Recommendations of The Merger Of Hewlett-Packard And Compaq (C): Epilogue Case Help

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Recommendations of The Merger Of Hewlett-Packard And Compaq (C): Epilogue Case Study Solution

RecommendationsOn the basis of above internal and external analysis of the company along with the assessment of various options, the business is recommended to consider alternative 3. As alternative 3 would enable the business to broaden in international markets without any reduction in its local profits and any degeneration of its market position. The business could pursue alternative 1 which would make it possible for the company to focus on potential global markets rather than the local markets but as the business is extremely dependent on the regional markets with 90% of its stores in the US, there fore pursuing alternative 1 would result in the substantial decrease in company's earnings.

Aletrnative-1: Expanding International Brick and Recommendations of The Merger Of Hewlett-Packard And Compaq (C): Epilogue Case Help Stores

International SegmentsThe 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 removal of problems raised in its local markets related to its diversity.

Pros:

• Expedition of new global markets.
• Increase in earnings from worldwide markets.
• Removal of concerns associated with variety.
• Revenue diversification.
• Step towards being a strong global brand name.

Cons:

• Loss of extensive revenues from the regional markets.
• Increase in competitors.
• Differences in cultures might resulted in a failure of the brand specifically in Asian countries.
• Low profits at preliminary levels.
• Increase in marketing expenditures to get market share.

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

With the increased trends towards online shopping, the online stores like Amazon, Alibaba and so on might present a severe hazard to the market share of company. In this situation the business might think about introducing Click and Recommendations of The Merger Of Hewlett-Packard And Compaq (C): Epilogue Case Help stores. These shops with a low requirement of funds to settle would allow the company to reach worldwide markets, without ending its domestic shops.

Pros:

• Low financial investment
• Minimizing competition risk
• Access to the world markets
• Expanding consumer base
• Easy to manage
• Big Incomes
• Low Operating Costs
• Easy new market entrance

Cons:

• Risk to the market position
• Removal of brand name Uniqueness
• Removal of the fantastic shop experience.
• Danger of decrease in elite sales.

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

Another alternative that the company might think about, is to broaden towards the global markets without closing its domestic stores that adds to the huge part of earnings of the business. The benefits and drawbacks associated with Alternative 3 are offered listed below;

Pros:

• Decreasing competitors threat
• Access to the world markets
• Enlarging customer base
• Big Profits
• Expedition of new global markets.
• Increase in earnings from worldwide markets.
• Income diversity.
• Action towards being a strong global brand.

Cons:

• Extension of issues connected to diversity.
• Distinctions in cultures might resulted in a failure of the brand especially in Asian nations.
• Low earnings at preliminary levels.
• Boost in marketing expenses to get market share.



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