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

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

On the basis of above internal and external analysis of the business along with the assessment of various options, the company is advised to consider alternative 3. As alternative 3 would allow the company to broaden in global markets without any decrease in its local profits and any degeneration of its market position. The company could pursue alternative 1 which would allow 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 United States, there fore pursuing alternative 1 would result in the considerable decline in business's revenue.

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

The business has a long term market position in United States which can not be created soon in the brand-new markets. The alternative would assist the business to expand in global markets along with the elimination of problems raised in its local markets related to its diversity.

Pros:

• Exploration of brand-new international markets.
• Increase in revenue from global markets.
• Elimination of concerns associated with diversity.
• Income diversification.
• Action towards being a strong worldwide brand.

Cons:

• Loss of comprehensive incomes from the local markets.
• Boost in competitors.
• Distinctions in cultures could caused a failure of the brand name particularly in Asian nations.
• Low incomes at preliminary levels.
• Increase in marketing expenditures to get market share.

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

Alternative 2 consists of the intro of online market locations through generating a correct business's site. With the increased trends towards online shopping, the online shops like Amazon, Alibaba etc. could position an extreme hazard to the market share of business. The rivals are moving towards click and Recommendations of Euro Takeover! 2005 (C): The Lbo Sponsor: Lanza E Compagnia Case Help stores with Gap presenting Piperline. This shift towards online markets might reduce the revenues for business. In this scenario the business might think about introducing Click and Recommendations of Euro Takeover! 2005 (C): The Lbo Sponsor: Lanza E Compagnia Case Analysis shops. These shops with a low requirement of funds to settle would allow the company to reach worldwide markets, without ending its domestic stores. The pros and cons of alternative 2 are offered as follows;

Pros:

• Low financial investment
• Minimizing competition danger
• Access to the world markets
• Expanding customer base
• Easy to handle
• Big Revenues
• Low Operating Expense
• Easy new market entrance

Cons:

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

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

Another choice that the business could consider, is to expand towards the international markets without closing its domestic stores that adds to the major part of profits of the company. The advantages and disadvantages related to Alternative 3 are given below;

Pros:

• Decreasing competitors hazard
• Access to the world markets
• Increasing the size of customer base
• Large Profits
• Exploration of new global markets.
• Boost in revenue from international markets.
• Profits diversification.
• Action towards being a strong global brand.

Cons:

• Extension of problems connected to variety.
• Distinctions in cultures could caused a failure of the brand specifically in Asian countries.
• Low incomes at preliminary levels.
• Increase in marketing expenses to gain market share.



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