Recommendations of Warren E Buffett 2005 Case Help

Home >> Darden Business School >> Warren E Buffett 2005 >> Recommendations

Recommendations of Warren E Buffett 2005 Case Study Solution

On the basis of above internal and external analysis of the business in addition to the evaluation of various alternatives, the business is suggested to think about alternative 3. As alternative 3 would permit the company to broaden in worldwide markets with no reduction in its regional revenues and any degeneration of its market position. By considering Alternative 3, the company could preserve its shop experience and brand originality. However, it could likewise think about alternative 2 that could allow the company to access the markets without any potential financial investment. The company might pursue alternative 1 which would enable the company to focus on potential international markets rather than the regional markets but as the company is extremely dependent on the regional markets with 90% of its shops in the US, there fore pursuing option 1 would result in the substantial decrease in company's profits. The company is recommended to consider alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of Warren E Buffett 2005 Case Solution Stores

The business has a long term market position in US which can not be produced quickly in the brand-new markets. The choice would help the company to broaden in international markets along with the removal of problems raised in its local markets related to its variety.

Pros:

• Expedition of new worldwide markets.
• Boost in profits from international markets.
• Elimination of issues connected to diversity.
• Earnings diversification.
• Action towards being a strong global brand.

Cons:

• Loss of substantial incomes from the regional markets.
• Increase in competitors.
• Distinctions in cultures could caused a failure of the brand particularly in Asian nations.
• Low profits at preliminary levels.
• Boost in marketing expenditures to acquire market share.

Alternative-2: Introduction of Click and Recommendations of Warren E Buffett 2005 Case Analysis Stores

With the increased patterns towards online shopping, the online stores like Amazon, Alibaba etc. might present an extreme hazard to the market share of company. In this scenario the business might consider introducing Click and Recommendations of Warren E Buffett 2005 Case Analysis stores. These stores with a low requirement of funds to settle would enable the company to reach worldwide markets, without ending its domestic stores.

Pros:

• Low financial investment
• Minimizing competition threat
• Access to the world markets
• Enlarging consumer base
• Easy to manage
• Big Earnings
• Low Operating Expense
• Easy new market entryway

Cons:

• Hazard to the market position
• Removal of brand Uniqueness
• Removal of the terrific shop experience.
• Danger of decline in elite sales.

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

Another option that the company might consider, is to expand towards the worldwide markets without closing its domestic shops that adds to the huge part of incomes of the company. The advantages and disadvantages associated with Alternative 3 are given listed below;

Pros:

• Reducing competition danger
• Access to the world markets
• Increasing the size of customer base
• Large Incomes
• Exploration of new global markets.
• Increase in income from worldwide markets.
• Earnings diversity.
• Step towards being a strong global brand name.

Cons:

• Extension of problems related to variety.
• Distinctions in cultures might led to a failure of the brand particularly in Asian nations.
• Low profits at initial levels.
• Increase in marketing expenses to gain market share.



This is sample work and not applicable to real case study. Please place the order on the website to get your own originally done case solution.