Recommendations of Volvo Renault: The Contest For Shareholder Approval Case Analysis

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Recommendations of Volvo Renault: The Contest For Shareholder Approval 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 think about alternative 3. As alternative 3 would permit the company to broaden in international markets without any decrease in its regional profits and any degeneration of its market position. By thinking about Alternative 3, the company could keep its store experience and brand name individuality. It could likewise consider alternative 2 that could enable the business to access the markets without any prospective investment. Although, the business could pursue alternative 1 which would enable the business to focus on possible international markets rather than the regional markets but as the company is highly depending on the regional markets with 90% of its shops in the United States, there fore pursuing alternative 1 would result in the considerable decrease in business's earnings. For that reason, the business is suggested to think about alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of Volvo Renault: The Contest For Shareholder Approval Case Help Stores

Growth towards worldwide markets through opening new stores in other Europe and Asian nations with closing domestic shops is although a good option for increasing the global presence of the company. However, the closing of domestic shops might highly impact the revenues of the firm as above 90% of its stores are located locally and closing those stores would ultimately reduce the incomes of the firm. Additionally, the business has a long term market position in US which can not be created quickly in the new markets. The option would assist the business to expand in global markets together with the removal of issues raised in its local markets connected to its diversity. The pros and Cons for Alternative 1 are listed below;

Pros:

• Expedition of brand-new international markets.
• Boost in revenue from global markets.
• Elimination of problems connected to diversity.
• Profits diversity.
• Step towards being a strong worldwide brand.

Cons:

• Loss of substantial incomes from the local markets.
• Boost in competition.
• Differences in cultures might resulted in a failure of the brand specifically in Asian countries.
• Low revenues at preliminary levels.
• Boost in marketing expenditures to gain market share.

Alternative-2: Introduction of Click and Recommendations of Volvo Renault: The Contest For Shareholder Approval Case Solution Stores

Alternative 2 consists of the intro of online market places through generating an appropriate business's site. With the increased trends towards online shopping, the online stores like Amazon, Alibaba and so on might present a serious danger to the marketplace share of company. The competitors are shifting towards click and Recommendations of Volvo Renault: The Contest For Shareholder Approval Case Help stores with Space introducing Piperline. This shift towards online markets could decrease the incomes for business. In this situation the business might think about introducing Click and Recommendations of Volvo Renault: The Contest For Shareholder Approval Case Help stores. These stores with a low requirement of funds to settle would allow the business to reach international markets, without ending its domestic shops. The benefits and drawbacks of alternative 2 are given as follows;

Pros:

• Low investment
• Reducing competition danger
• Access to the world markets
• Expanding customer base
• Easy to handle
• Large Revenues
• Low Operating Costs
• Easy new market entryway

Cons:

• Hazard to the market position
• Elimination of brand name Originality
• Elimination of the great shop experience.
• Risk of decrease in elite sales.

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

Another choice that the company could consider, is to broaden towards the global markets without closing its domestic shops that contributes to the major part of revenues of the company. The benefits and drawbacks connected to Alternative 3 are provided listed below;

Pros:

• Lowering competitors threat
• Access to the world markets
• Increasing the size of consumer base
• Large Profits
• Exploration of new international markets.
• Boost in earnings from worldwide markets.
• Profits diversity.
• Step towards being a strong international brand.

Cons:

• Continuation of concerns associated with variety.
• Differences in cultures might caused a failure of the brand name specifically in Asian countries.
• Low revenues at initial levels.
• Boost in marketing expenses to get market share.



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