Recommendations of Evolution Of Alstom: Role Of The French State Case Analysis

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Recommendations of Evolution Of Alstom: Role Of The French State Case Study Analysis

On the basis of above internal and external analysis of the business together with the evaluation of various options, the company is advised to consider alternative 3. As alternative 3 would allow the business to broaden in worldwide markets without any reduction in its local profits and any wear and tear of its market position. By considering Alternative 3, the company might keep its shop experience and brand individuality. It could likewise consider alternative 2 that could enable the business to access the markets without any possible financial investment. The business might pursue alternative 1 which would enable the business to focus on potential worldwide markets rather than the regional markets however as the company is extremely reliant on the regional markets with 90% of its shops in the US, there fore pursuing alternative 1 would result in the significant decline in company's earnings. For that reason, the company is recommended to consider alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of Evolution Of Alstom: Role Of The French State Case Help Stores

The company has a long term market position in United States which can not be generated soon in the brand-new markets. The alternative would help the company to broaden in worldwide markets along with the elimination of concerns raised in its regional markets related to its variety.

Pros:

• Exploration of new international markets.
• Boost in earnings from international markets.
• Removal of issues related to variety.
• Profits diversification.
• Step towards being a strong worldwide brand.

Cons:

• Loss of extensive earnings from the local markets.
• Boost in competitors.
• Differences in cultures might caused a failure of the brand name specifically in Asian countries.
• Low profits at preliminary levels.
• Increase in marketing expenditures to get market share.

Alternative-2: Introduction of Click and Recommendations of Evolution Of Alstom: Role Of The French State Case Analysis Stores

Alternative 2 includes the introduction of online market locations through creating a correct business's website. With the increased patterns towards online shopping, the online stores like Amazon, Alibaba and so on could posture a serious threat to the market share of company. The rivals are moving towards click and Recommendations of Evolution Of Alstom: Role Of The French State Case Analysis stores with Gap presenting Piperline. This shift towards online markets might decrease the incomes for company. In this circumstance the business might consider introducing Click and Recommendations of Evolution Of Alstom: Role Of The French State Case Help stores. These stores with a low requirement of funds to settle would allow the company to reach worldwide markets, without ending its domestic stores. The pros and cons of alternative 2 are provided as follows;

Pros:

• Low investment
• Lowering competitors danger
• Access to the world markets
• Increasing the size of customer base
• Easy to manage
• Big Incomes
• Low Operating Expense
• Easy new market entrance

Cons:

• Hazard to the marketplace position
• Elimination of brand name Individuality
• Removal of the great shop experience.
• Risk of decline in elite sales.

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

Another option that the company could consider, is to expand towards the global markets without closing its domestic shops that adds to the major part of incomes of the company. The advantages and disadvantages connected to Alternative 3 are given listed below;

Pros:

• Reducing competition risk
• Access to the world markets
• Expanding customer base
• Large Incomes
• Exploration of brand-new global markets.
• Increase in income from international markets.
• Income diversity.
• Action towards being a strong global brand name.

Cons:

• Continuation of problems associated with diversity.
• Distinctions in cultures might resulted in a failure of the brand name specifically in Asian nations.
• Low earnings at initial levels.
• Boost in marketing expenditures to get market share.



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