Recommendations of Saint-Gobain The Expansion Option In India And Or China Case Analysis

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Recommendations of Saint-Gobain The Expansion Option In India And Or China Case Study Solution

On the basis of above internal and external analysis of the business along with the assessment of various options, the business is recommended to consider alternative 3. As alternative 3 would allow the business to broaden in international markets without any decrease in its regional earnings and any deterioration of its market position. The company could pursue alternative 1 which would make it possible for the company to focus on prospective worldwide markets rather than the regional markets however as the business is highly reliant on the local markets with 90% of its stores in the United States, there fore pursuing alternative 1 would result in the substantial decrease in company's revenue.

Aletrnative-1: Expanding International Brick and Recommendations of Saint-Gobain The Expansion Option In India And Or China Case Analysis Stores

The business has a long term market position in United States which can not be created soon in the new markets. The option would help the business to expand in global markets along with the elimination of problems raised in its local markets related to its diversity.

Pros:

• Exploration of brand-new global markets.
• Increase in profits from international markets.
• Removal of issues associated with variety.
• Income diversification.
• Step towards being a strong international brand.

Cons:

• Loss of comprehensive earnings from the regional markets.
• Increase in competitors.
• Differences in cultures could led to a failure of the brand name especially in Asian nations.
• Low incomes at preliminary levels.
• Boost in marketing expenses to acquire market share.

Alternative-2: Introduction of Click and Recommendations of Saint-Gobain The Expansion Option In India And Or China Case Solution Stores

With the increased trends towards online shopping, the online shops like Amazon, Alibaba and so on could posture a severe risk to the market share of business. In this situation the business could think about presenting Click and Recommendations of Saint-Gobain The Expansion Option In India And Or China 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 shops.

Pros:

• Low investment
• Reducing competition danger
• Access to the world markets
• Expanding consumer base
• Easy to handle
• Big Incomes
• Low Operating Expense
• Easy new market entrance

Cons:

• Danger to the marketplace position
• Removal of brand name Originality
• Elimination of the terrific store 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 adds to the major part of incomes of the company. The advantages and disadvantages associated with Alternative 3 are given below;

Pros:

• Decreasing competition threat
• Access to the world markets
• Expanding consumer base
• Large Profits
• Exploration of new global markets.
• Boost in income from global markets.
• Profits diversity.
• Action towards being a strong worldwide brand.

Cons:

• Continuation of concerns connected to variety.
• Differences in cultures could led to a failure of the brand specifically in Asian nations.
• Low revenues at initial levels.
• Boost in marketing expenditures to gain market share.



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