Recommendations of Groupe Lessard Ltd Fur-Industry Merger Exercise Case Analysis

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Recommendations of Groupe Lessard Ltd Fur-Industry Merger Exercise Case Study Analysis

On the basis of above internal and external analysis of the business along with the assessment of various alternatives, the business is advised to consider alternative 3. As alternative 3 would permit the company to broaden in global markets without any reduction in its local earnings and any degeneration of its market position. The company could pursue alternative 1 which would make it possible for the company 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 US, there fore pursuing option 1 would result in the considerable decrease in business's revenue.

Aletrnative-1: Expanding International Brick and Recommendations of Groupe Lessard Ltd Fur-Industry Merger Exercise Case Analysis Stores

The company has a long term market position in United States which can not be created quickly in the new markets. The alternative would help the business to expand in global markets along with the removal of concerns raised in its local markets related to its variety.

Pros:

• Exploration of brand-new global markets.
• Increase in earnings from international markets.
• Elimination of issues connected to variety.
• Profits diversity.
• Action towards being a strong worldwide brand.

Cons:

• Loss of extensive earnings from the regional markets.
• Increase in competitors.
• Differences in cultures might caused a failure of the brand name specifically in Asian nations.
• Low incomes at preliminary levels.
• Increase in marketing expenditures to get market share.

Alternative-2: Introduction of Click and Recommendations of Groupe Lessard Ltd Fur-Industry Merger Exercise Case Solution Stores

Alternative 2 includes the introduction of online market places through creating a proper company's website. With the increased trends towards online shopping, the online stores like Amazon, Alibaba etc. could present a serious risk to the market share of company. Additionally, the rivals are shifting towards click and Recommendations of Groupe Lessard Ltd Fur-Industry Merger Exercise Case Analysis shops with Space presenting Piperline. This shift towards online markets might lower the incomes for company. In this circumstance the company might consider introducing Click and Recommendations of Groupe Lessard Ltd Fur-Industry Merger Exercise Case Help stores. These stores with a low requirement of funds to settle would make it possible for the company to reach international markets, without ending its domestic stores. The pros and cons of alternative 2 are given as follows;

Pros:

• Low financial investment
• Decreasing competitors risk
• Access to the world markets
• Expanding customer base
• Easy to handle
• Large Incomes
• Low Operating Costs
• Easy new market entryway

Cons:

• Risk to the marketplace position
• Elimination of brand name Uniqueness
• Elimination of the terrific store experience.
• Risk of decrease in elite sales.

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

Another option that the company could consider, is to expand towards the global markets without closing its domestic stores that contributes to the huge part of incomes of the company. The advantages and disadvantages connected to Alternative 3 are provided below;

Pros:

• Lowering competition hazard
• Access to the world markets
• Enlarging consumer base
• Big Incomes
• Exploration of brand-new global markets.
• Increase in earnings from global markets.
• Income diversification.
• Step towards being a strong international brand name.

Cons:

• Extension of problems associated with variety.
• Distinctions in cultures could resulted in a failure of the brand particularly in Asian countries.
• Low revenues at initial levels.
• Boost in marketing expenditures to gain market share.



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