Recommendations of Euro Takeover! 2005 (D): The White Knight: Alimento Globales Sa Case Solution

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Recommendations of Euro Takeover! 2005 (D): The White Knight: Alimento Globales Sa Case Study Solution

On the basis of above internal and external analysis of the company along with the assessment of different options, the business is recommended to think about alternative 3. As alternative 3 would enable the company to expand in international markets without any reduction in its local profits and any deterioration of its market position. The business might pursue alternative 1 which would enable the company to focus on prospective worldwide markets rather than the local markets but as the business is highly reliant on the regional markets with 90% of its stores in the US, there fore pursuing alternative 1 would result in the significant decrease in business's profits.

Aletrnative-1: Expanding International Brick and Recommendations of Euro Takeover! 2005 (D): The White Knight: Alimento Globales Sa Case Solution Stores

Expansion towards international markets through opening brand-new stores in other Europe and Asian nations with closing domestic stores is although a great alternative for increasing the international existence of the business. However, the closing of domestic stores might highly impact the profits of the company as above 90% of its stores are located domestically and closing those shops would eventually decrease the incomes of the company. Furthermore, the company has a long term market position in United States which can not be created quickly in the new markets. The choice would help the business to broaden in international markets together with the removal of problems raised in its local markets connected to its diversity. The benefits and drawbacks for Alternative 1 are noted below;

Pros:

• Expedition of new international markets.
• Increase in earnings from worldwide markets.
• Removal of concerns related to diversity.
• Income diversity.
• Step towards being a strong worldwide brand name.

Cons:

• Loss of substantial revenues from the regional markets.
• Boost in competitors.
• Differences in cultures might led to a failure of the brand specifically in Asian countries.
• Low earnings at initial levels.
• Boost in marketing expenses to get market share.

Alternative-2: Introduction of Click and Recommendations of Euro Takeover! 2005 (D): The White Knight: Alimento Globales Sa Case Analysis Stores

Alternative 2 includes the intro of online market places through creating a proper business's website. With the increased trends towards online shopping, the online shops like Amazon, Alibaba and so on might pose a serious risk to the market share of business. The competitors are shifting towards click and Recommendations of Euro Takeover! 2005 (D): The White Knight: Alimento Globales Sa Case Help shops with Gap presenting Piperline. This shift towards online markets could lower the earnings for company. In this circumstance the company might think about presenting Click and Recommendations of Euro Takeover! 2005 (D): The White Knight: Alimento Globales Sa Case Solution shops. These shops with a low requirement of funds to settle would enable the company to reach international markets, without ending its domestic shops. The advantages and disadvantages of option 2 are offered as follows;

Pros:

• Low financial investment
• Minimizing competition hazard
• Access to the world markets
• Expanding customer base
• Easy to handle
• Large Incomes
• Low Operating Costs
• Easy brand-new market entrance

Cons:

• Threat to the market position
• Elimination of brand name Uniqueness
• Elimination of the fantastic shop experience.
• Danger of decrease in elite sales.

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

Another alternative that the company could consider, is to expand towards the global markets without closing its domestic stores that adds to the huge part of incomes of the company. The pros and cons connected to Alternative 3 are provided listed below;

Pros:

• Reducing competitors threat
• Access to the world markets
• Enlarging customer base
• Big Earnings
• Expedition of new international markets.
• Boost in income from global markets.
• Income diversification.
• Step towards being a strong global brand name.

Cons:

• Continuation of concerns associated with diversity.
• Distinctions in cultures might resulted in a failure of the brand especially in Asian countries.
• Low incomes at initial levels.
• Boost in marketing expenditures to get market share.



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