Recommendations of Fonderia Di Torino Spa Case Help

Home >> Darden Business School >> Fonderia Di Torino Spa >> Recommendations

Recommendations of Fonderia Di Torino Spa Case Study Solution

On the basis of above internal and external analysis of the company along with the examination of different options, the company is recommended to think about alternative 3. As alternative 3 would enable the business to broaden in global markets without any decrease in its local profits and any deterioration of its market position. The business might pursue alternative 1 which would allow the company to focus on prospective international markets rather than the local markets but as the business is extremely dependent on the regional markets with 90% of its shops in the United States, there fore pursuing option 1 would result in the significant decline in business's revenue.

Aletrnative-1: Expanding International Brick and Recommendations of Fonderia Di Torino Spa Case Analysis Stores

Growth towards international markets through opening new stores in other Europe and Asian countries with closing domestic stores is although an excellent option for increasing the global presence of the company. The closing of domestic stores might highly affect the incomes of the firm as above 90% of its stores are situated domestically and closing those stores would ultimately reduce the incomes of the company. Furthermore, the business has a long term market position in US which can not be created quickly in the new markets. The alternative would help the business to broaden in worldwide markets along with the removal of problems raised in its local markets related to its diversity. The advantages and disadvantages for Alternative 1 are listed below;

Pros:

• Expedition of new global markets.
• Boost in profits from worldwide markets.
• Elimination of problems connected to variety.
• Profits diversification.
• Step towards being a strong worldwide brand.

Cons:

• Loss of substantial profits from the local markets.
• Boost in competition.
• Distinctions in cultures might led to a failure of the brand especially in Asian countries.
• Low incomes at preliminary levels.
• Increase in marketing expenditures to get market share.

Alternative-2: Introduction of Click and Recommendations of Fonderia Di Torino Spa Case Analysis Stores

Alternative 2 consists of the introduction of online market locations through producing a proper business's website. With the increased trends towards online shopping, the online shops like Amazon, Alibaba and so on might position a severe danger to the market share of business. Additionally, the competitors are moving towards click and Recommendations of Fonderia Di Torino Spa Case Analysis stores with Space presenting Piperline. This shift towards online markets might decrease the revenues for company. In this circumstance the business might think about introducing Click and Recommendations of Fonderia Di Torino Spa Case Help stores. These shops with a low requirement of funds to settle would allow the business to reach global markets, without ending its domestic shops. The pros and cons of alternative 2 are offered as follows;

Pros:

• Low investment
• Minimizing competitors risk
• Access to the world markets
• Expanding customer base
• Easy to manage
• Big Earnings
• Low Operating Costs
• Easy brand-new market entrance

Cons:

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

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

Another alternative that the company might think about, is to broaden towards the global markets without closing its domestic stores that adds to the major part of incomes of the business. The advantages and disadvantages connected to Alternative 3 are offered listed below;

Pros:

• Decreasing competition threat
• Access to the world markets
• Expanding customer base
• Big Revenues
• Expedition of brand-new global markets.
• Increase in earnings from worldwide markets.
• Revenue diversity.
• Action towards being a strong worldwide brand name.

Cons:

• Extension of problems associated with variety.
• Differences in cultures might resulted in a failure of the brand name especially in Asian countries.
• Low incomes at preliminary levels.
• Increase in marketing expenditures to get 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.