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

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

On the basis of above internal and external analysis of the company together with the examination of various options, the business is suggested to think about alternative 3. As alternative 3 would permit the company to broaden in international markets without any reduction in its regional revenues and any wear and tear of its market position. By thinking about Alternative 3, the company might keep its shop experience and brand originality. It might also consider alternative 2 that might enable the business to access the markets without any potential investment. Although, the business could pursue alternative 1 which would allow the company to concentrate on prospective worldwide markets instead of the regional markets however as the business is extremely depending on the regional markets with 90% of its shops in the US, there fore pursuing option 1 would lead to the considerable decrease in business's income. For that reason, the company is advised to think about alternative 3.

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

Expansion towards international markets through opening new stores in other Europe and Asian countries with closing domestic stores is although a great choice for increasing the global presence of the company. Nevertheless, the closing of domestic shops could extremely impact the earnings of the firm as above 90% of its shops are located domestically and closing those stores would eventually decrease the profits of the firm. Additionally, the company has a long term market position in US which can not be produced soon in the brand-new markets. The choice would help the company to expand in global markets together with the removal of concerns raised in its regional markets associated with its variety. The advantages and disadvantages for Alternative 1 are listed below;

Pros:

• Expedition of brand-new global markets.
• Boost in revenue from global markets.
• Removal of problems related to variety.
• Income diversity.
• Action towards being a strong international brand.

Cons:

• Loss of substantial earnings from the regional markets.
• Increase in competition.
• Differences in cultures might caused a failure of the brand name specifically in Asian countries.
• Low revenues at initial levels.
• Increase in marketing expenses to get market share.

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

Alternative 2 consists of the introduction of online market places through generating a correct company's site. With the increased patterns towards online shopping, the online stores like Amazon, Alibaba etc. might present a severe hazard to the marketplace share of company. Moreover, the rivals are shifting towards click and Recommendations of Renault-Volvo Strategic Alliance (B) Case Solution shops with Gap introducing Piperline. This shift towards online markets could lower the incomes for business. In this scenario the company could consider presenting Click and Recommendations of Renault-Volvo Strategic Alliance (B) Case Analysis shops. These stores with a low requirement of funds to settle would allow the business to reach international markets, without ending its domestic stores. The pros and cons of option 2 are offered as follows;

Pros:

• Low investment
• Minimizing competition hazard
• Access to the world markets
• Enlarging consumer base
• Easy to manage
• Big Profits
• Low Operating Expense
• Easy brand-new market entrance

Cons:

• Risk to the market position
• Elimination of brand Individuality
• Removal of the fantastic store 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 expand towards the worldwide markets without closing its domestic shops that contributes to the major part of incomes of the business. The benefits and drawbacks connected to Alternative 3 are given below;

Pros:

• Reducing competition hazard
• Access to the world markets
• Expanding consumer base
• Big Revenues
• Expedition of brand-new worldwide markets.
• Increase in income from global markets.
• Profits diversity.
• Action towards being a strong worldwide brand.

Cons:

• Extension of issues connected to diversity.
• Distinctions in cultures might caused a failure of the brand especially in Asian nations.
• Low earnings at preliminary levels.
• Boost in marketing expenses to gain market share.



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