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 company along with the examination of different alternatives, the business is suggested to think about alternative 3. As alternative 3 would allow the business to broaden in worldwide markets without any decrease in its local revenues and any deterioration of its market position. By thinking about Alternative 3, the company might maintain its shop experience and brand name originality. It could also consider alternative 2 that could allow the business to access the markets without any potential investment. The company might pursue alternative 1 which would enable the company to focus on prospective global markets rather than the regional markets but as the company is highly reliant on the regional markets with 90% of its shops in the US, there fore pursuing alternative 1 would result in the substantial decline in business's earnings. Therefore, the company is recommended to consider alternative 3.

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

The business has a long term market position in United States which can not be created soon in the new markets. The alternative would help the company to broaden in global markets along with the elimination of concerns raised in its regional markets related to its diversity.

Pros:

• Expedition of brand-new international markets.
• Boost in income from global markets.
• Removal of problems associated with variety.
• Income diversification.
• Step towards being a strong global brand name.

Cons:

• Loss of comprehensive profits from the regional markets.
• Increase in competition.
• Differences in cultures might resulted in a failure of the brand particularly in Asian countries.
• Low incomes at initial levels.
• Increase in marketing expenditures to get market share.

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

With the increased trends towards online shopping, the online stores like Amazon, Alibaba etc. might position an extreme danger to the market share of business. In this situation the company might think about introducing Click and Recommendations of Kestrel Ventures Llc: August 1999 Case Help shops. These shops with a low requirement of funds to settle would enable the business to reach international markets, without ending its domestic shops.

Pros:

• Low investment
• Lowering competition danger
• Access to the world markets
• Enlarging customer base
• Easy to manage
• Big Revenues
• Low Operating Expense
• Easy brand-new market entryway

Cons:

• Hazard to the marketplace position
• Removal of brand name Individuality
• Elimination of the excellent store experience.
• Danger of decline in elite sales.

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

Another alternative that the company might consider, is to expand towards the international markets without closing its domestic shops that adds to the major part of earnings of the company. The advantages and disadvantages connected to Alternative 3 are provided listed below;

Pros:

• Lowering competition hazard
• Access to the world markets
• Expanding customer base
• Large Revenues
• Exploration of new worldwide markets.
• Boost in earnings from international markets.
• Profits diversity.
• Action towards being a strong global brand.

Cons:

• Continuation of problems associated with diversity.
• Differences in cultures could led to a failure of the brand name particularly in Asian countries.
• Low revenues at preliminary levels.
• Increase in marketing expenses to acquire market share.



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