Recommendations of Lafarge Evolution Of A French Cement Company To A Global Leader Case Analysis

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Recommendations of Lafarge Evolution Of A French Cement Company To A Global Leader Case Study Help

On the basis of above internal and external analysis of the business along with the examination of numerous options, the business is advised to consider alternative 3. As alternative 3 would permit the company to expand in international markets without any reduction in its regional incomes and any deterioration of its market position. The business could pursue alternative 1 which would enable the company to focus on potential worldwide markets rather than the local markets but as the business is highly dependent on the local markets with 90% of its shops in the US, there fore pursuing alternative 1 would result in the substantial decline in company's earnings.

Aletrnative-1: Expanding International Brick and Recommendations of Lafarge Evolution Of A French Cement Company To A Global Leader Case Analysis Stores

Expansion towards global markets through opening new stores in other Europe and Asian countries with closing domestic shops is although a great option for increasing the global existence of the business. The closing of domestic stores might extremely impact the incomes of the company as above 90% of its stores are located domestically and closing those stores would ultimately reduce the incomes of the company. Additionally, the business has a long term market position in United States which can not be created quickly in the new markets. The option would help the business to expand in international markets together with the elimination of problems raised in its regional markets related to its diversity. The advantages and disadvantages for Option 1 are listed below;

Pros:

• Expedition of brand-new global markets.
• Boost in profits from worldwide markets.
• Removal of concerns related to diversity.
• Profits diversity.
• Action towards being a strong worldwide brand.

Cons:

• Loss of extensive profits from the regional markets.
• Increase in competition.
• Distinctions in cultures might led to a failure of the brand name especially in Asian countries.
• Low incomes at initial levels.
• Boost in marketing expenses to acquire market share.

Alternative-2: Introduction of Click and Recommendations of Lafarge Evolution Of A French Cement Company To A Global Leader Case Help Stores

Alternative 2 includes the introduction of online market locations through creating an appropriate business's website. With the increased trends towards online shopping, the online shops like Amazon, Alibaba etc. could position an extreme risk to the marketplace share of business. The rivals are shifting towards click and Recommendations of Lafarge Evolution Of A French Cement Company To A Global Leader Case Solution stores with Space presenting Piperline. This shift towards online markets could minimize the earnings for business. In this circumstance the company could consider introducing Click and Recommendations of Lafarge Evolution Of A French Cement Company To A Global Leader Case Solution shops. These stores with a low requirement of funds to settle would make it possible for the company to reach international markets, without ending its domestic shops. The pros and cons of alternative 2 are given as follows;

Pros:

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

Cons:

• Danger to the market position
• Elimination of brand name Individuality
• Elimination of the excellent store experience.
• Danger of decrease in elite sales.

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

Another option that the company could think about, is to broaden towards the global markets without closing its domestic stores that contributes to the huge part of revenues of the company. The pros and cons related to Alternative 3 are given listed below;

Pros:

• Reducing competition threat
• Access to the world markets
• Increasing the size of customer base
• Large Incomes
• Exploration of brand-new international markets.
• Boost in earnings from global markets.
• Earnings diversity.
• Step towards being a strong global brand name.

Cons:

• Continuation of problems associated with diversity.
• Distinctions in cultures might led to a failure of the brand name especially in Asian nations.
• Low revenues at initial levels.
• Boost in marketing expenditures to gain market share.



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