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

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

On the basis of above internal and external analysis of the company along with the assessment of different options, the business is suggested to think about alternative 3. As alternative 3 would allow the company to expand in worldwide markets with no decrease in its regional earnings and any deterioration of its market position. By thinking about Alternative 3, the company could keep its shop experience and brand individuality. It could likewise consider alternative 2 that might allow the company to access the markets without any potential financial investment. The company might pursue alternative 1 which would make it possible for the business to focus on potential international markets rather than the regional markets however as the company is highly reliant on the regional markets with 90% of its shops in the United States, there fore pursuing option 1 would result in the considerable decrease in company's earnings. For that reason, the business is advised 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 Help Stores

The business has a long term market position in United States which can not be produced quickly in the new markets. The alternative would help the business to broaden in worldwide markets along with the elimination of problems raised in its local markets related to its variety.

Pros:

• Exploration of brand-new international markets.
• Boost in profits from global markets.
• Elimination of problems associated with diversity.
• Earnings diversification.
• Step towards being a strong international brand.

Cons:

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

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

With the increased patterns towards online shopping, the online shops like Amazon, Alibaba etc. might position a serious risk to the market share of company. In this circumstance the business might consider presenting Click and Recommendations of The Merger Of Hewlett-Packard And Compaq (A): Strategy And Valuation Case Help shops. These shops with a low requirement of funds to settle would enable the business to reach international markets, without ending its domestic shops.

Pros:

• Low financial investment
• Reducing competitors risk
• Access to the world markets
• Enlarging consumer base
• Easy to manage
• Large Earnings
• Low Operating Expense
• Easy new market entryway

Cons:

• Danger to the market position
• Removal of brand name Originality
• Removal of the terrific shop experience.
• Threat of decline in elite sales.

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

Another alternative that the company could think about, is to broaden towards the international markets without closing its domestic shops that contributes to the major part of revenues of the business. The advantages and disadvantages connected to Alternative 3 are given listed below;

Pros:

• Lowering competitors danger
• Access to the world markets
• Enlarging consumer base
• Big Earnings
• Expedition of brand-new international markets.
• Boost in profits from worldwide markets.
• Profits diversity.
• Action towards being a strong worldwide brand.

Cons:

• Continuation of concerns connected to variety.
• Differences in cultures might led to a failure of the brand particularly in Asian countries.
• Low incomes at initial levels.
• Boost in marketing expenses to get market share.



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