Recommendations of Groupe Lessard Ltd: Fur-Industry Merger Exercise Case Solution

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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 examination of various options, the business is advised to consider alternative 3. As alternative 3 would allow the company to expand in global markets without any reduction in its local incomes and any deterioration of its market position. By considering Alternative 3, the company might preserve its shop experience and brand name originality. It could likewise consider alternative 2 that could allow the business to access the markets without any potential investment. The business could pursue alternative 1 which would enable the business to focus on potential global markets rather than the local markets however as the business is extremely reliant on the regional markets with 90% of its stores in the United States, there fore pursuing option 1 would result in the considerable decline in business's earnings. The company is suggested to think about alternative 3.

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 produced quickly in the new markets. The option would assist the business to expand in worldwide markets along with the elimination of concerns raised in its regional markets related to its diversity.

Pros:

• Expedition of brand-new global markets.
• Boost in income from international markets.
• Elimination of concerns related to diversity.
• Income diversity.
• Step towards being a strong worldwide brand name.

Cons:

• Loss of substantial revenues from the regional markets.
• Boost in competition.
• Differences in cultures might caused a failure of the brand specifically in Asian nations.
• Low incomes at initial 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 Analysis Stores

Alternative 2 includes the intro of online market places through creating a proper business's site. With the increased trends towards online shopping, the online stores like Amazon, Alibaba and so on might posture a severe threat to the market share of business. Furthermore, the competitors are moving towards click and Recommendations of Groupe Lessard Ltd: Fur-Industry Merger Exercise Case Help shops with Space introducing Piperline. This shift towards online markets could decrease the incomes for business. In this scenario the business might consider introducing Click and Recommendations of Groupe Lessard Ltd: Fur-Industry Merger Exercise Case Solution stores. These shops 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 pros and cons of alternative 2 are given as follows;

Pros:

• Low financial investment
• Reducing competition risk
• Access to the world markets
• Expanding customer base
• Easy to handle
• Big Incomes
• Low Operating Costs
• Easy brand-new market entrance

Cons:

• Risk to the market position
• Removal of brand Originality
• Elimination of the fantastic shop experience.
• Danger of decline in elite sales.

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

Another option that the business could consider, is to expand towards the worldwide markets without closing its domestic shops that contributes to the major part of earnings of the company. The pros and cons connected to Alternative 3 are offered below;

Pros:

• Reducing competitors risk
• Access to the world markets
• Expanding consumer base
• Large Earnings
• Exploration of new global markets.
• Increase in revenue from worldwide markets.
• Income diversification.
• Step towards being a strong global brand.

Cons:

• Continuation of concerns related to variety.
• Distinctions in cultures could caused a failure of the brand name particularly in Asian countries.
• Low incomes at preliminary levels.
• Increase in marketing expenditures to acquire market share.



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