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

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

On the basis of above internal and external analysis of the company along with the evaluation of different alternatives, the business is advised to consider alternative 3. As alternative 3 would allow the company to broaden in worldwide markets without any reduction in its regional earnings and any wear and tear of its market position. The business could pursue alternative 1 which would enable the business to focus on prospective worldwide markets rather than the local markets but as the company is highly dependent on the regional markets with 90% of its shops in the United States, there fore pursuing option 1 would result in the considerable decrease in business's income.

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

The business has a long term market position in United States which can not be produced quickly in the new markets. The alternative would assist the company to expand in international markets along with the removal of concerns raised in its local markets related to its variety.

Pros:

• Expedition of new global markets.
• Boost in revenue from international markets.
• Elimination of concerns associated with diversity.
• Revenue diversification.
• Step towards being a strong global brand name.

Cons:

• Loss of comprehensive earnings from the local markets.
• Boost in competitors.
• Distinctions in cultures could resulted in a failure of the brand name specifically in Asian countries.
• Low profits at initial levels.
• Boost in marketing expenditures to get market share.

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

With the increased patterns towards online shopping, the online shops like Amazon, Alibaba etc. could position a severe hazard to the market share of business. In this circumstance the company could think about presenting Click and Recommendations of Takeover! 1997 (A): Target Company Case Analysis stores. These stores with a low requirement of funds to settle would allow the company to reach international markets, without ending its domestic stores.

Pros:

• Low investment
• Reducing competition hazard
• Access to the world markets
• Expanding customer base
• Easy to handle
• Big Incomes
• Low Operating Costs
• Easy brand-new market entryway

Cons:

• Hazard to the marketplace position
• Removal of brand name Individuality
• Removal of the terrific shop experience.
• Risk of decline in elite sales.

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

Another alternative that the company might consider, is to broaden towards the international markets without closing its domestic shops that contributes to the huge part of revenues of the business. The advantages and disadvantages related to Alternative 3 are offered below;

Pros:

• Lowering competitors threat
• Access to the world markets
• Increasing the size of consumer base
• Large Earnings
• Exploration of brand-new worldwide markets.
• Increase in income from international markets.
• Revenue diversity.
• Action towards being a strong worldwide brand name.

Cons:

• Extension of problems associated with diversity.
• Differences in cultures could caused a failure of the brand name particularly in Asian nations.
• Low incomes at initial levels.
• Increase in marketing expenditures to acquire market share.



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