Recommendations of Euro Takeover! 2005 (A): The Target: Hoogenfood Nv Case Solution

Home >> Darden Business School >> Euro Takeover! 2005 (A): The Target: Hoogenfood Nv >> Recommendations

Recommendations of Euro Takeover! 2005 (A): The Target: Hoogenfood Nv Case Study Solution

On the basis of above internal and external analysis of the business along with the assessment of different alternatives, the company is recommended to think about alternative 3. As alternative 3 would enable the company to broaden in worldwide markets without any reduction in its local earnings and any degeneration of its market position. The business might pursue alternative 1 which would enable the company to focus on potential global markets rather than the regional markets however as the business is extremely dependent on the regional markets with 90% of its stores in the US, there fore pursuing alternative 1 would result in the substantial decline in business's income.

Aletrnative-1: Expanding International Brick and Recommendations of Euro Takeover! 2005 (A): The Target: Hoogenfood Nv Case Help Stores

Expansion towards international markets through opening brand-new stores in other Europe and Asian countries with closing domestic shops is although a great option for increasing the worldwide presence of the company. Nevertheless, the closing of domestic shops might highly affect the earnings of the company as above 90% of its stores are located locally and closing those shops would eventually minimize the incomes of the company. The business has a long term market position in United States which can not be generated quickly in the new markets. The alternative would help the company to broaden in international markets along with the elimination of problems raised in its local markets connected to its variety. The advantages and disadvantages for Alternative 1 are listed below;

Pros:

• Expedition of new worldwide markets.
• Boost in revenue from worldwide markets.
• Elimination of issues related to variety.
• Earnings diversity.
• Action towards being a strong global brand name.

Cons:

• Loss of substantial earnings from the regional markets.
• Boost in competitors.
• Distinctions in cultures might led to a failure of the brand name particularly in Asian countries.
• Low profits at preliminary levels.
• Boost in marketing expenditures to acquire market share.

Alternative-2: Introduction of Click and Recommendations of Euro Takeover! 2005 (A): The Target: Hoogenfood Nv Case Solution Stores

Alternative 2 includes the introduction of online market locations through producing a proper company's site. With the increased patterns towards online shopping, the online stores like Amazon, Alibaba and so on might posture an extreme danger to the marketplace share of business. The rivals are shifting towards click and Recommendations of Euro Takeover! 2005 (A): The Target: Hoogenfood Nv Case Solution stores with Space presenting Piperline. This shift towards online markets might decrease the incomes for company. In this circumstance the company could think about presenting Click and Recommendations of Euro Takeover! 2005 (A): The Target: Hoogenfood Nv Case Solution shops. These stores with a low requirement of funds to settle would enable the company to reach international markets, without ending its domestic stores. The advantages and disadvantages of alternative 2 are offered as follows;

Pros:

• Low financial investment
• Reducing competitors threat
• Access to the world markets
• Enlarging consumer base
• Easy to handle
• Large Earnings
• Low Operating Expense
• Easy brand-new market entryway

Cons:

• Risk to the market position
• Removal of brand Originality
• Removal of the great shop experience.
• Risk of decrease in elite sales.

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

Another choice that the company might consider, is to broaden towards the worldwide markets without closing its domestic shops that adds to the major part of revenues of the company. The pros and cons connected to Alternative 3 are provided below;

Pros:

• Minimizing competitors threat
• Access to the world markets
• Expanding customer base
• Big Incomes
• Exploration of new global markets.
• Boost in earnings from worldwide markets.
• Revenue diversification.
• Action towards being a strong international brand.

Cons:

• Continuation of issues associated with diversity.
• Differences in cultures could led to a failure of the brand particularly in Asian countries.
• Low revenues at initial levels.
• Boost in marketing expenses to acquire market share.



This is sample work and not applicable to real case study. Please place the order on the website to get your own originally done case solution.