Recommendations of Westmoreland Energy Inc: Power Project At Zhangze China Case Analysis

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Recommendations of Westmoreland Energy Inc: Power Project At Zhangze China Case Study Solution

On the basis of above internal and external analysis of the company together with the examination of different alternatives, the company is recommended to think about alternative 3. As alternative 3 would enable the business to expand in international markets with no reduction in its regional earnings and any wear and tear of its market position. By considering Alternative 3, the company might maintain its store experience and brand individuality. Nevertheless, it could likewise think about alternative 2 that could allow the business to access the marketplaces with no potential investment. The business might pursue alternative 1 which would allow the business to focus on prospective international markets rather than the local markets however as the company is extremely dependent on the local markets with 90% of its shops in the United States, there fore pursuing alternative 1 would result in the considerable decline in company's revenue. Therefore, the company is advised to think about alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of Westmoreland Energy Inc: Power Project At Zhangze China Case Solution Stores

Growth towards global markets through opening new shops in other Europe and Asian nations with closing domestic shops is although an excellent alternative for increasing the international presence of the company. However, the closing of domestic shops might highly affect the incomes of the firm as above 90% of its stores are located domestically and closing those shops would eventually lower the revenues of the firm. Additionally, the company has a long term market position in United States which can not be created soon in the new markets. The choice would help the company to expand in worldwide markets together with the elimination of problems raised in its regional markets related to its variety. The advantages and disadvantages for Option 1 are listed below;

Pros:

• Exploration of brand-new global markets.
• Boost in revenue from worldwide markets.
• Removal of concerns connected to variety.
• Earnings diversification.
• Step towards being a strong global brand.

Cons:

• Loss of extensive incomes from the regional markets.
• Increase in competitors.
• Differences in cultures could led to a failure of the brand specifically in Asian countries.
• Low revenues at initial levels.
• Boost in marketing expenditures to gain market share.

Alternative-2: Introduction of Click and Recommendations of Westmoreland Energy Inc: Power Project At Zhangze China Case Help Stores

With the increased trends towards online shopping, the online stores like Amazon, Alibaba and so on could posture a severe risk to the market share of company. In this circumstance the business might think about presenting Click and Recommendations of Westmoreland Energy Inc: Power Project At Zhangze China Case Solution stores. These shops with a low requirement of funds to settle would enable the business to reach international markets, without ending its domestic stores.

Pros:

• Low investment
• Reducing competition danger
• Access to the world markets
• Expanding consumer base
• Easy to manage
• Big Earnings
• Low Operating Expense
• Easy brand-new market entryway

Cons:

• Risk to the marketplace position
• Elimination of brand name Originality
• Elimination of the fantastic shop experience.
• Threat of decrease in elite sales.

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

Another choice that the business might think about, is to expand towards the international markets without closing its domestic stores that contributes to the huge part of profits of the company. The pros and cons associated with Alternative 3 are provided listed below;

Pros:

• Lowering competition threat
• Access to the world markets
• Expanding consumer base
• Big Earnings
• Exploration of new international markets.
• Boost in income from global markets.
• Earnings diversity.
• Action towards being a strong global brand name.

Cons:

• Continuation of concerns associated with diversity.
• Differences in cultures could caused a failure of the brand name particularly in Asian nations.
• Low earnings at initial levels.
• Boost in marketing expenditures to get market share.



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