Recommendations of Victoria Chemicals Plc (B): The Merseyside And Rotterdam Projects Case Solution

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Recommendations of Victoria Chemicals Plc (B): The Merseyside And Rotterdam Projects Case Study Solution

On the basis of above internal and external analysis of the business together with the assessment of various alternatives, the company is suggested to consider alternative 3. As alternative 3 would permit the company to broaden in global markets without any decrease in its local incomes and any deterioration of its market position. By considering Alternative 3, the company might keep its store experience and brand name uniqueness. Nevertheless, it could likewise consider alternative 2 that could permit the company to access the markets with no possible financial investment. Although, the business could pursue alternative 1 which would allow the company to concentrate on possible global markets rather than the regional markets however as the business is highly dependent on the regional markets with 90% of its stores in the US, there fore pursuing option 1 would result in the substantial decrease in business's profits. For that reason, the company is suggested to consider alternative 3.

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

Growth towards international markets through opening brand-new stores in other Europe and Asian countries with closing domestic shops is although an excellent alternative for increasing the worldwide presence of the business. Nevertheless, the closing of domestic shops could extremely affect the revenues of the firm as above 90% of its stores are located locally and closing those shops would ultimately reduce the revenues of the firm. Additionally, the business has a long term market position in US which can not be generated soon in the brand-new markets. The option would assist the business to broaden in global markets along with the elimination of issues raised in its regional markets associated with its diversity. The benefits and drawbacks for Alternative 1 are noted below;

Pros:

• Exploration of brand-new worldwide markets.
• Boost in income from international markets.
• Removal of issues connected to diversity.
• Revenue diversification.
• Action towards being a strong international brand.

Cons:

• Loss of comprehensive revenues from the regional markets.
• Increase in competitors.
• Distinctions in cultures could resulted in a failure of the brand 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 Victoria Chemicals Plc (B): The Merseyside And Rotterdam Projects Case Help Stores

Alternative 2 includes the intro of online market places through generating a proper business's site. With the increased patterns towards online shopping, the online shops like Amazon, Alibaba etc. could posture a serious hazard to the marketplace share of company. The rivals are moving towards click and Recommendations of Victoria Chemicals Plc (B): The Merseyside And Rotterdam Projects Case Solution shops with Gap introducing Piperline. This shift towards online markets could reduce the incomes for business. In this scenario the company could think about introducing Click and Recommendations of Victoria Chemicals Plc (B): The Merseyside And Rotterdam Projects Case Solution shops. These stores with a low requirement of funds to settle would enable the company to reach international markets, without ending its domestic shops. The pros and cons of option 2 are provided as follows;

Pros:

• Low investment
• Reducing competition danger
• Access to the world markets
• Expanding customer base
• Easy to manage
• Large Earnings
• Low Operating Expense
• Easy new market entryway

Cons:

• Risk to the market position
• Removal of brand Individuality
• Removal of the great shop experience.
• Threat of decrease in elite sales.

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

Another option that the business could think about, is to broaden towards the worldwide markets without closing its domestic stores that contributes to the major part of earnings of the business. The benefits and drawbacks related to Alternative 3 are offered listed below;

Pros:

• Decreasing competition danger
• Access to the world markets
• Enlarging customer base
• Large Earnings
• Expedition of brand-new worldwide markets.
• Increase in income from worldwide markets.
• Income diversification.
• Step towards being a strong global brand.

Cons:

• Continuation of problems related to diversity.
• Differences in cultures might led to a failure of the brand specifically in Asian nations.
• Low profits at preliminary levels.
• Increase in marketing expenses to gain market share.



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