Recommendations of The Merger Of Union Bank Of Switzerland And Swiss Bank Corporation (A): The Proposed Merger Case Analysis
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Recommendations of The Merger Of Union Bank Of Switzerland And Swiss Bank Corporation (A): The Proposed Merger Case Study Solution
On the basis of above internal and external analysis of the company along with the evaluation of different alternatives, the company is advised to think about alternative 3. As alternative 3 would permit the company to expand in international markets without any decrease in its local profits and any deterioration of its market position. The business could pursue alternative 1 which would make it possible for the company to focus on potential worldwide markets rather than the regional markets but as the business is highly reliant on the local markets with 90% of its shops in the United States, there fore pursuing alternative 1 would result in the considerable decline in company's earnings.
Aletrnative-1: Expanding International Brick and Recommendations of The Merger Of Union Bank Of Switzerland And Swiss Bank Corporation (A): The Proposed Merger Case Solution Stores
The company has a long term market position in United States which can not be generated quickly in the new markets. The alternative would assist the company to expand in worldwide markets along with the removal of concerns raised in its local markets related to its diversity.
Pros:
• Exploration of new global markets.
• Boost in revenue from global markets.
• Elimination of issues connected to variety.
• Earnings diversity.
• Step towards being a strong global brand.
Cons:
• Loss of substantial earnings from the local markets.
• Increase in competition.
• Differences in cultures could caused a failure of the brand specifically in Asian countries.
• Low earnings at initial levels.
• Increase in marketing expenditures to gain market share.
Alternative-2: Introduction of Click and Recommendations of The Merger Of Union Bank Of Switzerland And Swiss Bank Corporation (A): The Proposed Merger Case Solution Stores
Alternative 2 consists of the introduction of online market places through generating an appropriate company's site. With the increased patterns towards online shopping, the online shops like Amazon, Alibaba etc. might posture a serious threat to the marketplace share of business. The competitors are shifting towards click and Recommendations of The Merger Of Union Bank Of Switzerland And Swiss Bank Corporation (A): The Proposed Merger Case Solution shops with Gap introducing Piperline. This shift towards online markets might decrease the incomes for business. In this scenario the company might consider introducing Click and Recommendations of The Merger Of Union Bank Of Switzerland And Swiss Bank Corporation (A): The Proposed Merger Case Analysis stores. These stores with a low requirement of funds to settle would make it possible for the business to reach worldwide markets, without ending its domestic stores. The pros and cons of option 2 are offered as follows;
Pros:
• Low financial investment
• Reducing competitors risk
• Access to the world markets
• Enlarging consumer base
• Easy to manage
• Big Earnings
• Low Operating Expense
• Easy new market entrance
Cons:
• Threat to the market position
• Elimination of brand name Originality
• Removal of the fantastic shop experience.
• Risk of decrease in elite sales.
Alternative-3: Expansion towards International Markets Without closing Domestic Stores
Another choice that the company might consider, is to broaden towards the worldwide markets without closing its domestic stores that contributes to the huge part of profits of the business. The advantages and disadvantages connected to Alternative 3 are given listed below;
Pros:
• Reducing competitors risk
• Access to the world markets
• Expanding consumer base
• Large Incomes
• Exploration of brand-new worldwide markets.
• Increase in income from worldwide markets.
• Income diversity.
• Action towards being a strong international brand name.
Cons:
• Continuation of problems associated with variety.
• Differences in cultures could caused a failure of the brand name especially in Asian countries.
• Low earnings at initial levels.
• Boost in marketing expenses to acquire market share.
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