Recommendations of Takeover! 1997 (C): Lbo Firm Case Solution

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Recommendations of Takeover! 1997 (C): Lbo Firm Case Study Solution

On the basis of above internal and external analysis of the company along with the examination of various options, the company is advised to consider alternative 3. As alternative 3 would enable the company to expand in global markets without any decrease in its regional profits and any wear and tear of its market position. The business could pursue alternative 1 which would allow the business to focus on potential worldwide markets rather than the regional markets but as the company is extremely reliant on the regional markets with 90% of its shops in the United States, there fore pursuing option 1 would result in the considerable decline in business's income.

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

Expansion towards international markets through opening new stores in other Europe and Asian nations with closing domestic stores is although a great choice for increasing the international existence of the company. However, the closing of domestic stores might highly affect the incomes of the firm as above 90% of its shops are located locally and closing those stores would eventually minimize the earnings of the company. Moreover, the company has a long term market position in US which can not be produced soon in the new markets. The option would assist the company to broaden in worldwide markets in addition to the elimination of issues raised in its regional markets connected to its diversity. The benefits and drawbacks for Alternative 1 are listed below;

Pros:

• Exploration of new worldwide markets.
• Increase in earnings from international markets.
• Removal of issues related to diversity.
• Earnings diversity.
• Step towards being a strong international brand name.

Cons:

• Loss of extensive profits from the local markets.
• Boost in competitors.
• Distinctions in cultures might resulted in a failure of the brand name particularly in Asian nations.
• Low earnings at preliminary levels.
• Boost in marketing expenditures to gain market share.

Alternative-2: Introduction of Click and Recommendations of Takeover! 1997 (C): Lbo Firm Case Analysis Stores

With the increased trends towards online shopping, the online stores like Amazon, Alibaba etc. might posture an extreme danger to the market share of company. In this circumstance the company could consider introducing Click and Recommendations of Takeover! 1997 (C): Lbo Firm Case Solution stores. These shops with a low requirement of funds to settle would enable the business to reach international markets, without ending its domestic stores.

Pros:

• Low investment
• Lowering competition threat
• Access to the world markets
• Expanding consumer base
• Easy to handle
• Large Revenues
• Low Operating Costs
• Easy new market entrance

Cons:

• Danger to the marketplace position
• Elimination of brand name Uniqueness
• Elimination of the fantastic store experience.
• Threat of decrease in elite sales.

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

Another option that the business might think about, is to expand towards the international markets without closing its domestic shops that contributes to the huge part of incomes of the business. The benefits and drawbacks associated with Alternative 3 are provided listed below;

Pros:

• Decreasing competitors danger
• Access to the world markets
• Increasing the size of consumer base
• Big Earnings
• Exploration of brand-new worldwide markets.
• Increase in profits from worldwide markets.
• Profits diversification.
• Action towards being a strong worldwide brand name.

Cons:

• Continuation of issues connected to diversity.
• Differences in cultures could led to a failure of the brand name particularly in Asian countries.
• Low incomes at initial levels.
• Increase in marketing expenses to get market share.



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