Recommendations of Renault-Volvo Strategic Alliance (A) March 1993 Case Solution

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Recommendations of Renault-Volvo Strategic Alliance (A) March 1993 Case Study Solution

On the basis of above internal and external analysis of the business along with the examination of various options, the business is advised to think about alternative 3. As alternative 3 would allow the business to broaden in global markets without any reduction in its regional incomes and any wear and tear of its market position. The company might pursue alternative 1 which would allow the business to focus on prospective international markets rather than the regional markets however as the company is extremely reliant on the regional markets with 90% of its stores in the US, there fore pursuing alternative 1 would result in the considerable decline in company's earnings.

Aletrnative-1: Expanding International Brick and Recommendations of Renault-Volvo Strategic Alliance (A) March 1993 Case Solution Stores

The business has a long term market position in US which can not be created soon in the brand-new markets. The alternative would help the company to expand in worldwide markets along with the removal of problems raised in its regional markets related to its diversity.

Pros:

• Expedition of brand-new global markets.
• Increase in earnings from global markets.
• Removal of problems connected to variety.
• Income diversification.
• Step towards being a strong global brand name.

Cons:

• Loss of substantial profits from the regional markets.
• Boost in competitors.
• Differences in cultures could resulted in a failure of the brand particularly in Asian countries.
• Low revenues at preliminary levels.
• Boost in marketing expenditures to get market share.

Alternative-2: Introduction of Click and Recommendations of Renault-Volvo Strategic Alliance (A) March 1993 Case Help Stores

Alternative 2 consists of the intro of online market places through generating a proper business's website. With the increased patterns towards online shopping, the online shops like Amazon, Alibaba etc. could pose a serious risk to the marketplace share of company. The competitors are moving towards click and Recommendations of Renault-Volvo Strategic Alliance (A) March 1993 Case Analysis shops with Gap presenting Piperline. This shift towards online markets might lower the profits for business. In this scenario the company could think about introducing Click and Recommendations of Renault-Volvo Strategic Alliance (A) March 1993 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. The pros and cons of alternative 2 are provided as follows;

Pros:

• Low investment
• Lowering competition hazard
• Access to the world markets
• Increasing the size of consumer base
• Easy to handle
• Big Earnings
• Low Operating Costs
• Easy new market entryway

Cons:

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

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

Another alternative that the business might think about, is to broaden towards the worldwide markets without closing its domestic stores that contributes to the major part of incomes of the business. The advantages and disadvantages related to Alternative 3 are given below;

Pros:

• Minimizing competitors hazard
• Access to the world markets
• Enlarging customer base
• Large Profits
• Expedition of brand-new worldwide markets.
• Boost in income from worldwide markets.
• Income diversification.
• Step towards being a strong global brand name.

Cons:

• Extension of concerns connected to variety.
• Differences in cultures might caused a failure of the brand name specifically in Asian nations.
• Low revenues at preliminary levels.
• Boost in marketing expenses to get market share.



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