Recommendations of Takeover! 1997 (D) The White Knight United Brands Corporation Case Help

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Recommendations of Takeover! 1997 (D) The White Knight United Brands Corporation Case Study Analysis

On the basis of above internal and external analysis of the business along with the assessment of numerous options, the company is recommended to consider alternative 3. As alternative 3 would permit the business to broaden in global markets without any reduction in its local incomes and any degeneration of its market position. The business might pursue alternative 1 which would allow the business to focus on prospective worldwide markets rather than 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 alternative 1 would result in the considerable decrease in business's income.

Aletrnative-1: Expanding International Brick and Recommendations of Takeover! 1997 (D) The White Knight United Brands Corporation Case Help Stores

Expansion towards global markets through opening new stores in other Europe and Asian countries with closing domestic shops is although an excellent choice for increasing the international presence of the company. The closing of domestic shops might highly affect the earnings of the company as above 90% of its stores are situated locally and closing those shops would eventually reduce the revenues of the firm. Moreover, the company has a long term market position in United States which can not be produced soon in the brand-new markets. The option would help the company to broaden in international markets in addition to the removal of problems raised in its local markets associated with its variety. The pros and Cons for Option 1 are noted below;

Pros:

• Expedition of new global markets.
• Increase in earnings from international markets.
• Elimination of problems related to diversity.
• Profits diversification.
• Step towards being a strong global brand.

Cons:

• Loss of extensive earnings from the local markets.
• Increase in competition.
• Differences in cultures could led to a failure of the brand specifically in Asian nations.
• Low revenues at initial levels.
• Boost in marketing expenditures to acquire market share.

Alternative-2: Introduction of Click and Recommendations of Takeover! 1997 (D) The White Knight United Brands Corporation Case Help Stores

Alternative 2 includes the introduction of online market locations through producing a proper business's site. With the increased patterns towards online shopping, the online stores like Amazon, Alibaba etc. could position a serious hazard to the marketplace share of company. The competitors are moving towards click and Recommendations of Takeover! 1997 (D) The White Knight United Brands Corporation Case Solution shops with Space introducing Piperline. This shift towards online markets could decrease the revenues for company. In this scenario the business might consider introducing Click and Recommendations of Takeover! 1997 (D) The White Knight United Brands Corporation Case Help shops. These shops with a low requirement of funds to settle would make it possible for the company to reach worldwide markets, without ending its domestic shops. The benefits and drawbacks of alternative 2 are provided as follows;

Pros:

• Low financial investment
• Reducing competition risk
• Access to the world markets
• Enlarging consumer base
• Easy to manage
• Big Profits
• Low Operating Costs
• Easy brand-new market entrance

Cons:

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

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

Another option that the company might think about, is to expand towards the global markets without closing its domestic shops that contributes to the major part of revenues of the business. The pros and cons associated with Alternative 3 are provided below;

Pros:

• Reducing competition threat
• Access to the world markets
• Expanding consumer base
• Big Profits
• Exploration of new global markets.
• Boost in revenue from international markets.
• Revenue diversification.
• Action towards being a strong international brand.

Cons:

• Continuation of issues associated with diversity.
• Differences in cultures could resulted in a failure of the brand especially in Asian nations.
• Low profits at initial levels.
• Boost in marketing expenditures to get market share.



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