Recommendations of Aditya Birla Group: Redesigning To Become A Fortune 500 Company Case Analysis

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Recommendations of Aditya Birla Group: Redesigning To Become A Fortune 500 Company Case Study Analysis

On the basis of above internal and external analysis of the company along with the evaluation of various options, the business is advised to consider alternative 3. As alternative 3 would enable the business to broaden in worldwide markets without any reduction in its regional earnings and any deterioration of its market position. The company could pursue alternative 1 which would enable the business to focus on possible worldwide markets rather than the regional markets however as the company is highly dependent on the local markets with 90% of its stores in the United States, there fore pursuing option 1 would result in the considerable decrease in company's revenue.

Aletrnative-1: Expanding International Brick and Recommendations of Aditya Birla Group: Redesigning To Become A Fortune 500 Company Case Analysis Stores

Expansion towards global markets through opening new shops in other Europe and Asian nations with closing domestic stores is although an excellent alternative for increasing the global existence of the company. The closing of domestic shops might extremely affect the profits of the firm as above 90% of its shops are situated domestically and closing those stores would ultimately decrease the incomes of the company. The company has a long term market position in US which can not be created soon in the brand-new markets. The alternative would assist the company to expand in international markets together with the elimination of issues raised in its local markets connected to its variety. The advantages and disadvantages for Alternative 1 are listed below;

Pros:

• Expedition of new global markets.
• Increase in earnings from global markets.
• Removal of problems associated with diversity.
• Earnings diversity.
• Step towards being a strong international brand name.

Cons:

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

Alternative-2: Introduction of Click and Recommendations of Aditya Birla Group: Redesigning To Become A Fortune 500 Company Case Analysis Stores

With the increased trends towards online shopping, the online shops like Amazon, Alibaba and so on might present an extreme risk to the market share of company. In this situation the business could think about introducing Click and Recommendations of Aditya Birla Group: Redesigning To Become A Fortune 500 Company Case Analysis shops. 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
• Lowering competition danger
• Access to the world markets
• Enlarging consumer base
• Easy to manage
• Large Earnings
• Low Operating Costs
• Easy new market entryway

Cons:

• Risk to the market position
• Elimination of brand name Originality
• Removal of the excellent shop experience.
• Risk of decrease 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 stores that adds to the huge part of revenues of the company. The advantages and disadvantages associated with Alternative 3 are provided listed below;

Pros:

• Lowering competition threat
• Access to the world markets
• Expanding consumer base
• Big Revenues
• Expedition of new global markets.
• Increase in revenue from international markets.
• Earnings diversity.
• Step towards being a strong worldwide brand.

Cons:

• Continuation of problems associated with variety.
• Differences in cultures could resulted in a failure of the brand specifically in Asian countries.
• Low revenues at initial levels.
• Increase in marketing expenses to acquire market share.



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