Recommendations of Euro Takeover! 2005 (F): Eurolandbank Ag Case Help

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Recommendations of Euro Takeover! 2005 (F): Eurolandbank Ag Case Study Solution

On the basis of above internal and external analysis of the business in addition to the evaluation of numerous alternatives, the business is recommended to consider alternative 3. As alternative 3 would enable the company to broaden in global markets without any reduction in its regional earnings and any deterioration of its market position. By thinking about Alternative 3, the company could preserve its shop experience and brand originality. Nevertheless, it might also consider alternative 2 that might enable the business to access the markets with no prospective investment. The business might pursue alternative 1 which would make it possible for the company to focus on prospective international markets rather than the regional markets but as the company is extremely reliant on the regional markets with 90% of its stores in the United States, there fore pursuing alternative 1 would result in the significant decline in business's earnings. The company is advised to think about alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of Euro Takeover! 2005 (F): Eurolandbank Ag Case Help Stores

Growth towards global markets through opening new stores in other Europe and Asian countries with closing domestic shops is although an excellent choice for increasing the international presence of the business. The closing of domestic shops could extremely affect the profits of the firm as above 90% of its stores are situated locally and closing those stores would eventually decrease the incomes of the firm. The business has a long term market position in US which can not be created quickly in the new markets. The choice would help the company to expand in global markets along with the removal of issues raised in its local markets connected to its variety. The pros and Cons for Option 1 are listed below;

Pros:

• Exploration of brand-new worldwide markets.
• Boost in earnings from global markets.
• Removal of problems associated with variety.
• Profits diversification.
• Action towards being a strong international brand name.

Cons:

• Loss of substantial revenues from the local markets.
• Increase in competitors.
• Distinctions in cultures might caused a failure of the brand particularly in Asian countries.
• Low revenues at initial levels.
• Increase in marketing expenditures to gain market share.

Alternative-2: Introduction of Click and Recommendations of Euro Takeover! 2005 (F): Eurolandbank Ag Case Solution Stores

With the increased trends towards online shopping, the online shops like Amazon, Alibaba and so on might present an extreme threat to the market share of company. In this situation the company could consider introducing Click and Recommendations of Euro Takeover! 2005 (F): Eurolandbank Ag Case Help shops. These stores with a low requirement of funds to settle would enable the business to reach worldwide markets, without ending its domestic stores.

Pros:

• Low investment
• Lowering competition danger
• Access to the world markets
• Enlarging customer base
• Easy to manage
• Big Incomes
• Low Operating Costs
• Easy new market entrance

Cons:

• Hazard to the marketplace position
• Removal of brand name Uniqueness
• Elimination 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 business could consider, is to expand towards the global markets without closing its domestic shops that contributes to the major part of earnings of the company. The benefits and drawbacks connected to Alternative 3 are provided below;

Pros:

• Decreasing competition risk
• Access to the world markets
• Expanding consumer base
• Big Earnings
• Exploration of new worldwide markets.
• Boost in profits from international markets.
• Revenue diversity.
• Action towards being a strong worldwide brand name.

Cons:

• Extension of issues related to diversity.
• Differences in cultures might caused a failure of the brand name particularly in Asian nations.
• Low profits at preliminary levels.
• Increase in marketing expenses to get market share.



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