Recommendations of Mittal Steel Managing Consolidation Case Analysis

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Recommendations of Mittal Steel Managing Consolidation Case Study Analysis

On the basis of above internal and external analysis of the company together with the evaluation of various options, the company is recommended to consider alternative 3. As alternative 3 would enable the business to expand in worldwide markets with no decrease in its local incomes and any wear and tear of its market position. By considering Alternative 3, the business might maintain its shop experience and brand individuality. Nevertheless, it might likewise think about alternative 2 that might enable the company to access the markets without any possible investment. The business might pursue alternative 1 which would enable the company to focus on prospective global markets rather than the regional markets but as the company is extremely reliant on the regional markets with 90% of its stores in the United States, there fore pursuing alternative 1 would result in the considerable decline in business's earnings. For that reason, the company is suggested to consider alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of Mittal Steel Managing Consolidation Case Analysis Stores

Growth towards international markets through opening brand-new stores in other Europe and Asian nations with closing domestic shops is although an excellent option for increasing the worldwide existence of the business. The closing of domestic shops might extremely impact the revenues of the company as above 90% of its stores are situated locally and closing those shops would ultimately minimize the earnings of the firm. The company has a long term market position in US which can not be produced soon in the new markets. The alternative would help the business to expand in global markets along with the removal of problems raised in its local markets associated with its variety. The advantages and disadvantages for Alternative 1 are noted below;

Pros:

• Expedition of new global markets.
• Boost in earnings from international markets.
• Removal of issues associated with diversity.
• Income diversification.
• Step towards being a strong international brand.

Cons:

• Loss of extensive profits from the local markets.
• Boost in competition.
• Differences in cultures might led to a failure of the brand specifically in Asian countries.
• Low revenues at preliminary levels.
• Boost in marketing expenses to gain market share.

Alternative-2: Introduction of Click and Recommendations of Mittal Steel Managing Consolidation Case Solution Stores

Alternative 2 includes the introduction of online market locations through generating a correct company's website. With the increased patterns towards online shopping, the online shops like Amazon, Alibaba etc. might present a severe threat to the marketplace share of company. The rivals are moving towards click and Recommendations of Mittal Steel Managing Consolidation Case Analysis shops with Space introducing Piperline. This shift towards online markets might decrease the earnings for business. In this circumstance the business could think about presenting Click and Recommendations of Mittal Steel Managing Consolidation Case Help stores. These stores with a low requirement of funds to settle would allow the business to reach worldwide markets, without ending its domestic shops. The benefits and drawbacks of option 2 are given as follows;

Pros:

• Low investment
• Reducing competition threat
• Access to the world markets
• Increasing the size of consumer base
• Easy to manage
• Big Incomes
• Low Operating Costs
• Easy brand-new market entrance

Cons:

• Danger to the marketplace position
• Elimination of brand name Originality
• Elimination of the terrific shop experience.
• Danger of decrease in elite sales.

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

Another alternative that the company might think about, is to expand towards the international markets without closing its domestic stores that contributes to the major part of earnings of the business. The advantages and disadvantages connected to Alternative 3 are given below;

Pros:

• Lowering competition danger
• Access to the world markets
• Expanding customer base
• Large Profits
• Expedition of new global markets.
• Increase in earnings from global markets.
• Profits diversification.
• Action towards being a strong global brand name.

Cons:

• Extension of issues related to diversity.
• Differences in cultures might resulted in a failure of the brand name especially in Asian nations.
• Low profits at preliminary levels.
• Boost in marketing expenses to gain market share.



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