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

Home >> Darden Business School >> Renault-Volvo Strategic Alliance (B): September 1993 >> Recommendations

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

RecommendationsOn the basis of above internal and external analysis of the business along with the evaluation of different options, the business is recommended to think about alternative 3. As alternative 3 would permit the business to broaden in global markets without any decrease in its regional profits and any wear and tear of its market position. By considering Alternative 3, the company might preserve its shop experience and brand name uniqueness. Nevertheless, it could also think about alternative 2 that might allow the business to access the marketplaces with no possible investment. The business might pursue alternative 1 which would enable the company to focus on potential worldwide markets rather than the regional markets however as the business is highly dependent on the local markets with 90% of its stores in the US, there fore pursuing option 1 would result in the considerable decline in company's income. For that reason, the business is suggested to think about alternative 3.

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

International SegmentsThe business has a long term market position in United States which can not be generated quickly in the new markets. The alternative would assist the company to expand in worldwide markets along with the elimination of concerns raised in its local markets related to its diversity.

Pros:

• Expedition of new global markets.
• Boost in profits from international markets.
• Elimination of problems associated with variety.
• Earnings diversification.
• Action towards being a strong worldwide brand name.

Cons:

• Loss of extensive revenues from the local markets.
• Boost in competitors.
• Differences in cultures could resulted in a failure of the brand particularly in Asian nations.
• Low revenues at preliminary levels.
• Increase in marketing expenses to gain market share.

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

With the increased patterns towards online shopping, the online stores like Amazon, Alibaba etc. could present a serious danger to the market share of business. In this circumstance the business could consider introducing Click and Recommendations of Renault-Volvo Strategic Alliance (B): September 1993 Case Solution shops. These shops with a low requirement of funds to settle would enable the company to reach global markets, without ending its domestic shops.

Pros:

• Low financial investment
• Decreasing competition threat
• Access to the world markets
• Expanding consumer base
• Easy to manage
• Large Earnings
• Low Operating Expense
• Easy brand-new market entryway

Cons:

• Hazard to the market position
• Removal of brand Uniqueness
• Removal of the fantastic store experience.
• Risk of decrease in elite sales.

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

Another choice that the business might think about, is to expand towards the international markets without closing its domestic shops that adds to the huge part of incomes of the business. The pros and cons related to Alternative 3 are offered below;

Pros:

• Minimizing competition risk
• Access to the world markets
• Enlarging consumer base
• Big Revenues
• Exploration of new international markets.
• Boost in profits from global markets.
• Profits diversity.
• Action towards being a strong global brand.

Cons:

• Extension of issues related to variety.
• Differences in cultures might led to a failure of the brand specifically in Asian nations.
• Low incomes at initial levels.
• Increase in marketing expenditures to get market share.



This is sample work and not applicable to real case study. Please place the order on the website to get your own originally done case solution.