Recommendations of Jindo Corporation: Fur-Industry Merger Exercise Case Help

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Recommendations of Jindo Corporation: Fur-Industry Merger Exercise Case Study Analysis

RecommendationsOn the basis of above internal and external analysis of the business along with the assessment of various options, the company is advised to consider alternative 3. As alternative 3 would enable the company to expand in worldwide markets without any decrease in its local incomes and any deterioration of its market position. The business could pursue alternative 1 which would enable the business to focus on prospective global markets rather than the regional markets however as the business is extremely dependent on the regional markets with 90% of its stores in the United States, there fore pursuing option 1 would result in the significant decline in business's income.

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

International SegmentsThe company has a long term market position in United States which can not be created soon in the brand-new markets. The alternative would help the company to expand in global markets along with the elimination of concerns raised in its local markets related to its diversity.

Pros:

• Exploration of brand-new worldwide markets.
• Boost in earnings from global markets.
• Removal of problems associated with variety.
• Earnings diversity.
• Action towards being a strong international brand name.

Cons:

• Loss of substantial profits from the regional markets.
• Increase in competitors.
• Differences in cultures could resulted in a failure of the brand specifically in Asian nations.
• Low profits at initial levels.
• Increase in marketing expenses to acquire market share.

Alternative-2: Introduction of Click and Recommendations of Jindo Corporation: Fur-Industry Merger Exercise Case Solution Stores

With the increased trends towards online shopping, the online shops like Amazon, Alibaba and so on might pose an extreme threat to the market share of company. In this situation the business could consider presenting Click and Recommendations of Jindo Corporation: Fur-Industry Merger Exercise Case Analysis shops. These shops with a low requirement of funds to settle would make it possible for the business to reach worldwide markets, without ending its domestic shops.

Pros:

• Low investment
• Minimizing competitors danger
• Access to the world markets
• Expanding consumer base
• Easy to handle
• Big Profits
• Low Operating Expense
• Easy brand-new market entryway

Cons:

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

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

Another choice that the company might consider, is to broaden towards the international markets without closing its domestic shops that adds to the huge part of revenues of the business. The benefits and drawbacks related to Alternative 3 are provided listed below;

Pros:

• Decreasing competitors hazard
• Access to the world markets
• Expanding customer base
• Big Earnings
• Exploration of brand-new worldwide markets.
• Increase in income from global markets.
• Income diversification.
• Step towards being a strong worldwide brand name.

Cons:

• Continuation of issues connected to diversity.
• Differences in cultures might resulted in a failure of the brand name specifically in Asian countries.
• Low incomes at preliminary levels.
• Boost in marketing expenditures to acquire market share.



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