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

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

On the basis of above internal and external analysis of the company along with the assessment of various options, the business is recommended to consider alternative 3. As alternative 3 would enable the company to broaden in global markets without any decrease in its regional earnings and any deterioration of its market position. The company could pursue alternative 1 which would allow the company to focus on potential international markets rather than the regional markets however as the business is highly dependent on the local markets with 90% of its stores in the US, there fore pursuing alternative 1 would result in the significant decline in company's profits.

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 produced soon in the new markets. The option would assist the company to broaden in worldwide markets along with the removal of concerns raised in its regional markets related to its diversity.

Pros:

• Exploration of new global markets.
• Boost in earnings from international markets.
• Removal of issues connected to variety.
• Income diversification.
• Action towards being a strong global brand.

Cons:

• Loss of extensive incomes from the regional markets.
• Increase in competitors.
• Differences in cultures could led to a failure of the brand name particularly in Asian countries.
• Low revenues at preliminary levels.
• Increase in marketing expenses to get 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 position an extreme risk to the market share of company. In this circumstance the company could consider introducing Click and Recommendations of Saint-Gobain The Expansion Option In India And Or China Case Solution shops. These stores with a low requirement of funds to settle would allow the company to reach global markets, without ending its domestic shops.

Pros:

• Low investment
• Reducing competitors threat
• Access to the world markets
• Expanding consumer base
• Easy to handle
• Large Earnings
• Low Operating Costs
• Easy new market entryway

Cons:

• Threat to the market position
• Elimination of brand Individuality
• Removal of the excellent store experience.
• Threat of decrease in elite sales.

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

Another option that the business might consider, is to broaden towards the worldwide markets without closing its domestic shops that adds to the major part of earnings of the business. The advantages and disadvantages associated with Alternative 3 are given listed below;

Pros:

• Minimizing competition risk
• Access to the world markets
• Expanding consumer base
• Large Profits
• Exploration of brand-new worldwide markets.
• Increase in revenue from worldwide markets.
• Income diversification.
• Action towards being a strong global brand name.

Cons:

• Continuation of issues related to variety.
• Differences in cultures might resulted in a failure of the brand especially in Asian countries.
• Low profits at preliminary levels.
• Increase in marketing expenditures to acquire market share.



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