Recommendations of The Merger Of Hewlett-Packard And Compaq (B): Deal Design Case Help

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Recommendations of The Merger Of Hewlett-Packard And Compaq (B): Deal Design Case Study Solution

On the basis of above internal and external analysis of the business together with the examination of different alternatives, the company is recommended to consider alternative 3. As alternative 3 would enable the business to expand in worldwide markets with no decrease in its local profits and any degeneration of its market position. By considering Alternative 3, the business could preserve its store experience and brand individuality. Nevertheless, it could also consider alternative 2 that could allow the company to access the marketplaces with no prospective investment. Although, the business might pursue alternative 1 which would enable the company to concentrate on prospective worldwide markets rather than the local markets but as the company is highly based on the regional markets with 90% of its shops in the United States, there fore pursuing option 1 would result in the significant decrease in company's revenue. The company is recommended to think about alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of The Merger Of Hewlett-Packard And Compaq (B): Deal Design Case Analysis Stores

The business has a long term market position in United States which can not be generated quickly in the brand-new markets. The alternative would assist the company to expand in international markets along with the removal of problems raised in its regional markets related to its diversity.

Pros:

• Expedition of new international markets.
• Boost in earnings from worldwide markets.
• Elimination of issues associated with diversity.
• Income diversification.
• Action towards being a strong global brand name.

Cons:

• Loss of substantial incomes from the regional markets.
• Boost in competition.
• Distinctions in cultures might resulted in a failure of the brand especially in Asian countries.
• Low incomes at initial levels.
• Increase in marketing expenditures to gain market share.

Alternative-2: Introduction of Click and Recommendations of The Merger Of Hewlett-Packard And Compaq (B): Deal Design Case Help Stores

Alternative 2 consists of the introduction of online market places through creating a correct company's site. With the increased trends towards online shopping, the online shops like Amazon, Alibaba and so on could pose a severe hazard to the market share of business. The rivals are shifting towards click and Recommendations of The Merger Of Hewlett-Packard And Compaq (B): Deal Design Case Help stores with Space presenting Piperline. This shift towards online markets might minimize the revenues for company. In this circumstance the business might think about introducing Click and Recommendations of The Merger Of Hewlett-Packard And Compaq (B): Deal Design Case Analysis stores. These stores with a low requirement of funds to settle would make it possible for the business to reach international markets, without ending its domestic stores. The advantages and disadvantages of alternative 2 are provided as follows;

Pros:

• Low investment
• Reducing competitors hazard
• Access to the world markets
• Enlarging customer base
• Easy to handle
• Large Revenues
• Low Operating Costs
• Easy brand-new market entrance

Cons:

• Threat to the market position
• Removal of brand name Originality
• Elimination of the great store experience.
• Threat of decrease in elite sales.

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

Another choice that the company might consider, is to expand towards the worldwide markets without closing its domestic stores that adds to the huge part of revenues of the business. The pros and cons associated with Alternative 3 are offered below;

Pros:

• Lowering competition threat
• Access to the world markets
• Increasing the size of customer base
• Big Incomes
• Expedition of brand-new global markets.
• Increase in profits from global markets.
• Income diversification.
• Step towards being a strong international brand.

Cons:

• Continuation of problems connected to variety.
• Distinctions in cultures might resulted in a failure of the brand specifically in Asian countries.
• Low earnings at preliminary levels.
• Boost in marketing expenditures to get market share.



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