Recommendations of The Body Shop International Plc 2001 An Introduction To Financial Modeling Case Help

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Recommendations of The Body Shop International Plc 2001 An Introduction To Financial Modeling Case Study Solution

On the basis of above internal and external analysis of the business along with the assessment of numerous alternatives, the business is recommended to think about alternative 3. As alternative 3 would allow the company to expand in worldwide markets without any decrease in its regional earnings and any degeneration of its market position. The business could pursue alternative 1 which would make it possible for the company to focus on possible international markets rather than the regional markets however as the company is extremely reliant on the regional markets with 90% of its shops in the United States, there fore pursuing alternative 1 would result in the considerable decrease in company's revenue.

Aletrnative-1: Expanding International Brick and Recommendations of The Body Shop International Plc 2001 An Introduction To Financial Modeling Case Help Stores

The business has a long term market position in United States which can not be generated soon in the new markets. The choice would assist the business to broaden in international markets along with the removal of issues raised in its local markets related to its variety.

Pros:

• Exploration of new global markets.
• Increase in profits from worldwide markets.
• Elimination of issues connected to variety.
• Profits diversification.
• Action towards being a strong international brand.

Cons:

• Loss of substantial profits from the regional markets.
• Boost in competitors.
• Distinctions in cultures might led to a failure of the brand name specifically in Asian countries.
• Low revenues at preliminary levels.
• Increase in marketing expenditures to gain market share.

Alternative-2: Introduction of Click and Recommendations of The Body Shop International Plc 2001 An Introduction To Financial Modeling Case Solution Stores

Alternative 2 includes the intro of online market locations through generating a proper company's site. With the increased trends towards online shopping, the online shops like Amazon, Alibaba and so on could pose a severe risk to the market share of company. The competitors are moving towards click and Recommendations of The Body Shop International Plc 2001 An Introduction To Financial Modeling Case Analysis stores with Gap introducing Piperline. This shift towards online markets might minimize the revenues for company. In this situation the company might think about presenting Click and Recommendations of The Body Shop International Plc 2001 An Introduction To Financial Modeling Case Help shops. These shops with a low requirement of funds to settle would allow the business to reach international markets, without ending its domestic stores. The benefits and drawbacks of option 2 are given as follows;

Pros:

• Low investment
• Minimizing competition danger
• Access to the world markets
• Enlarging customer base
• Easy to handle
• Big Profits
• Low Operating Expense
• Easy new market entryway

Cons:

• Risk to the market position
• Removal 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 choice that the business might think about, is to expand towards the worldwide markets without closing its domestic shops that adds to the major part of earnings of the company. The advantages and disadvantages associated with Alternative 3 are provided listed below;

Pros:

• Reducing competitors danger
• Access to the world markets
• Expanding consumer base
• Big Revenues
• Expedition of brand-new international markets.
• Increase in profits from worldwide markets.
• Income diversification.
• Step towards being a strong international brand name.

Cons:

• Extension of issues connected to diversity.
• Distinctions in cultures might resulted in a failure of the brand name particularly in Asian nations.
• Low revenues at initial levels.
• Boost in marketing expenditures to gain market share.



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