Recommendations of Fonderia Del Piemonte Spa Case Solution

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Recommendations of Fonderia Del Piemonte Spa Case Study Analysis

On the basis of above internal and external analysis of the business along with the assessment of numerous options, the company is advised to think about alternative 3. As alternative 3 would enable the company to broaden in global markets without any decrease in its regional revenues and any wear and tear of its market position. The business might pursue alternative 1 which would make it possible for the company to focus on prospective international markets rather than the local markets but as the company is extremely reliant on the local markets with 90% of its shops in the US, there fore pursuing option 1 would result in the substantial decrease in business's earnings.

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

Expansion towards worldwide markets through opening new shops in other Europe and Asian countries with closing domestic shops is although an excellent option for increasing the worldwide existence of the business. However, the closing of domestic stores could highly affect the profits of the company as above 90% of its shops lie locally and closing those stores would eventually minimize the incomes of the company. The company has a long term market position in US which can not be generated quickly in the brand-new markets. The choice would assist the business to expand in global markets together with the removal of problems raised in its local markets related to its variety. The benefits and drawbacks for Alternative 1 are listed below;

Pros:

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

Cons:

• Loss of substantial profits from the local markets.
• Boost in competitors.
• Differences in cultures could led to a failure of the brand name specifically in Asian countries.
• Low revenues at preliminary levels.
• Increase in marketing expenses to get market share.

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

With the increased trends towards online shopping, the online stores like Amazon, Alibaba and so on could posture a serious threat to the market share of company. In this situation the business could consider presenting Click and Recommendations of Fonderia Del Piemonte Spa Case Analysis shops. These stores with a low requirement of funds to settle would make it possible for the company to reach global markets, without ending its domestic stores.

Pros:

• Low financial investment
• Reducing competition hazard
• Access to the world markets
• Expanding consumer base
• Easy to handle
• Large Revenues
• Low Operating Costs
• Easy new market entrance

Cons:

• Danger to the marketplace position
• Removal of brand name Uniqueness
• Removal of the terrific store experience.
• Risk of decrease in elite sales.

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

Another alternative that the company could consider, is to broaden towards the international markets without closing its domestic shops that contributes to the huge part of earnings of the company. The pros and cons associated with Alternative 3 are offered below;

Pros:

• Lowering competition hazard
• Access to the world markets
• Enlarging consumer base
• Big Earnings
• Exploration of new global markets.
• Increase in income from global markets.
• Revenue diversification.
• Step towards being a strong international brand.

Cons:

• Extension of problems associated with variety.
• Differences in cultures could caused a failure of the brand name particularly in Asian countries.
• Low incomes at initial levels.
• Boost in marketing expenses to get market share.



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