Recommendations of Takeover! 1997 Case Solution

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Recommendations of Takeover! 1997 Case Study Analysis

On the basis of above internal and external analysis of the business along with the examination of different options, the company is suggested to consider alternative 3. As alternative 3 would permit the company to expand in worldwide 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 global markets rather than the local markets however as the company is highly dependent on the regional markets with 90% of its stores in the United States, there fore pursuing option 1 would result in the substantial decrease in company's income.

Aletrnative-1: Expanding International Brick and Recommendations of Takeover! 1997 Case Analysis Stores

The company has a long term market position in United States which can not be created quickly in the brand-new markets. The choice would help the business to broaden in worldwide markets along with the removal of problems raised in its local markets related to its diversity.

Pros:

• Exploration of brand-new international markets.
• Increase in earnings from worldwide markets.
• Removal of problems related to diversity.
• Earnings diversification.
• Step towards being a strong global brand.

Cons:

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

Alternative-2: Introduction of Click and Recommendations of Takeover! 1997 Case Solution Stores

With the increased patterns towards online shopping, the online stores like Amazon, Alibaba etc. might present a severe danger to the market share of business. In this situation the business could consider presenting Click and Recommendations of Takeover! 1997 Case Solution shops. These shops with a low requirement of funds to settle would make it possible for the company to reach global markets, without ending its domestic shops.

Pros:

• Low financial investment
• Minimizing competitors risk
• Access to the world markets
• Expanding consumer base
• Easy to handle
• Large Revenues
• Low Operating Expense
• Easy brand-new market entryway

Cons:

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

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

Another choice that the business might consider, is to broaden towards the international markets without closing its domestic stores that contributes to the huge part of earnings of the company. The pros and cons connected to Alternative 3 are given listed below;

Pros:

• Decreasing competitors threat
• Access to the world markets
• Increasing the size of consumer base
• Large Earnings
• Exploration of brand-new global markets.
• Increase in profits from international markets.
• Earnings diversity.
• Action towards being a strong global brand.

Cons:

• Continuation of concerns associated with diversity.
• Differences in cultures could led to a failure of the brand name especially in Asian countries.
• Low earnings at preliminary levels.
• Boost in marketing expenses to get market share.



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