Recommendations of Takeover! 1997 (D) White Knight Case Help

Home >> Darden Business School >> Takeover! 1997 (D) White Knight >> Recommendations

Recommendations of Takeover! 1997 (D) White Knight Case Study Analysis

On the basis of above internal and external analysis of the business along with the evaluation of different options, the company is suggested to consider alternative 3. As alternative 3 would allow the business to broaden in international markets without any reduction in its local incomes and any degeneration of its market position. The business could pursue alternative 1 which would enable the company to focus on potential global markets rather than the regional markets however as the company is highly dependent on the local markets with 90% of its stores in the US, there fore pursuing option 1 would result in the substantial decrease in company's earnings.

Aletrnative-1: Expanding International Brick and Recommendations of Takeover! 1997 (D) White Knight Case Solution Stores

Expansion towards global markets through opening new stores in other Europe and Asian countries with closing domestic stores is although a great option for increasing the international presence of the business. Nevertheless, the closing of domestic shops might highly affect the incomes of the firm as above 90% of its shops are located domestically and closing those stores would ultimately reduce the profits of the company. The business has a long term market position in United States which can not be created soon in the brand-new markets. The option would help the business to expand in global markets along with the elimination of problems raised in its regional markets associated with its diversity. The pros and Cons for Alternative 1 are noted below;

Pros:

• Expedition of new global markets.
• Boost in profits from international markets.
• Elimination of issues associated with variety.
• Earnings diversity.
• Step towards being a strong global brand.

Cons:

• Loss of extensive earnings from the regional markets.
• Increase in competitors.
• Differences in cultures might caused a failure of the brand name particularly in Asian countries.
• Low profits at preliminary levels.
• Boost in marketing expenses to gain market share.

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

With the increased patterns towards online shopping, the online shops like Amazon, Alibaba etc. might posture a serious danger to the market share of business. In this situation the company might consider presenting Click and Recommendations of Takeover! 1997 (D) White Knight Case Analysis shops. These shops with a low requirement of funds to settle would allow the business to reach worldwide markets, without ending its domestic shops.

Pros:

• Low investment
• Decreasing competitors hazard
• Access to the world markets
• Enlarging consumer base
• Easy to handle
• Big Revenues
• Low Operating Costs
• Easy brand-new market entryway

Cons:

• Hazard to the market position
• Elimination of brand name Individuality
• Elimination of the excellent shop experience.
• Risk of decline in elite sales.

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

Another choice that the company could think about, is to expand towards the global markets without closing its domestic stores that contributes to the huge part of revenues of the company. The advantages and disadvantages connected to Alternative 3 are given listed below;

Pros:

• Reducing competitors threat
• Access to the world markets
• Enlarging customer base
• Large Incomes
• Exploration of new international markets.
• Boost in income from global markets.
• Income diversification.
• Step towards being a strong international brand.

Cons:

• Extension of issues associated with diversity.
• Differences in cultures might caused a failure of the brand name especially in Asian countries.
• Low revenues at preliminary levels.
• Boost in marketing expenditures to gain 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.