Recommendations of Fonderia Del Piemonte Spa Case Solution

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Recommendations of Fonderia Del Piemonte Spa Case Study Analysis

RecommendationsOn the basis of above internal and external analysis of the company in addition to the assessment of various options, the business is advised to think about alternative 3. As alternative 3 would enable the company to broaden in international markets with no reduction in its regional revenues and any deterioration of its market position. By considering Alternative 3, the company could maintain its store experience and brand individuality. Nevertheless, it might also consider alternative 2 that could enable the business to access the marketplaces with no possible investment. Although, the business could pursue alternative 1 which would enable the business to concentrate on potential global markets rather than the local markets but as the company is highly depending 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 profits. The business is advised to consider alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of Fonderia Del Piemonte Spa Case Solution Stores

International SegmentsGrowth towards global markets through opening brand-new shops in other Europe and Asian countries with closing domestic stores is although a great option for increasing the global presence of the company. However, the closing of domestic shops could highly affect the profits of the firm as above 90% of its shops are located locally and closing those shops would ultimately lower the earnings of the company. Moreover, the company has a long term market position in United States which can not be created soon in the new markets. The choice would help the company to expand in global markets in addition to the elimination of concerns raised in its local markets connected to its diversity. The pros and Cons for Option 1 are listed below;

Pros:

• Expedition of new global markets.
• Increase in income from global markets.
• Removal of issues connected to diversity.
• Income diversity.
• Step towards being a strong worldwide brand.

Cons:

• Loss of substantial incomes from the local markets.
• Boost in competition.
• Differences in cultures could led to a failure of the brand particularly in Asian nations.
• Low profits at preliminary levels.
• Boost in marketing expenses to get market share.

Alternative-2: Introduction of Click and Recommendations of Fonderia Del Piemonte Spa Case Analysis Stores

Alternative 2 includes the intro of online market places through creating an appropriate business's site. With the increased trends towards online shopping, the online shops like Amazon, Alibaba and so on might position a severe threat to the marketplace share of business. Additionally, the competitors are moving towards click and Recommendations of Fonderia Del Piemonte Spa Case Analysis stores with Gap introducing Piperline. This shift towards online markets might decrease the incomes for company. In this scenario the company could think about presenting Click and Recommendations of Fonderia Del Piemonte Spa Case Analysis shops. These shops with a low requirement of funds to settle would make it possible for the business to reach global markets, without ending its domestic shops. The advantages and disadvantages of alternative 2 are provided as follows;

Pros:

• Low investment
• Minimizing competitors threat
• Access to the world markets
• Enlarging consumer base
• Easy to manage
• Large Revenues
• Low Operating Expense
• Easy brand-new market entrance

Cons:

• Risk to the market position
• Removal of brand name Uniqueness
• Elimination of the great shop experience.
• Risk of decline in elite sales.

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

Another choice that the business might think about, is to broaden towards the international markets without closing its domestic shops that adds to the major part of revenues of the company. The advantages and disadvantages associated with Alternative 3 are provided below;

Pros:

• Reducing competition danger
• Access to the world markets
• Expanding customer base
• Large Revenues
• Exploration of new global markets.
• Increase in earnings from worldwide markets.
• Earnings diversification.
• Action towards being a strong worldwide brand name.

Cons:

• Continuation of problems connected to variety.
• Distinctions in cultures might led to a failure of the brand especially in Asian countries.
• Low earnings at preliminary levels.
• Boost in marketing expenses to gain market share.



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