Recommendations of Gainesboro Machine Tools Corporation Case Analysis

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Recommendations of Gainesboro Machine Tools Corporation Case Study Help

On the basis of above internal and external analysis of the company in addition to the examination of different options, the business is recommended to consider alternative 3. As alternative 3 would enable the company to broaden in global markets without any reduction in its local revenues and any deterioration of its market position. By thinking about Alternative 3, the company could maintain its shop experience and brand originality. However, it might also think about alternative 2 that might enable the company to access the markets with no possible investment. The company could pursue alternative 1 which would make it possible for the company to focus on possible international markets rather than the local markets but as the business is highly reliant on the local markets with 90% of its stores in the United States, there fore pursuing alternative 1 would result in the substantial decrease in company's income. The business is suggested to think about alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of Gainesboro Machine Tools Corporation Case Help Stores

The business has a long term market position in United States which can not be generated quickly in the brand-new markets. The choice would assist the company to expand in international markets along with the removal of problems raised in its local markets related to its diversity.

Pros:

• Exploration of new global markets.
• Boost in income from global markets.
• Removal of issues associated with diversity.
• Profits diversification.
• Step towards being a strong global brand.

Cons:

• Loss of comprehensive earnings from the local markets.
• Boost in competition.
• Differences in cultures might caused a failure of the brand particularly in Asian nations.
• Low revenues at initial levels.
• Increase in marketing expenditures to gain market share.

Alternative-2: Introduction of Click and Recommendations of Gainesboro Machine Tools Corporation Case Analysis Stores

With the increased trends towards online shopping, the online shops like Amazon, Alibaba etc. could position an extreme hazard to the market share of company. In this circumstance the business could consider presenting Click and Recommendations of Gainesboro Machine Tools Corporation Case Analysis shops. These stores with a low requirement of funds to settle would enable the company to reach worldwide markets, without ending its domestic shops.

Pros:

• Low financial investment
• Decreasing competitors threat
• Access to the world markets
• Increasing the size of consumer base
• Easy to manage
• Big Revenues
• Low Operating Costs
• Easy new market entryway

Cons:

• Risk to the market position
• Removal of brand Originality
• Removal of the excellent shop experience.
• Threat of decrease in elite sales.

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

Another alternative that the company might consider, is to broaden towards the worldwide markets without closing its domestic stores that adds to the huge part of revenues of the company. The benefits and drawbacks related to Alternative 3 are offered below;

Pros:

• Lowering competition hazard
• Access to the world markets
• Expanding consumer base
• Large Profits
• Expedition of brand-new international markets.
• Boost in profits from worldwide markets.
• Revenue diversity.
• Action towards being a strong global brand.

Cons:

• Continuation of problems associated with variety.
• Differences in cultures might led to a failure of the brand particularly in Asian nations.
• Low incomes at initial levels.
• Boost in marketing expenses to gain market share.



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