Recommendations of Renault The Challenge Of Restructuring Case Solution

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Recommendations of Renault The Challenge Of Restructuring Case Study Help

On the basis of above internal and external analysis of the business together with the assessment of numerous alternatives, the company is advised to think about alternative 3. As alternative 3 would enable the company to expand in global markets with no reduction in its local incomes and any degeneration of its market position. By considering Alternative 3, the business could keep its store experience and brand uniqueness. It could also think about alternative 2 that could enable the company to access the markets without any possible financial investment. The business could pursue alternative 1 which would allow the company to focus on potential global markets rather than the local markets but as the company is extremely reliant on the regional markets with 90% of its shops in the United States, there fore pursuing alternative 1 would result in the substantial decline in company's profits. Therefore, the business is recommended to consider alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of Renault The Challenge Of Restructuring Case Help Stores

Growth towards global markets through opening brand-new shops in other Europe and Asian nations with closing domestic stores is although an excellent alternative for increasing the international presence of the company. The closing of domestic shops could highly affect the profits of the firm as above 90% of its stores are situated domestically and closing those shops would ultimately decrease the profits of the firm. The business has a long term market position in United States which can not be created quickly in the brand-new markets. The alternative would help the business to expand in global markets together with the removal of concerns raised in its regional markets connected to its variety. The pros and Cons for Option 1 are listed below;

Pros:

• Exploration of new international markets.
• Increase in income from international markets.
• Removal of issues associated with variety.
• Income diversity.
• Action towards being a strong worldwide brand.

Cons:

• Loss of comprehensive profits from the regional markets.
• Increase in competitors.
• Distinctions in cultures could caused a failure of the brand name specifically in Asian countries.
• Low incomes at preliminary levels.
• Boost in marketing expenses to gain market share.

Alternative-2: Introduction of Click and Recommendations of Renault The Challenge Of Restructuring Case Solution Stores

Alternative 2 includes the introduction of online market places through creating a correct company's site. With the increased patterns towards online shopping, the online stores like Amazon, Alibaba etc. might position an extreme risk to the marketplace share of business. The rivals are shifting towards click and Recommendations of Renault The Challenge Of Restructuring Case Help shops with Space presenting Piperline. This shift towards online markets could minimize the revenues for company. In this situation the business could think about presenting Click and Recommendations of Renault The Challenge Of Restructuring Case Solution stores. These shops with a low requirement of funds to settle would enable the company to reach international markets, without ending its domestic shops. The advantages and disadvantages of option 2 are given as follows;

Pros:

• Low investment
• Lowering competitors danger
• Access to the world markets
• Expanding consumer base
• Easy to manage
• Large Earnings
• Low Operating Costs
• Easy new market entryway

Cons:

• Risk to the marketplace position
• Elimination of brand name Uniqueness
• Removal of the fantastic store experience.
• Danger of decline in elite sales.

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

Another alternative that the business might think about, is to broaden towards the global markets without closing its domestic shops that contributes to the major part of earnings of the business. The pros and cons connected to Alternative 3 are given below;

Pros:

• Reducing competition hazard
• Access to the world markets
• Enlarging customer base
• Large Earnings
• Exploration of new worldwide markets.
• Increase in income from worldwide markets.
• Profits diversification.
• Step towards being a strong worldwide brand.

Cons:

• Extension of concerns connected to diversity.
• Distinctions in cultures could led to a failure of the brand particularly in Asian countries.
• Low profits at preliminary levels.
• Boost in marketing expenses to acquire market share.



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