Recommendations of The Financial Detective 2005 Case Analysis

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Recommendations of The Financial Detective 2005 Case Study Analysis

On the basis of above internal and external analysis of the business together with the evaluation of various alternatives, the company is recommended to think about alternative 3. As alternative 3 would enable the company to broaden in global markets with no reduction in its local earnings and any deterioration of its market position. By thinking about Alternative 3, the business might maintain its shop experience and brand name uniqueness. However, it could likewise consider alternative 2 that might allow the company to access the marketplaces with no possible financial investment. The business could pursue alternative 1 which would allow the business to focus on potential global markets rather than the regional markets but as the company is highly reliant on the local markets with 90% of its stores in the US, there fore pursuing alternative 1 would result in the significant decrease in company's earnings. The company is recommended to think about alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of The Financial Detective 2005 Case Solution Stores

Expansion towards international markets through opening brand-new shops in other Europe and Asian countries with closing domestic stores is although a great alternative for increasing the international presence of the business. Nevertheless, the closing of domestic stores could highly impact the revenues of the company as above 90% of its stores are located locally and closing those shops would eventually decrease the profits of the company. Additionally, the company has a long term market position in US which can not be generated quickly in the new markets. The alternative would help the company to broaden in worldwide markets along with the elimination of concerns raised in its regional markets connected to its variety. The advantages and disadvantages for Alternative 1 are noted below;

Pros:

• Exploration of new worldwide markets.
• Increase in profits from global markets.
• Elimination of concerns connected to diversity.
• Income diversity.
• Action towards being a strong worldwide brand name.

Cons:

• Loss of substantial revenues from the regional markets.
• Increase in competitors.
• Differences in cultures could led to a failure of the brand specifically in Asian countries.
• Low revenues at preliminary levels.
• Increase in marketing expenses to gain market share.

Alternative-2: Introduction of Click and Recommendations of The Financial Detective 2005 Case Solution Stores

With the increased trends towards online shopping, the online stores like Amazon, Alibaba etc. might pose a serious danger to the market share of business. In this scenario the business could consider introducing Click and Recommendations of The Financial Detective 2005 Case Solution shops. These stores with a low requirement of funds to settle would enable the business to reach worldwide markets, without ending its domestic stores.

Pros:

• Low financial investment
• Minimizing competition threat
• Access to the world markets
• Enlarging consumer base
• Easy to handle
• Big Revenues
• Low Operating Expense
• Easy new market entryway

Cons:

• Threat to the marketplace position
• Removal of brand Individuality
• Elimination of the excellent store experience.
• Danger 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 broaden towards the global markets without closing its domestic stores that contributes to the major part of revenues of the company. The pros and cons associated with Alternative 3 are provided below;

Pros:

• Lowering competitors risk
• Access to the world markets
• Expanding consumer base
• Large Revenues
• Expedition of brand-new worldwide markets.
• Increase in profits from international markets.
• Income diversification.
• Action towards being a strong global brand name.

Cons:

• Extension of issues associated with variety.
• Distinctions in cultures might resulted in a failure of the brand particularly in Asian countries.
• Low incomes at initial levels.
• Boost in marketing expenses to gain market share.



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