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

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

On the basis of above internal and external analysis of the business along with the examination of different options, the company is suggested to think about alternative 3. As alternative 3 would allow the business to broaden in worldwide markets without any decrease in its regional profits and any degeneration of its market position. The company could pursue alternative 1 which would enable the company to focus on prospective international markets rather than the regional markets but as the business is extremely reliant on the regional markets with 90% of its shops in the US, there fore pursuing option 1 would result in the substantial decrease in company's income.

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

Expansion towards global markets through opening brand-new stores in other Europe and Asian countries with closing domestic shops is although a good choice for increasing the global presence of the company. The closing of domestic stores could extremely affect the earnings of the firm as above 90% of its shops are situated domestically and closing those shops would eventually minimize the profits of the company. 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 business to broaden in global markets along with the removal of concerns raised in its local markets related to its diversity. The benefits and drawbacks for Option 1 are noted below;

Pros:

• Expedition of new worldwide markets.
• Increase in income from international markets.
• Removal of problems connected to variety.
• Profits diversity.
• Action towards being a strong global brand name.

Cons:

• Loss of extensive earnings from the regional markets.
• Boost in competitors.
• Differences in cultures might resulted in a failure of the brand name specifically in Asian nations.
• Low revenues at initial levels.
• Boost in marketing expenses to acquire market share.

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

Alternative 2 consists of the introduction of online market locations through generating an appropriate company's website. With the increased patterns towards online shopping, the online stores like Amazon, Alibaba etc. could present an extreme hazard to the marketplace share of business. Furthermore, the rivals are shifting towards click and Recommendations of Renault-Volvo Strategic Alliance (A) March Case Analysis shops with Gap introducing Piperline. This shift towards online markets could reduce the profits for business. In this situation the company could think about introducing Click and Recommendations of Renault-Volvo Strategic Alliance (A) March Case Help shops. These shops with a low requirement of funds to settle would make it possible for the business to reach global markets, without ending its domestic shops. The pros and cons of alternative 2 are given as follows;

Pros:

• Low financial investment
• Lowering competitors threat
• Access to the world markets
• Increasing the size of customer base
• Easy to handle
• Big Earnings
• Low Operating Costs
• Easy brand-new market entryway

Cons:

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

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

Another choice that the business might think about, is to broaden towards the global markets without closing its domestic stores that contributes to the huge part of profits of the business. The pros and cons related to Alternative 3 are provided listed below;

Pros:

• Decreasing competitors threat
• Access to the world markets
• Enlarging customer base
• Large Earnings
• Expedition of new international markets.
• Increase in profits from global markets.
• Profits diversity.
• Action towards being a strong global brand name.

Cons:

• Extension of problems connected to variety.
• Differences in cultures could caused a failure of the brand name specifically in Asian countries.
• Low incomes at initial levels.
• Boost in marketing expenses to get market share.



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