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 Analysis

On the basis of above internal and external analysis of the business along with the examination of various options, the company is suggested to think about alternative 3. As alternative 3 would allow the business to expand in global markets with no decrease in its regional earnings and any deterioration of its market position. By considering Alternative 3, the company could keep its shop experience and brand name originality. However, it could likewise consider alternative 2 that could permit the business to access the markets without any possible financial investment. The business might pursue alternative 1 which would allow the business to focus on prospective international markets rather than the regional markets but as the business is highly dependent on the regional markets with 90% of its shops in the US, there fore pursuing alternative 1 would result in the considerable decrease in company's earnings. The company is suggested to consider alternative 3.

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

The business has a long term market position in United States which can not be generated soon in the new markets. The option would help the company to expand in international markets along with the elimination of problems raised in its local markets related to its variety.

Pros:

• Expedition of brand-new international markets.
• Increase in earnings from worldwide markets.
• Elimination of issues related to variety.
• Earnings diversity.
• Action towards being a strong worldwide brand name.

Cons:

• Loss of substantial incomes from the local markets.
• Increase in competitors.
• Distinctions in cultures might caused a failure of the brand specifically in Asian countries.
• Low earnings at preliminary levels.
• Boost in marketing expenses to acquire market share.

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

Alternative 2 includes the introduction of online market places through producing an appropriate company's site. With the increased trends towards online shopping, the online shops like Amazon, Alibaba etc. could pose a serious threat to the market share of business. The rivals are moving towards click and Recommendations of Lafarge: From A French Cement Company To A Global Leader Case Analysis shops with Space introducing Piperline. This shift towards online markets might reduce the earnings for business. In this situation the business might consider introducing Click and Recommendations of Lafarge: From A French Cement Company To A Global Leader Case Analysis shops. 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 competition hazard
• Access to the world markets
• Increasing the size of customer base
• Easy to manage
• Big Profits
• Low Operating Costs
• Easy new market entryway

Cons:

• Hazard to the market position
• Elimination of brand Uniqueness
• Elimination of the great store experience.
• Danger of decline in elite sales.

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

Another option that the company could think about, is to expand towards the global markets without closing its domestic shops that contributes to the major part of revenues of the business. The pros and cons related to Alternative 3 are offered below;

Pros:

• Reducing competition hazard
• Access to the world markets
• Expanding customer base
• Large Profits
• Exploration of new global markets.
• Increase in earnings from global markets.
• Revenue diversity.
• Action towards being a strong global brand name.

Cons:

• Extension of issues related to variety.
• Distinctions in cultures might resulted in a failure of the brand particularly in Asian nations.
• Low earnings at preliminary levels.
• Boost in marketing expenditures to acquire market share.



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