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

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

On the basis of above internal and external analysis of the business together with the evaluation of different options, the company is suggested to think about alternative 3. As alternative 3 would allow the business to broaden in international markets with no decrease in its local profits and any degeneration of its market position. By thinking about Alternative 3, the business might maintain its shop experience and brand name individuality. However, it might also consider alternative 2 that might permit the business to access the markets with no possible financial investment. The company could pursue alternative 1 which would make it possible for the business to focus on prospective international markets rather than the regional markets but as the company is extremely reliant on the regional markets with 90% of its shops in the United States, there fore pursuing option 1 would result in the substantial decline in business's earnings. The business is recommended to consider alternative 3.

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

Expansion towards global markets through opening brand-new stores in other Europe and Asian nations with closing domestic shops is although an excellent option for increasing the global existence of the company. However, the closing of domestic stores could extremely affect the incomes of the firm as above 90% of its shops are located locally and closing those shops would ultimately minimize the earnings of the company. The company has a long term market position in United States which can not be created soon in the new markets. The choice would assist the business to broaden in worldwide markets in addition to the elimination of problems raised in its regional markets connected to its diversity. The pros and Cons for Alternative 1 are listed below;

Pros:

• Exploration of new international markets.
• Increase in profits from international markets.
• Removal of concerns associated with variety.
• Revenue diversification.
• Step towards being a strong international brand.

Cons:

• Loss of extensive earnings from the regional markets.
• Boost in competitors.
• Differences in cultures might resulted in a failure of the brand especially in Asian countries.
• Low incomes at preliminary levels.
• Increase in marketing expenditures to get market share.

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

Alternative 2 consists of the intro of online market places through producing a correct company's site. With the increased patterns towards online shopping, the online shops like Amazon, Alibaba and so on might present a serious hazard to the marketplace share of company. The competitors are shifting towards click and Recommendations of Lafarge (B): Looking To The Future Case Analysis stores with Space presenting Piperline. This shift towards online markets might decrease the incomes for company. In this circumstance the business could consider introducing Click and Recommendations of Lafarge (B): Looking To The Future Case Solution shops. These stores with a low requirement of funds to settle would make it possible for the business to reach international markets, without ending its domestic stores. The benefits and drawbacks of alternative 2 are offered as follows;

Pros:

• Low investment
• Lowering competitors risk
• Access to the world markets
• Expanding consumer base
• Easy to manage
• Large Revenues
• Low Operating Expense
• Easy brand-new market entryway

Cons:

• Threat to the market position
• Elimination of brand name Originality
• Elimination of the fantastic shop experience.
• Danger of decrease in elite sales.

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

Another choice that the company could think about, is to broaden towards the international markets without closing its domestic shops that adds to the huge part of earnings of the company. The advantages and disadvantages related to Alternative 3 are given below;

Pros:

• Lowering competitors hazard
• Access to the world markets
• Expanding consumer base
• Big Revenues
• Expedition of new international markets.
• Boost in profits from international markets.
• Profits diversification.
• Step towards being a strong global brand.

Cons:

• Extension of problems related to diversity.
• Differences in cultures might led to a failure of the brand particularly in Asian countries.
• Low profits at preliminary levels.
• Increase in marketing expenses to get market share.



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