Recommendations of Mittal-Arcelor: The Bid Case Analysis

Home >> Essec Business School >> Mittal-Arcelor: The Bid >> Recommendations

Recommendations of Mittal-Arcelor: The Bid Case Study Analysis

On the basis of above internal and external analysis of the business along with the assessment of various options, the company is recommended to think about alternative 3. As alternative 3 would allow the business to broaden in global markets without any decrease in its regional revenues and any wear and tear of its market position. The business could pursue alternative 1 which would enable the company to focus on possible worldwide markets rather than the regional markets however as the business is highly reliant on the local markets with 90% of its shops in the United States, there fore pursuing option 1 would result in the significant decline in company's revenue.

Aletrnative-1: Expanding International Brick and Recommendations of Mittal-Arcelor: The Bid Case Solution Stores

Expansion towards worldwide markets through opening brand-new stores in other Europe and Asian countries with closing domestic stores is although a great option for increasing the global presence of the business. Nevertheless, the closing of domestic stores could extremely impact the incomes of the firm as above 90% of its shops are located domestically and closing those stores would eventually decrease the earnings of the company. Additionally, the company has a long term market position in US which can not be created soon in the new markets. The choice would help the business to expand in international markets along with the elimination of issues raised in its local markets connected to its variety. The pros and Cons for Option 1 are noted below;

Pros:

• Expedition of new international markets.
• Increase in profits from worldwide markets.
• Removal of concerns related to diversity.
• Earnings diversification.
• Step towards being a strong global brand.

Cons:

• Loss of extensive profits from the local markets.
• Increase in competitors.
• Differences in cultures might caused a failure of the brand name especially in Asian nations.
• Low profits at preliminary levels.
• Boost in marketing expenses to acquire market share.

Alternative-2: Introduction of Click and Recommendations of Mittal-Arcelor: The Bid Case Analysis Stores

With the increased trends towards online shopping, the online shops like Amazon, Alibaba and so on could position an extreme risk to the market share of company. In this circumstance the company could think about presenting Click and Recommendations of Mittal-Arcelor: The Bid Case Analysis stores. These stores with a low requirement of funds to settle would make it possible for the company to reach global markets, without ending its domestic shops.

Pros:

• Low financial investment
• Reducing 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 entryway

Cons:

• Danger to the market position
• Elimination of brand name Individuality
• Removal of the excellent store experience.
• Threat of decrease in elite sales.

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

Another choice that the business might think about, is to broaden towards the worldwide markets without closing its domestic stores that adds to the major part of revenues of the business. The benefits and drawbacks related to Alternative 3 are given listed below;

Pros:

• Minimizing competition threat
• Access to the world markets
• Increasing the size of consumer base
• Large Earnings
• Expedition of new global markets.
• Boost in revenue from worldwide markets.
• Earnings diversification.
• Step towards being a strong worldwide brand.

Cons:

• Extension of issues connected to variety.
• Distinctions in cultures might led to a failure of the brand name particularly in Asian countries.
• Low profits at preliminary levels.
• Boost in marketing expenses to get market share.



This is sample work and not applicable to real case study. Please place the order on the website to get your own originally done case solution.