Recommendations of Primus Automation Division 2002 Case Analysis

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Recommendations of Primus Automation Division 2002 Case Study Solution

On the basis of above internal and external analysis of the business along with the examination of numerous options, the company is suggested to consider alternative 3. As alternative 3 would enable the company to broaden in worldwide markets without any decrease in its regional incomes and any degeneration of its market position. The company might pursue alternative 1 which would make it possible for the company to focus on potential worldwide markets rather than the local markets but as the business is extremely dependent on the regional markets with 90% of its stores in the US, there fore pursuing alternative 1 would result in the considerable decline in business's earnings.

Aletrnative-1: Expanding International Brick and Recommendations of Primus Automation Division 2002 Case Solution Stores

Expansion towards global markets through opening brand-new stores in other Europe and Asian countries with closing domestic stores is although a good choice for increasing the worldwide presence of the company. The closing of domestic shops might extremely impact the profits of the firm as above 90% of its shops are situated locally and closing those shops would ultimately lower the incomes of the firm. Furthermore, the business has a long term market position in United States which can not be created soon in the brand-new markets. The choice would help the company to broaden in worldwide markets in addition to the elimination of concerns raised in its regional markets related to its diversity. The benefits and drawbacks for Option 1 are listed below;

Pros:

• Exploration of new international markets.
• Increase in income from worldwide markets.
• Elimination of issues associated with variety.
• Revenue diversity.
• Step towards being a strong global brand name.

Cons:

• Loss of comprehensive earnings from the local markets.
• Increase in competitors.
• Distinctions in cultures could resulted in a failure of the brand specifically in Asian countries.
• Low revenues at preliminary levels.
• Increase in marketing expenses to acquire market share.

Alternative-2: Introduction of Click and Recommendations of Primus Automation Division 2002 Case Solution Stores

Alternative 2 includes the introduction of online market locations through creating an appropriate company's website. With the increased patterns towards online shopping, the online stores like Amazon, Alibaba and so on might posture a severe threat to the market share of company. The rivals are shifting towards click and Recommendations of Primus Automation Division 2002 Case Analysis shops with Space presenting Piperline. This shift towards online markets could minimize the revenues for business. In this situation the company might consider presenting Click and Recommendations of Primus Automation Division 2002 Case Help shops. These stores with a low requirement of funds to settle would enable the company to reach global markets, without ending its domestic shops. The advantages and disadvantages of alternative 2 are offered as follows;

Pros:

• Low investment
• Reducing competitors threat
• Access to the world markets
• Enlarging customer base
• Easy to manage
• Large Revenues
• Low Operating Costs
• Easy new market entrance

Cons:

• Danger to the marketplace position
• Removal of brand name Originality
• Removal of the fantastic store experience.
• Risk 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 international markets without closing its domestic stores that adds to the major part of incomes of the company. The advantages and disadvantages connected to Alternative 3 are provided listed below;

Pros:

• Decreasing competition risk
• Access to the world markets
• Enlarging consumer base
• Big Revenues
• Expedition of brand-new global markets.
• Increase in revenue from global markets.
• Profits diversity.
• Action towards being a strong international brand.

Cons:

• Continuation of problems related to variety.
• Distinctions in cultures might led to a failure of the brand name specifically in Asian nations.
• Low earnings at preliminary levels.
• Boost in marketing expenditures to acquire market share.



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