards being a strong worldwide brand name.

Cons:

• Loss of comprehensive incomes from the regional markets.
• Boost in competitors.
• Distinctions in cultures could resulted in a failure of the brand particularly in Asian nations.
• Low revenues at preliminary levels.
• Boost in marketing expenses to get market share.

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

Alternative 2 consists of the introduction of online market locations through producing a correct business's website. With the increased patterns towards online shopping, the online stores like Amazon, Alibaba and so on could present an extreme threat to the marketplace share of business. The rivals are moving towards click and Recommendations of Empirical Chemicals Ltd. (B): Merseyside And Rotterdam Projects Case Analysis stores with Gap introducing Piperline. This shift towards online markets could minimize the profits for company. In this scenario the company could consider presenting Click and Recommendations of Empirical Chemicals Ltd. (B): Merseyside And Rotterdam Projects Case Analysis stores. These stores with a low requirement of funds to settle would make it possible for the business to reach global markets, without ending its domestic stores. The benefits and drawbacks of alternative 2 are offered as follows;

Pros:

• Low financial investment
• Decreasing competitors risk
• Access to the world markets
• Expanding consumer base
• Easy to handle
• Big Incomes
• Low Operating Costs
• Easy brand-new market entryway

Cons:

• Risk to the market position
• Elimination of brand Uniqueness
• Elimination of the great store experience.
• Risk of decline in elite sales.

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

Another alternative that the business might think about, is to broaden towards the international markets without closing its domestic stores that adds to the huge part of profits of the company. The advantages and disadvantages connected to Alternative 3 are given below;

Pros:

• Lowering competition danger
• Access to the world markets
• Expanding customer base
• Big Profits
• Expedition of brand-new international markets.
• Boost in revenue from global markets.
• Earnings diversity.
• Action towards being a strong worldwide brand name.

Cons:

• Extension of problems associated with diversity.
• Differences in cultures might resulted in a failure of the brand name specifically in Asian countries.
• Low earnings at initial levels.
• Boost in marketing expenditures to gain market share.



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