Recommendations of Fur-Industry Merger - Negotiation Exercise Case Analysis

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Recommendations of Fur-Industry Merger - Negotiation Exercise Case Study Solution

On the basis of above internal and external analysis of the business together with the examination of various alternatives, the company is recommended to consider alternative 3. As alternative 3 would permit the business to broaden in worldwide markets with no reduction in its regional incomes and any wear and tear of its market position. By thinking about Alternative 3, the company could keep its shop experience and brand name originality. However, it might likewise think about alternative 2 that might allow the business to access the marketplaces without any possible investment. Although, the company might pursue alternative 1 which would enable the business to concentrate on potential global markets rather than the local markets but as the company is extremely depending on the local markets with 90% of its stores in the United States, there fore pursuing alternative 1 would lead to the considerable decline in company's revenue. Therefore, the company is suggested to think about alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of Fur-Industry Merger - Negotiation Exercise Case Solution Stores

The company has a long term market position in US which can not be produced quickly in the brand-new markets. The alternative would help the business to broaden in international markets along with the removal of issues raised in its local markets related to its variety.

Pros:

• Exploration of new global markets.
• Increase in income from global markets.
• Elimination of concerns associated with diversity.
• Income diversity.
• Action towards being a strong international brand name.

Cons:

• Loss of extensive revenues from the regional markets.
• Boost in competitors.
• Distinctions in cultures might led to a failure of the brand name particularly in Asian nations.
• Low earnings at initial levels.
• Boost in marketing expenses to gain market share.

Alternative-2: Introduction of Click and Recommendations of Fur-Industry Merger - Negotiation Exercise Case Analysis Stores

With the increased trends towards online shopping, the online stores like Amazon, Alibaba etc. might present an extreme threat to the market share of company. In this situation the company might consider presenting Click and Recommendations of Fur-Industry Merger - Negotiation Exercise Case Solution stores. These shops with a low requirement of funds to settle would enable the company to reach international markets, without ending its domestic shops.

Pros:

• Low investment
• Lowering competitors danger
• Access to the world markets
• Expanding consumer base
• Easy to manage
• Large Earnings
• Low Operating Costs
• Easy new market entrance

Cons:

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

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

Another option that the business might consider, is to broaden towards the international markets without closing its domestic shops that contributes to the major part of profits of the company. The advantages and disadvantages associated with Alternative 3 are given listed below;

Pros:

• Reducing competitors threat
• Access to the world markets
• Increasing the size of customer base
• Big Earnings
• Expedition of new worldwide markets.
• Boost in profits from international markets.
• Revenue diversification.
• Step towards being a strong global brand.

Cons:

• Extension of concerns related to variety.
• Differences in cultures could resulted in a failure of the brand especially in Asian nations.
• Low profits at initial levels.
• Increase in marketing expenditures to acquire market share.



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