Recommendations of Aditya Birla Group Cementing Indias Position In The League Of Fortune 500 Companies Case Help

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Recommendations of Aditya Birla Group Cementing Indias Position In The League Of Fortune 500 Companies Case Study Help

On the basis of above internal and external analysis of the business in addition to the evaluation of different options, the company is suggested to consider alternative 3. As alternative 3 would enable the business to expand in worldwide markets with no reduction in its regional profits and any deterioration of its market position. By thinking about Alternative 3, the company could preserve its store experience and brand name originality. Nevertheless, it might likewise consider alternative 2 that could allow the company to access the markets with no possible investment. The company could pursue alternative 1 which would make it possible for the company to focus on prospective worldwide markets rather than the regional markets but as the company is extremely dependent on the regional markets with 90% of its shops in the United States, there fore pursuing option 1 would result in the significant decline in company's income. The company is advised to consider alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of Aditya Birla Group Cementing Indias Position In The League Of Fortune 500 Companies Case Analysis Stores

Growth towards international markets through opening new shops in other Europe and Asian countries with closing domestic stores is although a great option for increasing the worldwide existence of the business. The closing of domestic shops might extremely affect the revenues of the firm as above 90% of its stores are located domestically and closing those stores would ultimately reduce the incomes of the firm. The company 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 broaden in international markets along with the removal of problems raised in its regional markets related to its variety. The pros and Cons for Option 1 are listed below;

Pros:

• Expedition of brand-new global markets.
• Increase in earnings from international markets.
• Removal of issues related to diversity.
• Earnings diversification.
• Step towards being a strong global brand name.

Cons:

• Loss of comprehensive earnings from the local markets.
• Boost in competitors.
• Distinctions in cultures could led to a failure of the brand name especially in Asian countries.
• Low earnings at preliminary levels.
• Increase in marketing expenses to acquire market share.

Alternative-2: Introduction of Click and Recommendations of Aditya Birla Group Cementing Indias Position In The League Of Fortune 500 Companies Case Analysis Stores

Alternative 2 includes the intro of online market locations through generating a proper business's site. With the increased patterns towards online shopping, the online stores like Amazon, Alibaba etc. could present an extreme risk to the marketplace share of company. Moreover, the rivals are shifting towards click and Recommendations of Aditya Birla Group Cementing Indias Position In The League Of Fortune 500 Companies Case Analysis stores with Space introducing Piperline. This shift towards online markets could minimize the earnings for company. In this scenario the company might consider presenting Click and Recommendations of Aditya Birla Group Cementing Indias Position In The League Of Fortune 500 Companies Case Analysis stores. These shops with a low requirement of funds to settle would enable the business to reach global markets, without ending its domestic stores. The benefits and drawbacks of option 2 are offered as follows;

Pros:

• Low financial investment
• Reducing competitors danger
• Access to the world markets
• Increasing the size of consumer base
• Easy to manage
• Big Profits
• Low Operating Expense
• Easy new market entryway

Cons:

• Risk to the marketplace position
• Removal of brand name Individuality
• Elimination of the great store experience.
• Danger of decrease in elite sales.

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

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

Pros:

• Minimizing competition threat
• Access to the world markets
• Expanding consumer base
• Large Profits
• Exploration of new worldwide markets.
• Increase in earnings from international markets.
• Profits diversity.
• Step towards being a strong worldwide brand.

Cons:

• Extension of issues connected to diversity.
• Differences in cultures might caused a failure of the brand name specifically in Asian nations.
• Low profits at preliminary levels.
• Boost in marketing expenditures to get market share.



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