Recommendations of Lvmh Managing The Multi-Brand Conglomerate Case Help

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Recommendations of Lvmh Managing The Multi-Brand Conglomerate Case Study Solution

On the basis of above internal and external analysis of the company along with the assessment of various alternatives, the business is advised to think about alternative 3. As alternative 3 would allow the business to broaden in international markets with no reduction in its regional profits and any deterioration of its market position. By thinking about Alternative 3, the business might keep its store experience and brand name uniqueness. It could also think about alternative 2 that might allow the business to access the markets without any potential financial investment. Although, the company could pursue alternative 1 which would make it possible for the business to concentrate on potential global markets instead of the local markets but as the company is extremely depending on the regional markets with 90% of its shops in the US, there fore pursuing option 1 would result in the considerable decrease in business's profits. The company is suggested to consider alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of Lvmh Managing The Multi-Brand Conglomerate Case Solution Stores

Growth towards international markets through opening brand-new shops in other Europe and Asian nations with closing domestic shops is although a great alternative for increasing the worldwide existence of the business. Nevertheless, the closing of domestic shops could highly affect the revenues of the company as above 90% of its stores are located domestically and closing those stores would eventually reduce the earnings of the company. The company has a long term market position in United States which can not be created soon in the new markets. The alternative would assist the company to broaden in international markets along with the removal of problems raised in its local markets connected to its diversity. The advantages and disadvantages for Option 1 are listed below;

Pros:

• Exploration of new global markets.
• Boost in earnings from international markets.
• Elimination of issues associated with variety.
• Earnings diversity.
• Step towards being a strong global brand name.

Cons:

• Loss of comprehensive incomes from the local markets.
• Increase in competitors.
• Distinctions in cultures might caused a failure of the brand specifically in Asian nations.
• Low earnings at initial levels.
• Increase in marketing expenditures to gain market share.

Alternative-2: Introduction of Click and Recommendations of Lvmh Managing The Multi-Brand Conglomerate Case Solution Stores

With the increased patterns towards online shopping, the online shops like Amazon, Alibaba and so on could pose a severe hazard to the market share of company. In this circumstance the company could consider introducing Click and Recommendations of Lvmh Managing The Multi-Brand Conglomerate Case Solution stores. These shops with a low requirement of funds to settle would allow the business to reach global markets, without ending its domestic shops.

Pros:

• Low investment
• Reducing competitors risk
• Access to the world markets
• Enlarging consumer base
• Easy to handle
• Large Incomes
• Low Operating Costs
• Easy new market entryway

Cons:

• Threat to the marketplace position
• Elimination of brand Originality
• Removal of the great shop 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 worldwide markets without closing its domestic stores that contributes to the huge part of revenues of the business. The pros and cons connected to Alternative 3 are offered listed below;

Pros:

• Reducing competitors danger
• Access to the world markets
• Enlarging customer base
• Large Profits
• Expedition of new global markets.
• Increase in revenue from global markets.
• Earnings diversification.
• Action towards being a strong global brand.

Cons:

• Continuation of issues connected to diversity.
• Distinctions in cultures could resulted in a failure of the brand name especially in Asian countries.
• Low earnings at initial levels.
• Increase in marketing expenditures to acquire market share.



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