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

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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 company along with the examination of numerous alternatives, the business is suggested to think about alternative 3. As alternative 3 would permit the business to broaden in international markets with no reduction in its regional revenues and any deterioration of its market position. By thinking about Alternative 3, the business might keep its store experience and brand name originality. However, it could also think about alternative 2 that could permit the company to access the markets with no prospective investment. Although, the business might pursue alternative 1 which would make it possible for the business to concentrate on potential worldwide markets rather than the local markets however as the business is highly depending on the local markets with 90% of its stores in the United States, there fore pursuing alternative 1 would result in the substantial decrease in business's revenue. The company is recommended 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 stores in other Europe and Asian countries with closing domestic shops is although an excellent choice for increasing the worldwide existence of the company. The closing of domestic shops might extremely impact the profits of the company as above 90% of its shops are located locally and closing those stores would eventually decrease the revenues of the firm. Moreover, the business has a long term market position in United States which can not be created soon in the new markets. The alternative would assist the company to broaden in international markets together with the removal of issues raised in its local markets related to its diversity. The pros and Cons for Alternative 1 are listed below;

Pros:

• Expedition of brand-new international markets.
• Increase in earnings from global markets.
• Removal of problems associated with diversity.
• Revenue diversification.
• Action towards being a strong international brand.

Cons:

• Loss of substantial profits from the local markets.
• Boost in competitors.
• Distinctions in cultures could resulted in a failure of the brand especially in Asian countries.
• Low earnings at preliminary levels.
• Boost 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

With the increased patterns towards online shopping, the online stores like Amazon, Alibaba etc. might posture a severe hazard to the market share of business. In this situation the business could think about introducing Click and Recommendations of Aditya Birla Group: Cementing Indias Position In The League Of Fortune 500 Companies Case Solution stores. These shops with a low requirement of funds to settle would allow the business to reach global markets, without ending its domestic stores.

Pros:

• Low financial investment
• Reducing competition threat
• Access to the world markets
• Increasing the size of consumer base
• Easy to handle
• Large Revenues
• Low Operating Expense
• Easy new market entrance

Cons:

• Hazard to the market position
• Removal of brand name Uniqueness
• Removal of the excellent shop experience.
• Danger of decrease 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 stores that adds to the huge part of profits of the company. The advantages and disadvantages connected to Alternative 3 are provided below;

Pros:

• Reducing competitors threat
• Access to the world markets
• Increasing the size of consumer base
• Large Earnings
• Exploration of new worldwide markets.
• Increase in earnings from international markets.
• Revenue diversification.
• Action towards being a strong international brand.

Cons:

• Continuation of concerns connected to diversity.
• Distinctions in cultures could resulted in a failure of the brand name especially in Asian nations.
• Low earnings at initial levels.
• Increase in marketing expenses to acquire market share.



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