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

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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 company along with the assessment of different options, the company is advised to think about alternative 3. As alternative 3 would enable the business to broaden in worldwide markets with no reduction in its regional revenues and any wear and tear of its market position. By thinking about Alternative 3, the business could maintain its shop experience and brand name uniqueness. It might also consider alternative 2 that might allow the business to access the markets without any possible investment. The company could pursue alternative 1 which would allow the business to focus on possible 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 US, there fore pursuing option 1 would result in the considerable decline in company's income. Therefore, the company is recommended to think about alternative 3.

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

The business has a long term market position in US which can not be created soon in the brand-new markets. The option would assist the business to broaden in global markets along with the removal of concerns raised in its local markets related to its diversity.

Pros:

• Exploration of brand-new international markets.
• Boost in earnings from international markets.
• Elimination of issues connected to diversity.
• Revenue diversity.
• Action towards being a strong international brand.

Cons:

• Loss of extensive revenues from the local markets.
• Boost in competitors.
• Distinctions in cultures could resulted in a failure of the brand name specifically in Asian countries.
• 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 Analysis Stores

With the increased patterns towards online shopping, the online shops like Amazon, Alibaba and so on could posture a severe threat to the market share of company. In this situation the company might consider presenting Click and Recommendations of Takeover! 1997 (D) The White Knight: United Brands Corporation Case Help shops. These stores with a low requirement of funds to settle would allow the business to reach worldwide markets, without ending its domestic stores.

Pros:

• Low financial investment
• Lowering competition risk
• Access to the world markets
• Increasing the size of customer base
• Easy to manage
• Big Incomes
• Low Operating Expense
• Easy brand-new market entrance

Cons:

• Hazard to the market position
• Removal of brand Individuality
• Elimination of the great shop experience.
• Risk of decrease in elite sales.

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

Another choice that the company could think about, is to broaden towards the worldwide markets without closing its domestic shops that adds to the huge part of profits of the company. The pros and cons connected to Alternative 3 are provided listed below;

Pros:

• Lowering competition danger
• Access to the world markets
• Increasing the size of consumer base
• Big Revenues
• Exploration of new global markets.
• Increase in income from international markets.
• Income diversity.
• Step towards being a strong global brand.

Cons:

• Extension of issues connected to diversity.
• Distinctions in cultures might led to a failure of the brand name particularly in Asian countries.
• Low profits at initial levels.
• Boost in marketing expenses to get market share.



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