Recommendations of Renault-Volvo Strategic Alliance (B) September 1993 Case Help

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Recommendations of Renault-Volvo Strategic Alliance (B) September 1993 Case Study Solution

On the basis of above internal and external analysis of the company along with the examination of various options, the business is recommended to think about alternative 3. As alternative 3 would allow the company to broaden in worldwide markets without any decrease in its local incomes and any degeneration of its market position. The business might pursue alternative 1 which would enable the company to focus on possible international markets rather than the local markets however as the company is extremely dependent on the regional markets with 90% of its stores in the US, there fore pursuing option 1 would result in the substantial decline in business's revenue.

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

The company has a long term market position in United States which can not be generated soon in the brand-new markets. The alternative would assist the business to broaden in global markets along with the removal of issues raised in its regional markets related to its diversity.

Pros:

• Exploration of new global markets.
• Boost in profits from global markets.
• Removal of concerns related to variety.
• Earnings diversification.
• Step towards being a strong worldwide brand.

Cons:

• Loss of substantial incomes from the regional markets.
• Boost in competition.
• Differences in cultures could led to a failure of the brand especially in Asian nations.
• Low incomes at initial levels.
• Increase in marketing expenditures to get market share.

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

Alternative 2 consists of the introduction of online market locations through generating a proper company's website. With the increased trends towards online shopping, the online shops like Amazon, Alibaba etc. could pose a severe danger to the marketplace share of company. The competitors are moving towards click and Recommendations of Renault-Volvo Strategic Alliance (B) September 1993 Case Analysis stores with Gap introducing Piperline. This shift towards online markets could reduce the earnings for company. In this scenario the business might consider presenting Click and Recommendations of Renault-Volvo Strategic Alliance (B) September 1993 Case Help stores. These stores with a low requirement of funds to settle would enable the business to reach international markets, without ending its domestic stores. The advantages and disadvantages of option 2 are given as follows;

Pros:

• Low financial investment
• Reducing competition threat
• Access to the world markets
• Increasing the size of customer base
• Easy to handle
• Large Incomes
• Low Operating Costs
• Easy brand-new market entrance

Cons:

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

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

Another choice that the business could consider, is to broaden towards the international markets without closing its domestic stores that contributes to the major part of revenues of the company. The advantages and disadvantages connected to Alternative 3 are offered listed below;

Pros:

• Reducing competitors threat
• Access to the world markets
• Enlarging customer base
• Large Profits
• Exploration of brand-new international markets.
• Boost in profits from global markets.
• Earnings diversity.
• Step towards being a strong international brand.

Cons:

• Extension of problems related to variety.
• Distinctions in cultures could led to a failure of the brand name specifically in Asian nations.
• Low revenues at preliminary levels.
• Increase in marketing expenditures to gain market share.



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