Recommendations of Revco Ds Inc (B) Case Analysis

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Recommendations of Revco Ds Inc (B) Case Study Analysis

On the basis of above internal and external analysis of the company along with the assessment of different options, the company is advised to consider alternative 3. As alternative 3 would enable the business to broaden in global markets without any reduction in its local profits and any degeneration of its market position. The business could pursue alternative 1 which would allow the company to focus on possible international markets rather than the local markets however as the company is extremely reliant on the regional markets with 90% of its stores in the United States, there fore pursuing option 1 would result in the significant decline in company's earnings.

Aletrnative-1: Expanding International Brick and Recommendations of Revco Ds Inc (B) Case Help Stores

Growth towards global markets through opening new stores in other Europe and Asian countries with closing domestic shops is although an excellent alternative for increasing the worldwide existence of the company. The closing of domestic shops could extremely affect the profits of the company as above 90% of its shops are situated locally and closing those stores would eventually minimize the incomes of the company. Moreover, the business has a long term market position in United States which can not be produced quickly in the brand-new markets. The option would assist the company to expand in international markets together with the elimination of issues raised in its regional markets connected to its diversity. The pros and Cons for Alternative 1 are listed below;

Pros:

• Exploration of brand-new global markets.
• Boost in earnings from worldwide markets.
• Elimination of problems related to diversity.
• Earnings diversification.
• Action towards being a strong international brand name.

Cons:

• Loss of comprehensive revenues from the regional markets.
• Increase in competitors.
• Distinctions in cultures might resulted in a failure of the brand name especially in Asian nations.
• Low incomes at initial levels.
• Increase in marketing expenses to get market share.

Alternative-2: Introduction of Click and Recommendations of Revco Ds Inc (B) Case Analysis Stores

With the increased trends towards online shopping, the online stores like Amazon, Alibaba and so on could pose a serious hazard to the market share of company. In this situation the business could consider introducing Click and Recommendations of Revco Ds Inc (B) Case Analysis stores. These stores with a low requirement of funds to settle would allow the company to reach global markets, without ending its domestic stores.

Pros:

• Low financial investment
• Decreasing competition risk
• Access to the world markets
• Enlarging consumer base
• Easy to manage
• Big Revenues
• Low Operating Costs
• Easy brand-new market entryway

Cons:

• Hazard to the marketplace position
• Elimination of brand Originality
• Elimination of the excellent store experience.
• Risk of decrease in elite sales.

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

Another choice that the company might consider, is to expand towards the global markets without closing its domestic stores that adds to the huge part of incomes of the business. The benefits and drawbacks related to Alternative 3 are given listed below;

Pros:

• Minimizing competitors danger
• Access to the world markets
• Enlarging customer base
• Big Earnings
• Expedition of brand-new global markets.
• Increase in revenue from global markets.
• Earnings diversification.
• Step towards being a strong worldwide brand.

Cons:

• Extension of issues associated with variety.
• Differences in cultures might led to a failure of the brand especially in Asian nations.
• Low revenues at preliminary levels.
• Boost in marketing expenditures to gain market share.



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