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 Solution

On the basis of above internal and external analysis of the business along with the examination of various alternatives, the company is suggested to think about alternative 3. As alternative 3 would allow the business to expand in international markets without any reduction in its local revenues and any wear and tear of its market position. The business might pursue alternative 1 which would make it possible for the company to focus on possible worldwide markets rather than the regional markets but as the business is highly dependent on the regional markets with 90% of its stores in the United States, there fore pursuing alternative 1 would result in the considerable decrease in business's revenue.

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

The business has a long term market position in United States which can not be generated quickly in the brand-new markets. The alternative would assist the business to broaden in worldwide markets along with the removal of problems raised in its regional markets related to its diversity.

Pros:

• Exploration of new worldwide markets.
• Increase in revenue from worldwide markets.
• Elimination of problems associated with diversity.
• Income diversity.
• Action towards being a strong global brand.

Cons:

• Loss of extensive earnings from the local markets.
• Boost in competition.
• Differences in cultures could caused a failure of the brand specifically in Asian countries.
• Low profits at initial levels.
• Boost in marketing expenditures to gain market share.

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

Alternative 2 consists of the intro of online market places through generating a proper company's website. With the increased patterns towards online shopping, the online stores like Amazon, Alibaba etc. could posture an extreme hazard to the marketplace share of company. Additionally, the rivals are shifting towards click and Recommendations of Lafarge: Evolution Of A French Cement Company To A Global Leader Case Help stores with Space introducing Piperline. This shift towards online markets might reduce the earnings for company. 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 stores. These shops with a low requirement of funds to settle would make it possible for the business to reach global markets, without ending its domestic shops. The pros and cons of option 2 are offered as follows;

Pros:

• Low investment
• Lowering competitors risk
• Access to the world markets
• Enlarging customer base
• Easy to handle
• Big Revenues
• Low Operating Costs
• Easy brand-new market entrance

Cons:

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

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

Another option that the business might think about, is to expand towards the global markets without closing its domestic shops that adds to the huge part of profits of the business. The benefits and drawbacks related to Alternative 3 are provided below;

Pros:

• Decreasing competition threat
• Access to the world markets
• Expanding consumer base
• Large Incomes
• Exploration of brand-new international markets.
• Boost in income from international markets.
• Profits diversity.
• Step towards being a strong international brand name.

Cons:

• Continuation of issues connected to diversity.
• Differences in cultures could led to a failure of the brand specifically in Asian countries.
• Low earnings at preliminary levels.
• Boost in marketing expenditures to acquire market share.



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