Recommendations of The L S Starrett Company Case Solution

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Recommendations of The L S Starrett Company Case Study Help

On the basis of above internal and external analysis of the business along with the examination of various alternatives, the business is advised to consider alternative 3. As alternative 3 would enable the company to expand in global markets without any reduction in its regional incomes and any wear and tear of its market position. By thinking about Alternative 3, the company might preserve its store experience and brand name originality. It might also consider alternative 2 that could enable the business to access the markets without any possible financial investment. The business could pursue alternative 1 which would enable the company to focus on prospective international markets rather than the regional markets however as the business is highly reliant on the regional markets with 90% of its shops in the US, there fore pursuing option 1 would result in the considerable decrease in business's revenue. The business is recommended to think about alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of The L S Starrett Company Case Analysis Stores

Expansion towards global markets through opening new stores in other Europe and Asian nations with closing domestic shops is although an excellent alternative for increasing the international existence of the company. The closing of domestic stores could extremely impact the revenues of the company as above 90% of its shops are situated locally and closing those stores would ultimately minimize the profits of the company. Additionally, the company has a long term market position in United States which can not be produced soon in the new markets. The alternative would help the business to expand in international markets together with the removal of concerns raised in its regional markets associated with its diversity. The pros and Cons for Alternative 1 are noted below;

Pros:

• Exploration of new international markets.
• Boost in earnings from worldwide markets.
• Elimination of concerns related to variety.
• Earnings diversification.
• Step towards being a strong global brand name.

Cons:

• Loss of extensive incomes from the regional markets.
• Increase in competitors.
• Distinctions in cultures could led to a failure of the brand name especially in Asian countries.
• Low incomes at initial levels.
• Increase in marketing expenditures to acquire market share.

Alternative-2: Introduction of Click and Recommendations of The L S Starrett Company Case Help Stores

With the increased trends towards online shopping, the online shops like Amazon, Alibaba and so on might present a serious threat to the market share of company. In this scenario the business could think about presenting Click and Recommendations of The L S Starrett Company Case Analysis shops. These stores with a low requirement of funds to settle would allow the business to reach worldwide markets, without ending its domestic shops.

Pros:

• Low investment
• Minimizing competitors threat
• Access to the world markets
• Expanding customer base
• Easy to handle
• Large Incomes
• Low Operating Expense
• Easy brand-new market entryway

Cons:

• Threat to the marketplace position
• Removal of brand Uniqueness
• Elimination of the excellent store experience.
• Threat of decline in elite sales.

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

Another option that the business could think about, is to broaden towards the international markets without closing its domestic stores that adds to the huge part of revenues of the company. The advantages and disadvantages connected to Alternative 3 are provided below;

Pros:

• Decreasing competition hazard
• Access to the world markets
• Increasing the size of consumer base
• Large Profits
• Exploration of new worldwide markets.
• Increase in income from global markets.
• Revenue diversity.
• Action towards being a strong international brand name.

Cons:

• Extension of problems connected to variety.
• Differences in cultures might caused a failure of the brand especially in Asian countries.
• Low profits at preliminary levels.
• Boost in marketing expenditures to acquire market share.



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