Recommendations of Takeover! 1997 (A) Target Company Case Help

Home >> Darden Business School >> Takeover! 1997 (A) Target Company >> Recommendations

Recommendations of Takeover! 1997 (A) Target Company Case Study Analysis

On the basis of above internal and external analysis of the business in addition to the assessment of numerous options, the company is recommended to consider alternative 3. As alternative 3 would allow the business to expand in worldwide markets with no reduction in its local earnings and any wear and tear of its market position. By considering Alternative 3, the business could keep its store experience and brand uniqueness. Nevertheless, it could also consider alternative 2 that might allow the business to access the marketplaces with no potential investment. Although, the company could pursue alternative 1 which would enable the company to focus on prospective international markets instead of the local 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 lead to the substantial decrease in business's earnings. For that reason, the business is suggested to think about alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of Takeover! 1997 (A) Target Company Case Help Stores

Expansion towards international markets through opening new shops in other Europe and Asian countries with closing domestic stores is although an excellent option for increasing the international existence of the business. The closing of domestic shops could extremely affect the revenues of the firm as above 90% of its stores are situated domestically and closing those shops would eventually minimize the incomes of the company. Additionally, the business has a long term market position in United States which can not be created soon in the new markets. The option would assist the business to broaden in worldwide markets together with the removal of concerns raised in its local markets associated with its diversity. The benefits and drawbacks for Option 1 are noted below;

Pros:

• Expedition of brand-new international markets.
• Increase in income from global markets.
• Elimination of problems connected to diversity.
• Profits diversification.
• Step towards being a strong global brand name.

Cons:

• Loss of extensive incomes from the regional markets.
• Boost in competition.
• Distinctions in cultures could resulted in a failure of the brand specifically in Asian countries.
• Low profits at preliminary levels.
• Boost in marketing expenditures to acquire market share.

Alternative-2: Introduction of Click and Recommendations of Takeover! 1997 (A) Target Company Case Analysis Stores

With the increased trends towards online shopping, the online shops like Amazon, Alibaba and so on could posture a severe risk to the market share of company. In this scenario the company could think about presenting Click and Recommendations of Takeover! 1997 (A) Target Company Case Help stores. These shops with a low requirement of funds to settle would make it possible for the business to reach international markets, without ending its domestic stores.

Pros:

• Low financial investment
• Reducing competitors risk
• Access to the world markets
• Increasing the size of customer base
• Easy to manage
• Big Incomes
• Low Operating Costs
• Easy new market entrance

Cons:

• Danger to the market position
• Removal of brand name Individuality
• Elimination of the terrific shop experience.
• Danger of decrease in elite sales.

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

Another choice that the company could think about, is to broaden towards the international markets without closing its domestic shops that adds to the huge part of earnings of the company. The pros and cons related to Alternative 3 are provided listed below;

Pros:

• Minimizing competition hazard
• Access to the world markets
• Expanding consumer base
• Large Revenues
• Expedition of brand-new worldwide markets.
• Boost in revenue from global markets.
• Profits diversification.
• Action towards being a strong global brand name.

Cons:

• Extension of issues related to variety.
• Differences in cultures could resulted in a failure of the brand especially in Asian nations.
• Low revenues at preliminary levels.
• Increase in marketing expenses 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.