Recommendations of Sanofi Synthelabo-Aventis The French Connection Of Mega Mergers Case Analysis

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Recommendations of Sanofi Synthelabo-Aventis The French Connection Of Mega Mergers Case Study Solution

On the basis of above internal and external analysis of the company along with the evaluation of numerous alternatives, the company is advised to think about alternative 3. As alternative 3 would enable the company to expand in international markets without any decrease in its local earnings and any wear and tear of its market position. The company could pursue alternative 1 which would make it possible for the business to focus on prospective worldwide markets rather than the regional markets but as the company is highly dependent on the regional markets with 90% of its stores in the US, there fore pursuing option 1 would result in the considerable decline in company's revenue.

Aletrnative-1: Expanding International Brick and Recommendations of Sanofi Synthelabo-Aventis The French Connection Of Mega Mergers Case Solution Stores

Expansion towards international markets through opening new shops in other Europe and Asian countries with closing domestic shops is although a great alternative for increasing the worldwide presence of the company. Nevertheless, the closing of domestic stores could highly affect the incomes of the company as above 90% of its shops are located locally and closing those stores would ultimately lower the profits of the company. Furthermore, the company has a long term market position in US which can not be generated quickly in the brand-new markets. The option would assist the business to broaden in international markets along with the elimination of problems raised in its regional markets connected to its diversity. The pros and Cons for Alternative 1 are listed below;

Pros:

• Exploration of brand-new worldwide markets.
• Boost in revenue from international markets.
• Removal of concerns connected to variety.
• Income diversity.
• Step towards being a strong worldwide brand.

Cons:

• Loss of substantial earnings from the regional markets.
• Boost in competitors.
• Differences in cultures might resulted in a failure of the brand name especially in Asian countries.
• Low revenues at initial levels.
• Increase in marketing expenses to gain market share.

Alternative-2: Introduction of Click and Recommendations of Sanofi Synthelabo-Aventis The French Connection Of Mega Mergers Case Help Stores

With the increased patterns towards online shopping, the online shops like Amazon, Alibaba etc. could pose a serious threat to the market share of company. In this situation the business might think about presenting Click and Recommendations of Sanofi Synthelabo-Aventis The French Connection Of Mega Mergers Case Solution stores. These shops with a low requirement of funds to settle would allow the business to reach global markets, without ending its domestic shops.

Pros:

• Low investment
• Lowering competitors risk
• Access to the world markets
• Increasing the size of customer base
• Easy to manage
• Large Profits
• Low Operating Expense
• Easy brand-new market entryway

Cons:

• Hazard to the marketplace position
• Removal of brand name Originality
• Removal of the fantastic store experience.
• Threat of decrease in elite sales.

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

Another alternative that the company could consider, is to broaden towards the global markets without closing its domestic stores that contributes to the huge part of earnings of the company. The benefits and drawbacks related to Alternative 3 are offered listed below;

Pros:

• Lowering competitors threat
• Access to the world markets
• Expanding customer base
• Big Revenues
• Expedition of new worldwide markets.
• Boost in income from global markets.
• Profits diversity.
• Step towards being a strong global brand.

Cons:

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



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