Recommendations of Structuring Repsols Acquisition Of Ypf Sa (A) And (B) Case Help

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Recommendations of Structuring Repsols Acquisition Of Ypf Sa (A) And (B) Case Study Help

On the basis of above internal and external analysis of the company in addition to the evaluation of various alternatives, the business is suggested to consider alternative 3. As alternative 3 would allow the business to expand in international markets without any reduction in its local earnings and any degeneration of its market position. By thinking about Alternative 3, the business might maintain its store experience and brand name uniqueness. It could also consider alternative 2 that might enable the business to access the markets without any prospective investment. The business might pursue alternative 1 which would make it possible for the business to focus on possible global markets rather than the regional markets however as the business is highly dependent on the local markets with 90% of its shops in the US, there fore pursuing option 1 would result in the substantial decline in company's earnings. For that reason, the business is recommended to consider alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of Structuring Repsols Acquisition Of Ypf Sa (A) And (B) Case Solution Stores

Growth towards worldwide markets through opening new stores in other Europe and Asian nations with closing domestic shops is although a great option for increasing the worldwide existence of the business. The closing of domestic stores could highly affect the profits of the company as above 90% of its shops are situated domestically and closing those stores would ultimately minimize the incomes of the company. The business has a long term market position in US which can not be created soon in the new markets. The option would help the company to broaden in international markets in addition to the elimination of problems raised in its regional markets connected to its diversity. The benefits and drawbacks for Alternative 1 are noted below;

Pros:

• Expedition of new international markets.
• Increase in profits from global markets.
• Elimination of problems related to variety.
• Revenue diversity.
• Step towards being a strong worldwide brand.

Cons:

• Loss of extensive revenues from the local markets.
• Increase in competition.
• Differences in cultures might caused a failure of the brand especially in Asian nations.
• Low revenues at preliminary levels.
• Boost in marketing expenditures to gain market share.

Alternative-2: Introduction of Click and Recommendations of Structuring Repsols Acquisition Of Ypf Sa (A) And (B) Case Analysis Stores

Alternative 2 includes the intro of online market places through creating an appropriate business's site. With the increased patterns towards online shopping, the online stores like Amazon, Alibaba etc. might position a serious hazard to the marketplace share of company. Moreover, the competitors are moving towards click and Recommendations of Structuring Repsols Acquisition Of Ypf Sa (A) And (B) Case Solution shops with Gap presenting Piperline. This shift towards online markets might minimize the revenues for business. In this circumstance the business could consider introducing Click and Recommendations of Structuring Repsols Acquisition Of Ypf Sa (A) And (B) Case Analysis shops. These stores with a low requirement of funds to settle would enable the company to reach global markets, without ending its domestic stores. The advantages and disadvantages of alternative 2 are given as follows;

Pros:

• Low financial investment
• Minimizing competitors danger
• Access to the world markets
• Expanding customer base
• Easy to handle
• Big Earnings
• Low Operating Costs
• Easy new market entrance

Cons:

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

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

Another alternative that the business could consider, is to broaden towards the international markets without closing its domestic stores that adds to the major part of incomes of the business. The benefits and drawbacks related to Alternative 3 are provided below;

Pros:

• Reducing competitors danger
• Access to the world markets
• Enlarging consumer base
• Large Incomes
• Exploration of brand-new international markets.
• Boost in earnings from worldwide markets.
• Income diversity.
• Step towards being a strong worldwide brand.

Cons:

• Continuation of problems related to diversity.
• Differences in cultures could caused a failure of the brand particularly in Asian countries.
• Low earnings at preliminary levels.
• Increase in marketing expenditures to get market share.



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