Recommendations of Loreal And The Body Shop Acquisition Synergies Case Solution

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Recommendations of Loreal And The Body Shop Acquisition Synergies Case Study Analysis

On the basis of above internal and external analysis of the company together with the assessment of different options, the company is suggested to consider alternative 3. As alternative 3 would allow the company to broaden in global markets with no decrease in its regional earnings and any deterioration of its market position. By considering Alternative 3, the company could preserve its store experience and brand name individuality. Nevertheless, it could also think about alternative 2 that could enable the company to access the marketplaces with no possible financial investment. The company could pursue alternative 1 which would enable the business to focus on prospective international markets rather than the local markets however as the business is highly dependent on the local markets with 90% of its stores in the US, there fore pursuing alternative 1 would result in the significant decline in business's profits. The company is recommended to think about alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of Loreal And The Body Shop Acquisition Synergies Case Solution Stores

Expansion towards international markets through opening new stores in other Europe and Asian nations with closing domestic shops is although an excellent choice for increasing the worldwide presence of the business. However, the closing of domestic stores might extremely impact the earnings of the company as above 90% of its stores are located locally and closing those shops would ultimately lower the profits of the company. Furthermore, the business has a long term market position in United States which can not be created soon in the new markets. The choice would help the business to broaden in global markets along with the elimination of issues raised in its local markets related to its diversity. The pros and Cons for Alternative 1 are listed below;

Pros:

• Exploration of new worldwide markets.
• Increase in profits from international markets.
• Elimination of concerns related to diversity.
• Income diversification.
• Action towards being a strong worldwide brand name.

Cons:

• Loss of extensive incomes from the local markets.
• Increase in competitors.
• Differences in cultures could led to a failure of the brand particularly in Asian nations.
• Low earnings at preliminary levels.
• Increase in marketing expenses to acquire market share.

Alternative-2: Introduction of Click and Recommendations of Loreal And The Body Shop Acquisition Synergies Case Analysis Stores

With the increased trends towards online shopping, the online shops like Amazon, Alibaba and so on might posture an extreme hazard to the market share of business. In this situation the company could think about presenting Click and Recommendations of Loreal And The Body Shop Acquisition Synergies Case Solution shops. These stores with a low requirement of funds to settle would make it possible for the company to reach worldwide markets, without ending its domestic shops.

Pros:

• Low financial investment
• Decreasing competition threat
• Access to the world markets
• Enlarging consumer base
• Easy to handle
• Large Earnings
• Low Operating Expense
• Easy brand-new market entryway

Cons:

• Danger to the market position
• Removal of brand Uniqueness
• Elimination of the terrific store experience.
• Risk 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 stores that adds to the huge part of revenues of the company. The pros and cons associated with Alternative 3 are given below;

Pros:

• Lowering competitors risk
• Access to the world markets
• Expanding consumer base
• Big Profits
• Exploration of brand-new international markets.
• Increase in earnings from worldwide markets.
• Earnings diversification.
• Action towards being a strong global brand name.

Cons:

• Extension of problems related to variety.
• Distinctions in cultures could led to a failure of the brand particularly in Asian countries.
• Low incomes at initial levels.
• Increase in marketing expenses to acquire market share.



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