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

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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 numerous alternatives, the company is advised to think about alternative 3. As alternative 3 would permit the business to expand in international markets without any decrease in its regional revenues and any deterioration of its market position. The company could pursue alternative 1 which would make it possible for the company to focus on possible worldwide markets rather than the regional markets however as the company is extremely dependent on the regional markets with 90% of its shops in the United States, there fore pursuing alternative 1 would result in the significant decline in company's profits.

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

Growth towards international markets through opening new stores in other Europe and Asian nations with closing domestic stores is although an excellent option for increasing the global presence of the company. The closing of domestic stores might extremely affect the revenues of the company as above 90% of its shops are located domestically and closing those shops would ultimately lower the earnings of the firm. The company has a long term market position in US which can not be generated quickly in the brand-new markets. The choice would assist the company to expand in worldwide markets along with the elimination of issues raised in its local markets associated with its variety. The benefits and drawbacks for Option 1 are listed below;

Pros:

• Exploration of brand-new international markets.
• Increase in profits from international markets.
• Removal of problems related to diversity.
• Income diversification.
• Action towards being a strong global brand name.

Cons:

• Loss of comprehensive revenues from the regional markets.
• Increase in competitors.
• Distinctions in cultures could resulted in a failure of the brand name specifically in Asian countries.
• Low incomes at preliminary levels.
• Increase in marketing expenditures to gain market share.

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

With the increased patterns towards online shopping, the online stores like Amazon, Alibaba etc. could pose an extreme threat to the market share of business. In this situation the company could consider introducing Click and Recommendations of Renault-Volvo Strategic Alliance (A): March Case Help shops. These stores with a low requirement of funds to settle would make it possible for the business to reach international markets, without ending its domestic stores.

Pros:

• Low financial investment
• Decreasing competition danger
• Access to the world markets
• Enlarging consumer base
• Easy to manage
• Big Incomes
• Low Operating Costs
• Easy new market entrance

Cons:

• Risk to the market position
• Removal of brand Uniqueness
• Elimination of the excellent store experience.
• Danger of decline in elite sales.

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

Another option that the company could consider, is to expand towards the global markets without closing its domestic stores that adds to the major part of revenues of the company. The advantages and disadvantages connected to Alternative 3 are offered below;

Pros:

• Reducing competition threat
• Access to the world markets
• Increasing the size of consumer base
• Large Earnings
• Exploration of brand-new global markets.
• Increase in revenue from international markets.
• Profits diversity.
• Step towards being a strong international brand.

Cons:

• Extension of issues connected to variety.
• Distinctions in cultures could led to a failure of the brand particularly in Asian countries.
• Low incomes at initial levels.
• Boost in marketing expenditures to get market share.



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