Recommendations of Lafarge From A French Cement Company To A Global Leader Case Help

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Recommendations of Lafarge From 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 assessment of various alternatives, the business is advised to consider alternative 3. As alternative 3 would allow the business to broaden in global markets without any decrease in its regional earnings and any degeneration of its market position. The company could pursue alternative 1 which would make it possible for the company to focus on prospective international markets rather than the local markets but as the company is extremely reliant on the local markets with 90% of its stores in the United States, there fore pursuing alternative 1 would result in the substantial decline in company's earnings.

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

Growth towards worldwide markets through opening new stores in other Europe and Asian nations with closing domestic shops is although a good alternative for increasing the worldwide presence of the business. The closing of domestic stores might highly affect the incomes of the company as above 90% of its shops are located domestically and closing those shops would ultimately lower the revenues of the firm. Furthermore, the business has a long term market position in United States which can not be produced soon in the new markets. The alternative would assist the company to broaden in global markets together with the elimination of issues raised in its local markets related to its variety. The pros and Cons for Alternative 1 are listed below;

Pros:

• Expedition of brand-new international markets.
• Increase in profits from international markets.
• Removal of problems associated with diversity.
• Revenue diversity.
• Step towards being a strong international brand.

Cons:

• Loss of extensive profits from the regional markets.
• Boost in competition.
• Distinctions in cultures might resulted in a failure of the brand name particularly in Asian nations.
• Low profits at initial levels.
• Increase in marketing expenses to get market share.

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

With the increased trends towards online shopping, the online stores like Amazon, Alibaba etc. could posture an extreme hazard to the market share of company. In this scenario the company might consider presenting Click and Recommendations of Lafarge From A French Cement Company To A Global Leader 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 shops.

Pros:

• Low financial investment
• Decreasing competitors hazard
• Access to the world markets
• Expanding consumer base
• Easy to manage
• Big Earnings
• Low Operating Expense
• Easy new market entrance

Cons:

• Risk to the marketplace position
• Removal of brand Individuality
• Removal of the fantastic shop experience.
• Threat of decrease in elite sales.

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

Another choice that the business could consider, is to expand towards the global markets without closing its domestic stores that contributes to the huge part of profits of the business. The benefits and drawbacks associated with Alternative 3 are given listed below;

Pros:

• Lowering competitors threat
• Access to the world markets
• Expanding customer base
• Large Revenues
• Expedition of new international markets.
• Boost in profits from global markets.
• Earnings diversification.
• Step towards being a strong international brand name.

Cons:

• Continuation of concerns associated with diversity.
• Distinctions in cultures might led to a failure of the brand particularly in Asian nations.
• Low earnings at initial levels.
• Boost in marketing expenses to get market share.



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