Recommendations of Lafarge (B) Looking To The Future Case Help

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Recommendations of Lafarge (B) Looking To The Future Case Study Solution

On the basis of above internal and external analysis of the business along with the evaluation of numerous alternatives, the company is advised to consider alternative 3. As alternative 3 would allow the company to broaden in international markets without any decrease in its regional profits and any degeneration of its market position. The business could pursue alternative 1 which would enable the company to focus on prospective international markets rather than the regional markets but as the business is highly reliant on the regional markets with 90% of its stores in the United States, there fore pursuing alternative 1 would result in the considerable decline in company's income.

Aletrnative-1: Expanding International Brick and Recommendations of Lafarge (B) Looking To The Future Case Analysis Stores

Expansion towards international markets through opening new shops in other Europe and Asian nations with closing domestic shops is although a great choice for increasing the global existence of the business. Nevertheless, the closing of domestic shops could extremely impact the profits of the firm as above 90% of its shops lie locally and closing those stores would eventually reduce the incomes of the firm. Additionally, the business has a long term market position in United States which can not be produced soon in the brand-new markets. The option would assist the company to expand in global markets together with the elimination of issues raised in its regional markets associated with its variety. The pros and Cons for Option 1 are listed below;

Pros:

• Expedition of brand-new global markets.
• Boost in revenue from global markets.
• Elimination of concerns associated with variety.
• Revenue diversification.
• Step towards being a strong international brand.

Cons:

• Loss of substantial earnings from the regional markets.
• Boost in competitors.
• Differences in cultures could resulted in a failure of the brand name specifically in Asian nations.
• Low incomes at initial levels.
• Boost in marketing expenditures to acquire market share.

Alternative-2: Introduction of Click and Recommendations of Lafarge (B) Looking To The Future Case Analysis Stores

Alternative 2 includes the introduction of online market locations through producing an appropriate company's site. With the increased patterns towards online shopping, the online shops like Amazon, Alibaba and so on could position a serious hazard to the market share of company. The rivals are shifting towards click and Recommendations of Lafarge (B) Looking To The Future Case Solution shops with Space presenting Piperline. This shift towards online markets could lower the revenues for business. In this situation the business might think about presenting Click and Recommendations of Lafarge (B) Looking To The Future Case Help shops. These shops with a low requirement of funds to settle would make it possible for the business to reach worldwide markets, without ending its domestic stores. The benefits and drawbacks of alternative 2 are given as follows;

Pros:

• Low financial investment
• Reducing competitors threat
• Access to the world markets
• Enlarging consumer base
• Easy to handle
• Large Earnings
• Low Operating Costs
• Easy brand-new market entryway

Cons:

• Threat to the marketplace position
• Removal of brand name Uniqueness
• Elimination of the excellent shop experience.
• Danger of decrease in elite sales.

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

Another option that the business might consider, is to expand towards the global markets without closing its domestic stores that contributes to the major part of earnings of the business. The pros and cons connected to Alternative 3 are given below;

Pros:

• Decreasing competition risk
• Access to the world markets
• Expanding customer base
• Large Profits
• Exploration of brand-new international markets.
• Boost in revenue from worldwide markets.
• Earnings diversity.
• Step towards being a strong worldwide brand.

Cons:

• Extension of problems related to variety.
• Distinctions in cultures might caused a failure of the brand especially in Asian nations.
• Low earnings at preliminary levels.
• Increase in marketing expenses to acquire market share.



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