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 Help

RecommendationsOn the basis of above internal and external analysis of the company along with the examination of numerous options, the company is advised to consider alternative 3. As alternative 3 would allow the business to broaden in global markets without any decrease in its local profits and any wear and tear of its market position. The company might pursue alternative 1 which would make it possible for the business to focus on possible international markets rather than the regional markets but as the company is extremely reliant on the local markets with 90% of its shops in the United States, there fore pursuing option 1 would result in the considerable decrease in business's revenue.

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

International SegmentsThe company has a long term market position in United States which can not be created quickly in the brand-new markets. The choice would help the company to broaden in international markets along with the removal of concerns raised in its local markets related to its variety.

Pros:

• Expedition of new international markets.
• Boost in earnings from international markets.
• Elimination of issues related to variety.
• Income diversification.
• Step towards being a strong global brand.

Cons:

• Loss of substantial profits from the regional markets.
• Boost in competitors.
• Distinctions in cultures might led to a failure of the brand name particularly in Asian nations.
• Low profits at preliminary levels.
• Boost in marketing expenses to acquire market share.

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

Alternative 2 consists of the introduction of online market locations through creating a proper business's site. With the increased trends towards online shopping, the online stores like Amazon, Alibaba and so on might pose a serious hazard to the market share of business. The competitors are shifting towards click and Recommendations of Loreal And The Body Shop: Acquisition Synergies Case Help stores with Gap presenting Piperline. This shift towards online markets might decrease the earnings for business. In this circumstance the business might think about presenting Click and Recommendations of Loreal And The Body Shop: Acquisition Synergies Case Help shops. These stores with a low requirement of funds to settle would enable the company to reach international markets, without ending its domestic shops. The pros and cons of option 2 are offered as follows;

Pros:

• Low financial investment
• Minimizing competitors danger
• Access to the world markets
• Increasing the size of consumer base
• Easy to manage
• Large Revenues
• Low Operating Expense
• Easy brand-new market entrance

Cons:

• Risk to the marketplace position
• Elimination of brand Originality
• Elimination of the great store experience.
• Risk 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 broaden towards the global markets without closing its domestic shops that adds to the major part of profits of the business. The benefits and drawbacks related to Alternative 3 are given below;

Pros:

• Minimizing competition hazard
• Access to the world markets
• Increasing the size of consumer base
• Big Profits
• Exploration of new international markets.
• Boost in income from international markets.
• Earnings diversification.
• Step towards being a strong international brand.

Cons:

• Extension of issues associated with variety.
• Distinctions in cultures could led to a failure of the brand specifically in Asian nations.
• Low earnings at preliminary levels.
• Boost in marketing expenditures to gain market share.



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