Recommendations of Victoria Chemicals Plc (A) And (B) Case Analysis

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Recommendations of Victoria Chemicals Plc (A) And (B) Case Study Solution

On the basis of above internal and external analysis of the business along with the examination of numerous alternatives, the business is advised to think about alternative 3. As alternative 3 would permit the company to expand in global markets without any reduction in its local earnings and any degeneration of its market position. The business might pursue alternative 1 which would make it possible for the company to focus on potential international markets rather than the regional markets however as the business is highly dependent on the local markets with 90% of its shops in the United States, there fore pursuing alternative 1 would result in the significant decline in business's revenue.

Aletrnative-1: Expanding International Brick and Recommendations of Victoria Chemicals Plc (A) And (B) Case Analysis Stores

Growth towards global markets through opening new stores in other Europe and Asian nations with closing domestic stores is although an excellent option for increasing the worldwide presence of the business. Nevertheless, the closing of domestic stores might highly impact the revenues of the company as above 90% of its shops are located domestically and closing those stores would ultimately decrease the incomes of the firm. The business has a long term market position in United States which can not be created soon in the new markets. The alternative would assist the business to expand in global markets together with the elimination of problems raised in its local markets related to its diversity. The pros and Cons for Option 1 are listed below;

Pros:

• Exploration of brand-new global markets.
• Increase in income from global markets.
• Removal of concerns connected to variety.
• Income diversity.
• Step towards being a strong international brand.

Cons:

• Loss of extensive earnings from the regional markets.
• Increase in competition.
• Differences in cultures might led to a failure of the brand name specifically in Asian nations.
• Low incomes at initial levels.
• Boost in marketing expenditures to acquire market share.

Alternative-2: Introduction of Click and Recommendations of Victoria Chemicals Plc (A) And (B) Case Solution Stores

Alternative 2 includes the introduction of online market locations through generating a correct business's website. With the increased trends towards online shopping, the online shops like Amazon, Alibaba and so on might present a serious threat to the marketplace share of business. Additionally, the competitors are shifting towards click and Recommendations of Victoria Chemicals Plc (A) And (B) Case Solution stores with Space introducing Piperline. This shift towards online markets could minimize the profits for company. In this circumstance the company might consider introducing Click and Recommendations of Victoria Chemicals Plc (A) And (B) Case Analysis stores. These stores with a low requirement of funds to settle would make it possible for the company to reach global markets, without ending its domestic stores. The benefits and drawbacks of option 2 are offered as follows;

Pros:

• Low financial investment
• Decreasing competition hazard
• Access to the world markets
• Increasing the size of consumer base
• Easy to manage
• Large Revenues
• Low Operating Expense
• Easy brand-new market entrance

Cons:

• Danger to the marketplace position
• Removal of brand name Uniqueness
• Elimination of the excellent store experience.
• Threat of decline 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 adds to the major part of earnings of the business. The benefits and drawbacks associated with Alternative 3 are provided listed below;

Pros:

• Lowering competition threat
• Access to the world markets
• Expanding customer base
• Large Profits
• Exploration of brand-new international markets.
• Increase in income from international markets.
• Income diversity.
• Action towards being a strong global brand.

Cons:

• Continuation of problems connected to variety.
• Differences in cultures could caused a failure of the brand name particularly in Asian nations.
• Low incomes at initial levels.
• Increase in marketing expenses to gain market share.



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