Recommendations of Mittal Steel: Managing Consolidation Case Analysis
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Recommendations of Mittal Steel: Managing Consolidation Case Study Help
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 permit the business to expand in worldwide markets without any reduction in its regional incomes and any deterioration of its market position. By thinking about Alternative 3, the company could maintain its store experience and brand individuality. Nevertheless, it could also consider alternative 2 that might permit the company to access the markets without any potential investment. Although, the business might pursue alternative 1 which would allow the company to focus on possible worldwide markets rather than the regional markets but as the business is extremely depending on the regional markets with 90% of its stores in the US, there fore pursuing alternative 1 would result in the significant decline in company's profits. The business is suggested to consider alternative 3.
Aletrnative-1: Expanding International Brick and Recommendations of Mittal Steel: Managing Consolidation Case Analysis Stores
The business has a long term market position in United States which can not be created soon in the brand-new markets. The alternative would assist the business to broaden in worldwide markets along with the removal of problems raised in its local markets related to its diversity.
Pros:
• Expedition of new international markets.
• Increase in income from international markets.
• Elimination of problems connected to variety.
• Earnings diversification.
• Action towards being a strong international brand.
Cons:
• Loss of extensive revenues from the regional markets.
• Boost in competitors.
• Differences in cultures might resulted in a failure of the brand name particularly in Asian nations.
• Low earnings at initial levels.
• Increase in marketing expenses to get market share.
Alternative-2: Introduction of Click and Recommendations of Mittal Steel: Managing Consolidation Case Help Stores
With the increased trends towards online shopping, the online shops like Amazon, Alibaba and so on could position a severe risk to the market share of company. In this situation the company could consider presenting Click and Recommendations of Mittal Steel: Managing Consolidation Case Help shops. These shops 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 investment
• Decreasing competitors risk
• Access to the world markets
• Enlarging customer base
• Easy to manage
• Large Revenues
• Low Operating Expense
• Easy new market entrance
Cons:
• Risk to the marketplace position
• Elimination of brand name Uniqueness
• Elimination of the great shop experience.
• Threat of decrease in elite sales.
Alternative-3: Expansion towards International Markets Without closing Domestic Stores
Another option that the business could consider, is to expand towards the international markets without closing its domestic shops that contributes to the major part of earnings of the business. The advantages and disadvantages associated with Alternative 3 are given below;
Pros:
• Minimizing competitors danger
• Access to the world markets
• Enlarging consumer base
• Big Incomes
• Expedition of brand-new international markets.
• Boost in income from global markets.
• Profits diversification.
• Action towards being a strong worldwide brand name.
Cons:
• Continuation of concerns connected to variety.
• Distinctions in cultures might caused a failure of the brand name especially in Asian countries.
• Low earnings at preliminary levels.
• Boost in marketing expenditures to get market share.
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