Recommendations of Euro Takeover! 2005 (C) The Lbo Sponsor Lanza E Compagnia Case Analysis

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Recommendations of Euro Takeover! 2005 (C) The Lbo Sponsor Lanza E Compagnia Case Study Analysis

On the basis of above internal and external analysis of the business along with the evaluation of different options, the company is suggested to think about alternative 3. As alternative 3 would allow the business to broaden in global markets without any reduction in its regional revenues and any degeneration of its market position. By thinking about Alternative 3, the business might keep its store experience and brand name individuality. However, it might likewise consider alternative 2 that could allow the company to access the markets with no potential financial investment. The business could pursue alternative 1 which would allow the company to focus on possible global markets rather than the local markets however as the business is highly reliant on the regional markets with 90% of its stores in the US, there fore pursuing option 1 would result in the substantial decrease in business's profits. The business is recommended to consider alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of Euro Takeover! 2005 (C) The Lbo Sponsor Lanza E Compagnia Case Help Stores

The company has a long term market position in US which can not be generated soon in the brand-new markets. The option would assist the company to expand in worldwide markets along with the removal of problems raised in its local markets related to its diversity.

Pros:

• Expedition of new global markets.
• Increase in income from global markets.
• Elimination of issues associated with diversity.
• Revenue diversity.
• Action towards being a strong international brand name.

Cons:

• Loss of extensive incomes from the local markets.
• Increase in competitors.
• Distinctions in cultures might caused a failure of the brand particularly in Asian nations.
• Low incomes at initial levels.
• Increase in marketing expenses to get market share.

Alternative-2: Introduction of Click and Recommendations of Euro Takeover! 2005 (C) The Lbo Sponsor Lanza E Compagnia Case Solution Stores

Alternative 2 includes the introduction of online market places through producing an appropriate company's website. With the increased patterns towards online shopping, the online shops like Amazon, Alibaba etc. could present an extreme threat to the marketplace share of company. Moreover, the competitors are moving towards click and Recommendations of Euro Takeover! 2005 (C) The Lbo Sponsor Lanza E Compagnia Case Analysis shops with Gap presenting Piperline. This shift towards online markets could minimize the earnings for company. In this situation the company might think about presenting Click and Recommendations of Euro Takeover! 2005 (C) The Lbo Sponsor Lanza E Compagnia Case Analysis stores. These shops with a low requirement of funds to settle would allow the business to reach international markets, without ending its domestic shops. The advantages and disadvantages of option 2 are given as follows;

Pros:

• Low investment
• Lowering competition threat
• Access to the world markets
• Enlarging consumer base
• Easy to manage
• Big Incomes
• Low Operating Expense
• Easy new market entryway

Cons:

• Hazard to the marketplace position
• Elimination of brand name Originality
• Removal of the fantastic store experience.
• Danger of decrease in elite sales.

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

Another option that the company could consider, is to expand towards the global markets without closing its domestic shops that contributes to the huge part of incomes of the business. The pros and cons associated with Alternative 3 are provided below;

Pros:

• Lowering competition danger
• Access to the world markets
• Expanding consumer base
• Large Profits
• Expedition of new global markets.
• Boost in revenue from international markets.
• Income diversification.
• Action towards being a strong worldwide brand name.

Cons:

• Continuation of issues connected to diversity.
• Distinctions in cultures could caused a failure of the brand name especially in Asian countries.
• Low incomes at preliminary levels.
• Increase in marketing expenses to get market share.



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