Recommendations of Renault: The Challenge Of Restructuring Case Solution

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Recommendations of Renault: The Challenge Of Restructuring Case Study Solution

On the basis of above internal and external analysis of the business in addition to the assessment of numerous options, the company is recommended to think about alternative 3. As alternative 3 would allow the business to broaden in international markets with no reduction in its local revenues and any degeneration of its market position. By considering Alternative 3, the business might keep its store experience and brand name originality. However, it could also consider alternative 2 that could allow the company to access the marketplaces with no possible financial investment. Although, the business might pursue alternative 1 which would allow the company to concentrate on potential global markets instead of the local markets however as the company is extremely dependent on the local markets with 90% of its stores in the US, there fore pursuing option 1 would result in the substantial decrease in company's revenue. Therefore, the company is advised to consider alternative 3.

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

Growth towards international markets through opening new stores in other Europe and Asian nations with closing domestic stores is although a good alternative for increasing the worldwide presence of the company. The closing of domestic stores might highly affect the profits of the firm as above 90% of its stores are situated domestically and closing those stores would ultimately minimize the earnings of the company. The company has a long term market position in US which can not be produced soon in the brand-new markets. The option would help the company to broaden in international markets in addition to the elimination of concerns raised in its local markets connected to its variety. The pros and Cons for Alternative 1 are noted below;

Pros:

• Expedition of new international markets.
• Increase in earnings from global markets.
• Removal of issues related to diversity.
• Revenue diversification.
• Action towards being a strong international brand name.

Cons:

• Loss of extensive incomes from the local markets.
• Boost in competitors.
• Distinctions in cultures might resulted in a failure of the brand specifically in Asian nations.
• Low incomes at initial levels.
• Increase in marketing expenses to get market share.

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

With the increased trends towards online shopping, the online stores like Amazon, Alibaba and so on could pose a serious hazard to the market share of company. In this situation the business might think about introducing Click and Recommendations of Renault: The Challenge Of Restructuring Case Help stores. These shops with a low requirement of funds to settle would allow the company to reach worldwide markets, without ending its domestic stores.

Pros:

• Low investment
• Reducing competition hazard
• Access to the world markets
• Increasing the size of consumer base
• Easy to handle
• Large Profits
• Low Operating Costs
• Easy brand-new market entryway

Cons:

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

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

Another option that the company might think about, is to broaden towards the international markets without closing its domestic stores that adds to the huge part of earnings of the company. The advantages and disadvantages connected to Alternative 3 are provided listed below;

Pros:

• Reducing competitors threat
• Access to the world markets
• Expanding customer base
• Big Incomes
• Expedition of new international markets.
• Boost in earnings from global markets.
• Income diversification.
• Action towards being a strong global brand name.

Cons:

• Continuation of problems related to variety.
• Distinctions in cultures might caused a failure of the brand particularly in Asian countries.
• Low revenues at initial levels.
• Boost in marketing expenditures to get market share.



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