Recommendations of War Of The Handbags The Takeover Battle For Gucci Group Nv Case Analysis

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Recommendations of War Of The Handbags The Takeover Battle For Gucci Group Nv Case Study Analysis

On the basis of above internal and external analysis of the company along with the examination of various options, the company is advised to consider alternative 3. As alternative 3 would permit the company to broaden in worldwide markets without any reduction in its regional incomes and any deterioration of its market position. The business might pursue alternative 1 which would make it possible for the business to focus on prospective global markets rather than the local markets however as the business is extremely reliant on the regional markets with 90% of its shops in the United States, there fore pursuing alternative 1 would result in the substantial decrease in business's income.

Aletrnative-1: Expanding International Brick and Recommendations of War Of The Handbags The Takeover Battle For Gucci Group Nv Case Analysis Stores

Growth towards worldwide markets through opening brand-new stores in other Europe and Asian nations with closing domestic stores is although a great alternative for increasing the international presence of the business. The closing of domestic shops might highly affect the earnings of the firm as above 90% of its stores are located locally and closing those shops would eventually decrease the earnings of the firm. The business has a long term market position in US which can not be produced quickly in the brand-new markets. The option would help the business to expand in worldwide markets in addition to the elimination of problems raised in its regional markets associated with its variety. The benefits and drawbacks for Alternative 1 are noted below;

Pros:

• Expedition of brand-new worldwide markets.
• Increase in profits from worldwide markets.
• Elimination of concerns related to diversity.
• Earnings diversification.
• Step towards being a strong worldwide brand name.

Cons:

• Loss of comprehensive revenues from the local markets.
• Increase in competition.
• Distinctions in cultures could resulted in a failure of the brand especially in Asian countries.
• Low earnings at preliminary levels.
• Increase in marketing expenses to get market share.

Alternative-2: Introduction of Click and Recommendations of War Of The Handbags The Takeover Battle For Gucci Group Nv Case Solution Stores

With the increased patterns towards online shopping, the online shops like Amazon, Alibaba and so on might posture an extreme hazard to the market share of company. In this circumstance the business could consider presenting Click and Recommendations of War Of The Handbags The Takeover Battle For Gucci Group Nv Case Analysis shops. These stores 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
• Reducing competition hazard
• Access to the world markets
• Enlarging consumer base
• Easy to manage
• Big Earnings
• Low Operating Expense
• Easy new market entryway

Cons:

• Threat to the marketplace position
• Removal of brand name Originality
• Removal of the excellent shop experience.
• Risk of decline in elite sales.

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

Another alternative that the company could think about, is to expand towards the global markets without closing its domestic shops that contributes to the major part of profits of the company. The pros and cons associated with Alternative 3 are provided below;

Pros:

• Lowering competitors threat
• Access to the world markets
• Increasing the size of customer base
• Big Revenues
• Expedition of new worldwide markets.
• Boost in revenue from global markets.
• Revenue diversification.
• Step towards being a strong international brand.

Cons:

• Continuation of concerns related to diversity.
• Differences in cultures could led to a failure of the brand name particularly in Asian countries.
• Low earnings at preliminary levels.
• Increase in marketing expenses to gain market share.



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