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

Home >> Darden Business School >> Takeover! 1997 (C) The Lbo Firm: Lanza And Company >> Recommendations

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

On the basis of above internal and external analysis of the company along with the evaluation of numerous options, the company is advised to think about alternative 3. As alternative 3 would allow the company to expand in worldwide markets without any reduction in its local earnings and any deterioration of its market position. The company could pursue alternative 1 which would make it possible for 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 US, there fore pursuing alternative 1 would result in the considerable decline in business's profits.

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

Expansion towards international markets through opening brand-new stores in other Europe and Asian countries with closing domestic shops is although a great choice for increasing the global existence of the company. Nevertheless, the closing of domestic stores might highly affect the revenues of the company as above 90% of its shops are located locally and closing those shops would eventually decrease the incomes of the company. Furthermore, the company has a long term market position in United States which can not be produced quickly in the brand-new markets. The choice would assist the company to expand in worldwide markets in addition to the removal of concerns raised in its regional markets connected to its variety. The pros and Cons for Option 1 are listed below;

Pros:

• Exploration of brand-new worldwide markets.
• Increase in earnings from worldwide markets.
• Elimination of issues related to diversity.
• Earnings diversification.
• Action towards being a strong global brand.

Cons:

• Loss of extensive earnings from the local markets.
• Boost in competitors.
• Distinctions in cultures might led to a failure of the brand name especially in Asian countries.
• Low profits at preliminary levels.
• Increase in marketing expenditures to acquire market share.

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

Alternative 2 includes the intro of online market places through generating a proper company's website. With the increased patterns towards online shopping, the online shops like Amazon, Alibaba etc. might present an extreme hazard to the market share of company. The rivals are shifting towards click and Recommendations of Takeover! 1997 (C) The Lbo Firm: Lanza And Company Case Solution stores with Gap presenting Piperline. This shift towards online markets might decrease the profits for business. In this circumstance the company might consider introducing Click and Recommendations of Takeover! 1997 (C) The Lbo Firm: Lanza And Company Case Help shops. These stores with a low requirement of funds to settle would make it possible for the business to reach worldwide markets, without ending its domestic stores. The pros and cons of option 2 are provided as follows;

Pros:

• Low financial investment
• Minimizing competitors risk
• Access to the world markets
• Expanding customer base
• Easy to manage
• Large Profits
• Low Operating Costs
• Easy brand-new market entrance

Cons:

• Risk to the marketplace position
• Elimination of brand Individuality
• Removal of the excellent store experience.
• Danger of decrease in elite sales.

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

Another option that the business might consider, is to expand towards the international markets without closing its domestic shops that adds to the huge part of profits of the company. The pros and cons associated with Alternative 3 are provided below;

Pros:

• Reducing competitors danger
• Access to the world markets
• Enlarging customer base
• Large Incomes
• Exploration of new global markets.
• Increase in earnings from international markets.
• Revenue diversity.
• Action towards being a strong international brand.

Cons:

• Continuation of issues associated with diversity.
• Distinctions in cultures could led to a failure of the brand name particularly in Asian countries.
• Low revenues at initial levels.
• Increase in marketing expenses to acquire 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.