Recommendations of Fighting The Financial Crisis Of 2008 Case Solution

Home >> Darden Business School >> Fighting The Financial Crisis Of 2008 >> Recommendations

Recommendations of Fighting The Financial Crisis Of 2008 Case Study Help

On the basis of above internal and external analysis of the company together with the examination of various alternatives, the company is recommended to consider alternative 3. As alternative 3 would enable the company to expand in international markets with no decrease in its local revenues and any degeneration of its market position. By thinking about Alternative 3, the company might preserve its store experience and brand individuality. Nevertheless, it might likewise think about alternative 2 that could enable the business to access the markets without any possible investment. The business could pursue alternative 1 which would allow the business to focus on possible worldwide markets rather than the regional markets but as the business is extremely reliant on the local markets with 90% of its stores in the US, there fore pursuing option 1 would result in the significant decrease in company's income. For that reason, the business is recommended to consider alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of Fighting The Financial Crisis Of 2008 Case Help Stores

Expansion towards global markets through opening new stores in other Europe and Asian nations with closing domestic stores is although an excellent choice for increasing the global presence of the company. However, the closing of domestic stores could extremely affect the earnings of the firm as above 90% of its stores lie domestically and closing those shops would eventually lower the revenues of the company. Additionally, the company has a long term market position in United States which can not be produced soon in the brand-new markets. The option would assist the business to broaden in global markets together with the elimination of problems raised in its local markets connected to its variety. The pros and Cons for Alternative 1 are noted below;

Pros:

• Expedition of brand-new worldwide markets.
• Increase in earnings from global markets.
• Removal of problems related to diversity.
• Income diversification.
• Step towards being a strong worldwide brand.

Cons:

• Loss of extensive incomes from the local markets.
• Boost in competitors.
• Differences in cultures might caused a failure of the brand particularly in Asian countries.
• Low earnings at preliminary levels.
• Boost in marketing expenditures to gain market share.

Alternative-2: Introduction of Click and Recommendations of Fighting The Financial Crisis Of 2008 Case Help Stores

Alternative 2 consists of the introduction of online market locations through producing a correct business's site. With the increased trends towards online shopping, the online shops like Amazon, Alibaba etc. could present a serious risk to the marketplace share of business. Additionally, the competitors are moving towards click and Recommendations of Fighting The Financial Crisis Of 2008 Case Solution shops with Gap presenting Piperline. This shift towards online markets could lower the earnings for company. In this situation the business could think about introducing Click and Recommendations of Fighting The Financial Crisis Of 2008 Case Help stores. These stores with a low requirement of funds to settle would enable the business to reach international markets, without ending its domestic stores. The advantages and disadvantages of option 2 are provided as follows;

Pros:

• Low investment
• Minimizing competitors risk
• Access to the world markets
• Expanding customer base
• Easy to manage
• Big Incomes
• Low Operating Expense
• Easy new market entrance

Cons:

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

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

Another option that the business might think about, is to expand towards the worldwide markets without closing its domestic stores that adds to the major part of revenues of the company. The benefits and drawbacks connected to Alternative 3 are offered below;

Pros:

• Reducing competition danger
• Access to the world markets
• Enlarging consumer base
• Big Profits
• Exploration of new international markets.
• Boost in income from international markets.
• Revenue diversity.
• Action towards being a strong worldwide brand name.

Cons:

• Extension of issues associated with diversity.
• Differences in cultures might led to a failure of the brand name specifically in Asian nations.
• Low revenues at initial levels.
• Increase in marketing expenditures to gain 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.