Recommendations of Fonderia Di Torino S P A Case Analysis

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Recommendations of Fonderia Di Torino S P A Case Study Solution

On the basis of above internal and external analysis of the business together with the evaluation of numerous options, the company is recommended to think about alternative 3. As alternative 3 would enable the business to broaden in worldwide markets with no reduction in its regional profits and any wear and tear of its market position. By thinking about Alternative 3, the company might maintain its store experience and brand name individuality. However, it could also think about alternative 2 that could enable the business to access the markets with no prospective financial investment. The business might pursue alternative 1 which would allow the business to focus on potential worldwide markets rather than the regional markets but as the company is extremely dependent on the local markets with 90% of its stores in the United States, there fore pursuing option 1 would result in the considerable decrease in business's profits. The company is recommended to think about alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of Fonderia Di Torino S P A Case Solution Stores

The company has a long term market position in US which can not be created soon in the new markets. The option would assist the business to expand in international markets along with the elimination of problems raised in its local markets related to its variety.

Pros:

• Exploration of new global markets.
• Boost in earnings from international markets.
• Elimination of concerns related to variety.
• Profits diversification.
• Step towards being a strong global brand name.

Cons:

• Loss of extensive incomes from the local markets.
• Boost in competition.
• Distinctions in cultures might led to a failure of the brand name especially in Asian nations.
• Low earnings at preliminary levels.
• Increase in marketing expenses to gain market share.

Alternative-2: Introduction of Click and Recommendations of Fonderia Di Torino S P A Case Solution Stores

With the increased patterns towards online shopping, the online shops like Amazon, Alibaba and so on might posture a severe hazard to the market share of company. In this scenario the business might think about presenting Click and Recommendations of Fonderia Di Torino S P A Case Help shops. These stores with a low requirement of funds to settle would enable the company to reach global markets, without ending its domestic stores.

Pros:

• Low financial investment
• Decreasing competition threat
• Access to the world markets
• Expanding consumer base
• Easy to handle
• Big Earnings
• Low Operating Costs
• Easy new market entrance

Cons:

• Danger to the market position
• Elimination of brand Originality
• Removal of the excellent store experience.
• Danger of decline in elite sales.

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

Another option that the business could consider, is to broaden towards the worldwide markets without closing its domestic shops that contributes to the huge part of earnings of the company. The advantages and disadvantages connected to Alternative 3 are provided listed below;

Pros:

• Reducing competitors danger
• Access to the world markets
• Expanding consumer base
• Big Incomes
• Exploration of brand-new worldwide markets.
• Increase in revenue from international markets.
• Revenue diversification.
• Step towards being a strong global brand name.

Cons:

• Extension of concerns connected to diversity.
• Differences in cultures could caused a failure of the brand name specifically in Asian countries.
• Low profits at initial levels.
• Boost in marketing expenses to acquire market share.



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