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

Home >> Essec Business School >> Saint-Gobain: The Expansion Option In India And Or China >> Recommendations

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 business along with the examination of different options, the business is suggested to think about alternative 3. As alternative 3 would enable the business to expand in international markets without any reduction 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 potential worldwide markets rather than the regional markets but as the business is extremely reliant on the regional markets with 90% of its shops in the United States, there fore pursuing option 1 would result in the considerable 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

Expansion towards worldwide markets through opening brand-new stores in other Europe and Asian nations with closing domestic stores is although a great choice for increasing the international existence of the business. The closing of domestic shops could extremely impact the earnings of the firm as above 90% of its stores are located domestically and closing those stores would ultimately minimize the earnings of the company. The business has a long term market position in United States which can not be generated soon in the new markets. The option would assist the company to broaden in international markets together with the removal of problems raised in its regional markets related to its diversity. The advantages and disadvantages for Alternative 1 are noted below;

Pros:

• Expedition of new global markets.
• Boost in earnings from international markets.
• Removal of concerns connected to variety.
• Income diversity.
• Action towards being a strong global brand.

Cons:

• Loss of substantial profits from the local markets.
• Increase in competitors.
• Differences in cultures might resulted in a failure of the brand particularly in Asian nations.
• Low profits at initial 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 Help Stores

Alternative 2 includes the intro 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 threat to the market share of business. The rivals are moving towards click and Recommendations of Saint-Gobain: The Expansion Option In India And Or China Case Analysis stores with Gap introducing Piperline. This shift towards online markets could lower the revenues for business. In this scenario the company could consider presenting Click and Recommendations of Saint-Gobain: The Expansion Option In India And Or China Case Analysis stores. These stores with a low requirement of funds to settle would allow the business to reach global markets, without ending its domestic shops. The benefits and drawbacks of alternative 2 are given as follows;

Pros:

• Low financial investment
• Minimizing competitors danger
• Access to the world markets
• Expanding customer base
• Easy to manage
• Large Incomes
• Low Operating Expense
• Easy new market entryway

Cons:

• Threat to the marketplace position
• Removal of brand Individuality
• Removal of the excellent store experience.
• Threat of decline in elite sales.

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

Another choice that the company might consider, is to broaden towards the international markets without closing its domestic shops that contributes to the huge part of revenues of the company. The advantages and disadvantages connected to Alternative 3 are given listed below;

Pros:

• Minimizing competition threat
• Access to the world markets
• Enlarging consumer base
• Large Profits
• Exploration of brand-new worldwide markets.
• Boost in earnings from global markets.
• Profits diversification.
• Action towards being a strong international brand name.

Cons:

• Continuation of issues connected to variety.
• Differences in cultures could resulted in a failure of the brand name specifically in Asian nations.
• Low profits at initial levels.
• Boost in marketing expenses to gain market share.



This is sample work and not applicable to real case study. Please place the order on the website to get your own originally done case solution.