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

RecommendationsOn the basis of above internal and external analysis of the business along with the evaluation of numerous options, the company is recommended to think about alternative 3. As alternative 3 would enable the business to broaden in global markets with no decrease in its regional revenues and any wear and tear of its market position. By thinking about Alternative 3, the company could maintain its shop experience and brand name individuality. It could likewise think about alternative 2 that could enable the company to access the markets without any possible financial investment. Although, the business could pursue alternative 1 which would enable the business to concentrate on possible global markets instead of the local markets but as the business is extremely dependent on the local markets with 90% of its shops in the US, there fore pursuing alternative 1 would result in the substantial decrease in business's revenue. Therefore, the business is recommended to think about alternative 3.

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

International SegmentsExpansion towards global markets through opening new stores in other Europe and Asian nations with closing domestic stores is although a great alternative for increasing the international existence of the company. The closing of domestic stores might extremely impact the profits of the firm as above 90% of its shops are situated domestically and closing those stores would eventually reduce the profits of the firm. 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 international markets along with the elimination of problems raised in its regional markets associated with its diversity. The benefits and drawbacks for Alternative 1 are noted below;

Pros:

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

Cons:

• Loss of extensive earnings from the regional markets.
• Increase in competitors.
• Distinctions in cultures might led to a failure of the brand name particularly in Asian countries.
• Low earnings at preliminary levels.
• Boost in marketing expenditures to acquire market share.

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

Alternative 2 consists of the intro of online market places through generating an appropriate business's site. With the increased trends towards online shopping, the online shops like Amazon, Alibaba and so on might present an extreme hazard to the marketplace share of company. Furthermore, the rivals are shifting towards click and Recommendations of Sanofi Synthelabo-Aventis: The French Connection Of Mega Mergers Case Solution stores with Gap introducing Piperline. This shift towards online markets might minimize the profits for company. In this circumstance the company could think about presenting Click and Recommendations of Sanofi Synthelabo-Aventis: The French Connection Of Mega Mergers Case Help stores. These stores with a low requirement of funds to settle would enable the company to reach international markets, without ending its domestic stores. The advantages and disadvantages of alternative 2 are provided as follows;

Pros:

• Low investment
• Decreasing competitors hazard
• Access to the world markets
• Increasing the size of consumer base
• Easy to manage
• Large Incomes
• Low Operating Expense
• Easy brand-new market entrance

Cons:

• Hazard to the market position
• Elimination of brand name Individuality
• 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 business could consider, is to broaden towards the global markets without closing its domestic stores that adds to the huge part of revenues of the company. The advantages and disadvantages associated with Alternative 3 are given listed below;

Pros:

• Decreasing competitors hazard
• Access to the world markets
• Enlarging consumer base
• Big Revenues
• Exploration of brand-new global markets.
• Increase in earnings from worldwide markets.
• Earnings diversification.
• Step towards being a strong international brand name.

Cons:

• Continuation of problems connected to diversity.
• Distinctions in cultures might resulted in a failure of the brand name especially in Asian countries.
• Low earnings at initial levels.
• Increase in marketing expenses to gain market share.



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