Recommendations of Gallery Of Furs Inc: Fur-Industry Merger Exercise Case Solution

Home >> Darden Business School >> Gallery Of Furs Inc: Fur-Industry Merger Exercise >> Recommendations

Recommendations of Gallery Of Furs Inc: Fur-Industry Merger Exercise Case Study Analysis

RecommendationsOn the basis of above internal and external analysis of the company along with the assessment of various options, the company is recommended to consider alternative 3. As alternative 3 would enable the company to broaden in international markets without any reduction in its regional incomes and any degeneration of its market position. The company might pursue alternative 1 which would enable the company to focus on potential worldwide markets rather than the local markets however as the company is highly reliant on the local markets with 90% of its shops in the US, there fore pursuing option 1 would result in the considerable decline in company's profits.

Aletrnative-1: Expanding International Brick and Recommendations of Gallery Of Furs Inc: Fur-Industry Merger Exercise Case Help Stores

International SegmentsThe business has a long term market position in US which can not be generated soon in the new markets. The option would assist the company to broaden in global markets along with the removal of problems raised in its local markets related to its diversity.

Pros:

• Exploration of brand-new global markets.
• Increase in revenue from global markets.
• Removal of concerns connected to variety.
• Revenue diversity.
• Step towards being a strong global brand name.

Cons:

• Loss of comprehensive earnings from the local markets.
• Increase in competitors.
• Distinctions in cultures might led to a failure of the brand especially in Asian countries.
• Low earnings at initial levels.
• Increase in marketing expenditures to acquire market share.

Alternative-2: Introduction of Click and Recommendations of Gallery Of Furs Inc: Fur-Industry Merger Exercise Case Solution Stores

Alternative 2 consists of the intro of online market places through creating a correct business's website. With the increased patterns towards online shopping, the online shops like Amazon, Alibaba and so on could posture an extreme threat to the marketplace share of business. Additionally, the competitors are moving towards click and Recommendations of Gallery Of Furs Inc: Fur-Industry Merger Exercise Case Help shops with Space presenting Piperline. This shift towards online markets might minimize the incomes for company. In this situation the company might consider presenting Click and Recommendations of Gallery Of Furs Inc: Fur-Industry Merger Exercise Case Analysis stores. These stores with a low requirement of funds to settle would make it possible for the company to reach worldwide markets, without ending its domestic stores. The benefits and drawbacks of alternative 2 are provided as follows;

Pros:

• Low investment
• Decreasing competitors danger
• Access to the world markets
• Expanding consumer base
• Easy to handle
• Large Incomes
• Low Operating Costs
• Easy brand-new market entryway

Cons:

• Threat to the market position
• Elimination of brand name Originality
• Removal of the excellent shop experience.
• Threat of decline in elite sales.

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

Another option that the company might consider, is to expand towards the worldwide markets without closing its domestic stores that adds to the huge part of profits of the company. The advantages and disadvantages associated with Alternative 3 are provided below;

Pros:

• Minimizing competition risk
• Access to the world markets
• Expanding customer base
• Large Earnings
• Expedition of new global markets.
• Boost in profits from international markets.
• Revenue diversity.
• Step towards being a strong global brand name.

Cons:

• Extension of concerns associated with diversity.
• Differences in cultures could resulted in a failure of the brand particularly in Asian nations.
• Low profits at initial levels.
• Boost in marketing expenses to acquire 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.