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 Help

On the basis of above internal and external analysis of the company along with the evaluation of different alternatives, the company is recommended to consider alternative 3. As alternative 3 would permit the business to expand in global markets without any reduction in its regional incomes and any wear and tear of its market position. By thinking about Alternative 3, the business might keep its shop experience and brand individuality. It might likewise think about alternative 2 that might permit the company to access the markets without any potential financial investment. The company could pursue alternative 1 which would make it possible for the business to focus on possible 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 alternative 1 would result in the significant decrease in company's revenue. The company is suggested to think about alternative 3.

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

The business has a long term market position in US which can not be produced quickly in the new markets. The choice would assist the business to expand in global markets along with the elimination of problems raised in its local markets related to its variety.

Pros:

• Exploration of new international markets.
• Increase in income from international markets.
• Elimination of concerns related to diversity.
• Revenue diversity.
• Step towards being a strong worldwide brand.

Cons:

• Loss of comprehensive earnings from the local markets.
• Boost in competition.
• Distinctions in cultures might caused a failure of the brand specifically in Asian nations.
• Low incomes at initial levels.
• Increase in marketing expenditures to get market share.

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

With the increased trends towards online shopping, the online shops like Amazon, Alibaba etc. could present a severe risk to the market share of business. In this scenario the company could consider 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 make it possible for the company to reach worldwide markets, without ending its domestic shops.

Pros:

• Low investment
• Decreasing competition threat
• Access to the world markets
• Enlarging customer base
• Easy to manage
• Large Profits
• Low Operating Expense
• Easy new market entrance

Cons:

• Risk to the marketplace position
• Elimination of brand Originality
• Elimination of the terrific shop experience.
• Danger of decline in elite sales.

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

Another choice that the business could consider, is to expand towards the worldwide markets without closing its domestic stores that adds to the major part of incomes of the company. The benefits and drawbacks connected to Alternative 3 are provided listed below;

Pros:

• Minimizing competitors threat
• Access to the world markets
• Increasing the size of customer base
• Large Incomes
• Exploration of new worldwide markets.
• Increase in profits from international markets.
• Earnings diversity.
• Action towards being a strong international brand name.

Cons:

• Extension of issues connected to diversity.
• Distinctions in cultures might caused a failure of the brand name particularly in Asian countries.
• Low revenues at preliminary levels.
• Increase in marketing expenses to acquire market share.



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