Recommendations of Structuring Repsols Acquisition Of Ypf Sa (A) Case Analysis

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Recommendations of Structuring Repsols Acquisition Of Ypf Sa (A) Case Study Analysis

On the basis of above internal and external analysis of the company along with the examination of numerous alternatives, the company is advised to consider alternative 3. As alternative 3 would enable the business to expand in international 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 business to focus on possible international markets rather than the local markets however as the company is highly reliant on the local markets with 90% of its shops in the United States, there fore pursuing option 1 would result in the significant decline in business's income.

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

Growth towards international markets through opening brand-new stores in other Europe and Asian nations with closing domestic shops is although an excellent alternative for increasing the worldwide presence of the company. The closing of domestic stores might extremely affect the earnings of the company as above 90% of its shops are located domestically and closing those shops would ultimately reduce the incomes of the firm. Additionally, the company has a long term market position in US which can not be generated soon in the new markets. The option would assist the company to broaden in international markets together with the elimination of concerns raised in its regional markets connected to its variety. The pros and Cons for Option 1 are noted below;

Pros:

• Expedition of new worldwide markets.
• Boost in income from worldwide markets.
• Elimination of issues connected to diversity.
• Profits diversification.
• Step towards being a strong worldwide brand name.

Cons:

• Loss of extensive incomes from the regional markets.
• Increase in competition.
• Differences in cultures could caused a failure of the brand name specifically in Asian countries.
• Low earnings at preliminary levels.
• Increase in marketing expenditures to get market share.

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

Alternative 2 consists of the intro of online market locations through creating a proper business's site. With the increased trends towards online shopping, the online shops like Amazon, Alibaba etc. might position a serious danger to the marketplace share of business. Moreover, the rivals are moving towards click and Recommendations of Structuring Repsols Acquisition Of Ypf Sa (A) Case Solution shops with Space introducing Piperline. This shift towards online markets could reduce the revenues for company. In this situation the business could consider presenting Click and Recommendations of Structuring Repsols Acquisition Of Ypf Sa (A) Case Solution shops. These stores with a low requirement of funds to settle would allow the business to reach international markets, without ending its domestic shops. The pros and cons of alternative 2 are offered as follows;

Pros:

• Low financial investment
• Minimizing competition hazard
• Access to the world markets
• Increasing the size of consumer base
• Easy to handle
• Large Profits
• Low Operating Costs
• Easy new market entrance

Cons:

• Danger to the marketplace position
• Removal of brand name Uniqueness
• Removal of the excellent store experience.
• Danger of decline in elite sales.

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

Another alternative that the business could think about, is to expand towards the global markets without closing its domestic shops that adds to the huge part of revenues of the company. The pros and cons associated with Alternative 3 are given listed below;

Pros:

• Minimizing competitors risk
• Access to the world markets
• Expanding consumer base
• Large Profits
• Expedition of brand-new international markets.
• Increase in revenue from worldwide markets.
• Profits diversity.
• Action towards being a strong worldwide brand.

Cons:

• Continuation of problems connected to variety.
• Distinctions in cultures might caused a failure of the brand especially in Asian nations.
• Low earnings at preliminary levels.
• Increase in marketing expenditures to acquire market share.



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