Recommendations of Kestrel Ventures Llc August 1999 Case Help

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Recommendations of Kestrel Ventures Llc August 1999 Case Study Analysis

On the basis of above internal and external analysis of the business together with the evaluation of different options, the company is suggested to think about alternative 3. As alternative 3 would allow the company to broaden in global markets with no reduction in its local revenues and any deterioration of its market position. By considering Alternative 3, the company might maintain its store experience and brand originality. Nevertheless, it could also think about alternative 2 that might permit the business to access the marketplaces without any potential investment. Although, the company could pursue alternative 1 which would allow the business to concentrate on potential global markets instead of the regional markets but as the business is extremely depending on the local markets with 90% of its shops in the US, there fore pursuing option 1 would result in the considerable decrease in company's income. For that reason, the business is suggested to think about alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of Kestrel Ventures Llc August 1999 Case Solution Stores

Expansion towards global markets through opening brand-new shops in other Europe and Asian countries with closing domestic stores is although a great alternative for increasing the global existence of the company. However, the closing of domestic shops might highly impact the incomes of the company as above 90% of its stores are located locally and closing those stores would eventually minimize the revenues of the firm. The business has a long term market position in US which can not be created soon in the new markets. The alternative would assist the company to broaden in international markets along with the removal of issues raised in its local markets associated with its variety. The benefits and drawbacks for Alternative 1 are listed below;

Pros:

• Expedition of new global markets.
• Increase in profits from worldwide markets.
• Elimination of issues related to variety.
• Income diversity.
• Action towards being a strong global brand.

Cons:

• Loss of substantial earnings from the local markets.
• Boost in competition.
• Distinctions in cultures might caused a failure of the brand name specifically in Asian nations.
• Low profits at preliminary levels.
• Boost in marketing expenses to acquire market share.

Alternative-2: Introduction of Click and Recommendations of Kestrel Ventures Llc August 1999 Case Help Stores

With the increased trends towards online shopping, the online stores like Amazon, Alibaba and so on might present an extreme threat to the market share of company. In this circumstance the company might consider introducing Click and Recommendations of Kestrel Ventures Llc August 1999 Case Solution shops. These shops with a low requirement of funds to settle would allow the business to reach global markets, without ending its domestic stores.

Pros:

• Low financial investment
• Reducing competitors danger
• Access to the world markets
• Enlarging customer base
• Easy to manage
• Large Profits
• Low Operating Expense
• Easy brand-new market entrance

Cons:

• Risk to the marketplace position
• Removal of brand Uniqueness
• Removal 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 company might consider, is to broaden towards the global markets without closing its domestic shops that contributes to the major part of profits of the company. The advantages and disadvantages connected to Alternative 3 are offered listed below;

Pros:

• Decreasing competitors hazard
• Access to the world markets
• Expanding consumer base
• Large Earnings
• Exploration of brand-new worldwide markets.
• Boost in earnings from global markets.
• Revenue diversity.
• Step towards being a strong international brand name.

Cons:

• Extension of issues associated with diversity.
• Distinctions in cultures might led to a failure of the brand name specifically in Asian nations.
• Low incomes at preliminary levels.
• Increase in marketing expenses to acquire market share.



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