Recommendations of The Merger Of Hewlett-Packard And Compaq (A) Strategy And Valuation Case Help

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Recommendations of The Merger Of Hewlett-Packard And Compaq (A) Strategy And Valuation Case Study Solution

On the basis of above internal and external analysis of the company in addition to the examination of different alternatives, the business is advised to think about alternative 3. As alternative 3 would enable the business to broaden in global markets with no decrease in its regional earnings and any wear and tear of its market position. By thinking about Alternative 3, the business might keep its store experience and brand individuality. However, it might also think about alternative 2 that could allow the company to access the markets with no possible financial investment. Although, the business could pursue alternative 1 which would allow the business to concentrate on prospective international markets instead of the local markets however as the company is highly based on the local markets with 90% of its shops in the US, there fore pursuing alternative 1 would result in the substantial decline in company's earnings. For that reason, the company is suggested to think about alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of The Merger Of Hewlett-Packard And Compaq (A) Strategy And Valuation Case Analysis Stores

The company has a long term market position in US which can not be created soon in the new markets. The option would assist the business to expand in worldwide markets along with the removal of concerns raised in its regional markets related to its variety.

Pros:

• Exploration of new global markets.
• Boost in income from worldwide markets.
• Elimination of issues associated with variety.
• Earnings diversification.
• Action towards being a strong international brand name.

Cons:

• Loss of extensive profits from the local markets.
• Boost in competition.
• Distinctions in cultures could resulted in a failure of the brand name specifically in Asian nations.
• Low earnings at preliminary levels.
• Increase in marketing expenses to get market share.

Alternative-2: Introduction of Click and Recommendations of The Merger Of Hewlett-Packard And Compaq (A) Strategy And Valuation Case Help Stores

Alternative 2 includes the introduction of online market locations through producing an appropriate business's website. With the increased trends towards online shopping, the online shops like Amazon, Alibaba and so on might position a severe risk to the market share of company. Moreover, the competitors are moving towards click and Recommendations of The Merger Of Hewlett-Packard And Compaq (A) Strategy And Valuation Case Analysis stores with Gap introducing Piperline. This shift towards online markets might reduce the earnings for company. In this situation the business might consider presenting Click and Recommendations of The Merger Of Hewlett-Packard And Compaq (A) Strategy And Valuation Case Solution shops. These shops with a low requirement of funds to settle would make it possible for the company to reach international markets, without ending its domestic stores. The advantages and disadvantages of alternative 2 are offered as follows;

Pros:

• Low investment
• Reducing competitors danger
• Access to the world markets
• Expanding consumer base
• Easy to handle
• Big Revenues
• Low Operating Costs
• Easy brand-new market entryway

Cons:

• Hazard to the market position
• Removal of brand Individuality
• Removal of the great shop experience.
• Risk of decrease in elite sales.

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

Another alternative that the company might consider, is to expand towards the worldwide markets without closing its domestic shops that contributes to the huge part of earnings of the company. The pros and cons connected to Alternative 3 are offered below;

Pros:

• Lowering competitors threat
• Access to the world markets
• Expanding consumer base
• Large Revenues
• Exploration of brand-new global markets.
• Boost in income from worldwide markets.
• Earnings diversity.
• Action towards being a strong global brand.

Cons:

• Extension of issues associated with diversity.
• Differences 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 get market share.



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