Recommendations of Euro Takeover! 2005 (B): The Raider: Finance Mondiale Sa Case Analysis

Home >> Darden Business School >> Euro Takeover! 2005 (B): The Raider: Finance Mondiale Sa >> Recommendations

Recommendations of Euro Takeover! 2005 (B): The Raider: Finance Mondiale Sa Case Study Help

RecommendationsOn the basis of above internal and external analysis of the company along with the assessment of various alternatives, the company is suggested to think about alternative 3. As alternative 3 would permit the business to expand in global markets with no decrease in its regional revenues and any degeneration of its market position. By considering Alternative 3, the business could maintain its shop experience and brand name originality. It might also consider alternative 2 that could enable the business to access the markets without any prospective financial investment. The business might pursue alternative 1 which would make it possible for the business to focus on possible international markets rather than the local markets but as the business is extremely dependent on the regional markets with 90% of its stores in the US, there fore pursuing option 1 would result in the substantial decline in business's profits. Therefore, the company is recommended to think about alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of Euro Takeover! 2005 (B): The Raider: Finance Mondiale Sa Case Solution Stores

International SegmentsExpansion towards worldwide markets through opening brand-new shops in other Europe and Asian countries with closing domestic shops is although a good option for increasing the international existence of the business. The closing of domestic shops could highly impact the earnings of the company as above 90% of its stores are situated locally and closing those stores would ultimately lower the incomes of the company. The company has a long term market position in United States which can not be generated quickly in the brand-new markets. The alternative would help the business to expand in worldwide markets in addition to the elimination of problems raised in its local markets associated with its variety. The benefits and drawbacks for Option 1 are listed below;

Pros:

• Expedition of new worldwide markets.
• Boost in income from global markets.
• Elimination of concerns connected to variety.
• Revenue diversification.
• Action towards being a strong global brand name.

Cons:

• Loss of comprehensive revenues from the regional markets.
• Increase in competitors.
• Differences in cultures might caused a failure of the brand particularly in Asian countries.
• Low profits at preliminary levels.
• Increase in marketing expenses to get market share.

Alternative-2: Introduction of Click and Recommendations of Euro Takeover! 2005 (B): The Raider: Finance Mondiale Sa Case Solution Stores

Alternative 2 includes the introduction of online market locations through creating a correct company's site. With the increased patterns towards online shopping, the online stores like Amazon, Alibaba and so on could present a serious threat to the marketplace share of business. The rivals are moving towards click and Recommendations of Euro Takeover! 2005 (B): The Raider: Finance Mondiale Sa Case Help stores with Space introducing Piperline. This shift towards online markets might decrease the earnings for business. In this scenario the business might consider introducing Click and Recommendations of Euro Takeover! 2005 (B): The Raider: Finance Mondiale Sa Case Help stores. These stores with a low requirement of funds to settle would allow the company to reach international markets, without ending its domestic stores. The pros and cons of option 2 are provided as follows;

Pros:

• Low financial investment
• Reducing competition risk
• Access to the world markets
• Expanding consumer base
• Easy to handle
• Large Incomes
• Low Operating Expense
• Easy brand-new market entryway

Cons:

• Danger to the marketplace position
• Removal of brand Uniqueness
• Elimination of the excellent store experience.
• Risk of decrease in elite sales.

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

Another option that the business might consider, is to expand towards the worldwide markets without closing its domestic shops that contributes to the major part of incomes of the business. The advantages and disadvantages connected to Alternative 3 are given below;

Pros:

• Reducing competitors hazard
• Access to the world markets
• Enlarging customer base
• Large Profits
• Expedition of new global markets.
• Increase in earnings from international markets.
• Revenue diversification.
• Action towards being a strong global brand name.

Cons:

• Extension of issues associated with diversity.
• Differences in cultures might led to a failure of the brand particularly in Asian nations.
• Low incomes at initial levels.
• Increase 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.