Recommendations of Takeover! 1997 (C) The Lbo Firm Lanza And Company Case Analysis

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Recommendations of Takeover! 1997 (C) The Lbo Firm Lanza And Company Case Study Solution

Recommendations On the basis of above internal and external analysis of the business in addition to the examination of different alternatives, the company is recommended to think about alternative 3. As alternative 3 would permit the business to broaden in international markets with no decrease in its regional incomes and any degeneration of its market position. By considering Alternative 3, the business might keep its shop experience and brand originality. Nevertheless, it could also think about alternative 2 that might permit the business to access the markets without any prospective financial investment. Although, the business might pursue alternative 1 which would allow the business to focus on possible worldwide markets instead of the regional markets but as the company is extremely dependent on the regional markets with 90% of its stores in the US, there fore pursuing option 1 would result in the significant decrease in business's earnings. For that reason, the business is recommended to think about alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of Takeover! 1997 (C) The Lbo Firm Lanza And Company Case Solution Stores

International Segments Expansion towards worldwide markets through opening new shops in other Europe and Asian nations with closing domestic stores is although a good option for increasing the worldwide existence of the company. The closing of domestic stores could extremely affect the revenues of the firm as above 90% of its stores are situated domestically and closing those shops would eventually decrease the revenues of the company. Additionally, the business has a long term market position in United States which can not be produced quickly in the brand-new markets. The alternative would assist the company to expand in international markets together with the removal of problems raised in its regional markets associated with its variety. The benefits and drawbacks for Option 1 are noted below;

Pros:

• Expedition of new global markets.
• Boost in income from global markets.
• Elimination of problems related to diversity.
• Income diversification.
• Action towards being a strong global brand.

Cons:

• Loss of comprehensive earnings from the local markets.
• Boost in competition.
• Differences in cultures might led to a failure of the brand specifically in Asian countries.
• Low revenues at preliminary levels.
• Increase in marketing expenditures to gain market share.

Alternative-2: Introduction of Click and Recommendations of Takeover! 1997 (C) The Lbo Firm Lanza And Company Case Solution Stores

Alternative 2 includes the intro of online market locations through generating a correct company's site. With the increased trends towards online shopping, the online shops like Amazon, Alibaba etc. could present a serious risk to the marketplace share of company. The competitors are moving towards click and Recommendations of Takeover! 1997 (C) The Lbo Firm Lanza And Company Case Help shops with Gap presenting Piperline. This shift towards online markets might lower the revenues for business. In this circumstance the company could consider introducing Click and Recommendations of Takeover! 1997 (C) The Lbo Firm Lanza And Company Case Solution shops. These shops with a low requirement of funds to settle would allow the company to reach international markets, without ending its domestic shops. The benefits and drawbacks of alternative 2 are provided as follows;

Pros:

• Low financial investment
• Minimizing competition danger
• Access to the world markets
• Increasing the size of customer base
• Easy to handle
• Large Profits
• Low Operating Costs
• Easy new market entryway

Cons:

• Danger to the market position
• Removal of brand name Originality
• Elimination of the fantastic shop experience.
• Risk of decrease in elite sales.

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

Another alternative that the business might think about, is to expand towards the global markets without closing its domestic stores that adds to the huge part of earnings of the business. The benefits and drawbacks associated with Alternative 3 are provided below;

Pros:

• Minimizing competitors risk
• Access to the world markets
• Enlarging consumer base
• Big Incomes
• Expedition of new international markets.
• Boost in revenue from worldwide markets.
• Revenue diversity.
• Step towards being a strong international brand name.

Cons:

• Continuation of issues connected to variety.
• Differences in cultures could led to a failure of the brand name especially in Asian nations.
• Low earnings at preliminary levels.
• Increase in marketing expenditures to acquire market share.

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