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

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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 in addition to the examination of different alternatives, the company is recommended to consider alternative 3. As alternative 3 would allow the company to expand in international markets without any decrease in its regional revenues and any wear and tear of its market position. By thinking about Alternative 3, the company could keep its store experience and brand name originality. It might also think about alternative 2 that could permit the business to access the markets without any prospective investment. Although, the company might pursue alternative 1 which would allow the business to focus on potential global markets instead of the local markets but as the business is highly dependent on the regional markets with 90% of its shops in the United States, there fore pursuing alternative 1 would result in the considerable decline in company's profits. For that reason, the business is recommended to think about alternative 3.

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

Growth towards global markets through opening brand-new shops in other Europe and Asian nations with closing domestic shops is although a good alternative for increasing the worldwide presence of the business. However, the closing of domestic shops might highly impact the incomes of the firm as above 90% of its stores lie domestically and closing those stores would eventually minimize the profits of the firm. Additionally, the business has a long term market position in United States which can not be generated soon in the new markets. The option would help the business to broaden in worldwide markets along with the removal of problems raised in its regional markets connected to its variety. The pros and Cons for Alternative 1 are listed below;

Pros:

• Expedition of new worldwide markets.
• Increase in earnings from global markets.
• Removal of issues connected to diversity.
• Income diversity.
• Step towards being a strong international brand name.

Cons:

• Loss of substantial earnings from the regional markets.
• Boost in competitors.
• Distinctions in cultures might caused a failure of the brand name specifically in Asian nations.
• Low revenues at preliminary levels.
• Boost in marketing expenses to acquire market share.

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

With the increased trends towards online shopping, the online stores like Amazon, Alibaba and so on could pose a serious danger to the market share of company. In this circumstance the company could think about presenting Click and Recommendations of War Of The Handbags: The Takeover Battle For Gucci Group Nv Case Solution shops. These shops with a low requirement of funds to settle would make it possible for the company to reach international markets, without ending its domestic shops.

Pros:

• Low investment
• Lowering competition threat
• Access to the world markets
• Increasing the size of customer base
• Easy to manage
• Large Earnings
• Low Operating Costs
• Easy brand-new market entryway

Cons:

• Hazard to the marketplace position
• Elimination of brand Individuality
• Elimination of the excellent shop experience.
• Risk of decline 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 business. The pros and cons associated with Alternative 3 are offered below;

Pros:

• Minimizing competitors hazard
• Access to the world markets
• Enlarging customer base
• Large Revenues
• Exploration of brand-new international markets.
• Increase in profits from worldwide markets.
• Income diversity.
• Action towards being a strong international brand name.

Cons:

• Continuation of problems connected to diversity.
• Distinctions in cultures might caused a failure of the brand name particularly in Asian nations.
• Low profits at initial levels.
• Increase in marketing expenditures to get market share.



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