Recommendations of Sanofi Synthã©Labo-Aventis (A): The French Connection Of Mega Mergers Case Help

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Recommendations of Sanofi Synthã©Labo-Aventis (A): The French Connection Of Mega Mergers Case Study Solution

RecommendationsOn the basis of above internal and external analysis of the business along with the examination of numerous options, the company is suggested to think about alternative 3. As alternative 3 would enable the company to broaden in worldwide markets without any reduction in its regional incomes and any degeneration of its market position. The company could pursue alternative 1 which would enable the company to focus on prospective international markets rather than the local markets but as the company is extremely reliant on the regional markets with 90% of its shops in the US, there fore pursuing option 1 would result in the substantial decrease in business's revenue.

Aletrnative-1: Expanding International Brick and Recommendations of Sanofi Synthã©Labo-Aventis (A): The French Connection Of Mega Mergers Case Analysis Stores

International SegmentsGrowth towards worldwide markets through opening brand-new shops in other Europe and Asian nations with closing domestic shops is although a good choice for increasing the international presence of the company. The closing of domestic stores could highly affect the revenues of the company as above 90% of its shops are located domestically and closing those shops would ultimately decrease the profits of the firm. The business has a long term market position in US which can not be created soon in the new markets. The choice would help the company to broaden in global markets together with the elimination of issues raised in its local markets associated with its variety. The pros and Cons for Option 1 are listed below;

Pros:

• Expedition of brand-new international markets.
• Increase in income from global markets.
• Removal of concerns associated with variety.
• Profits diversity.
• Step towards being a strong worldwide brand name.

Cons:

• Loss of substantial profits from the regional markets.
• Increase in competition.
• Differences in cultures might led to a failure of the brand especially in Asian countries.
• Low earnings at preliminary levels.
• Boost in marketing expenditures to get market share.

Alternative-2: Introduction of Click and Recommendations of Sanofi Synthã©Labo-Aventis (A): The French Connection Of Mega Mergers Case Help Stores

Alternative 2 includes the introduction of online market places through producing a correct business's site. With the increased trends towards online shopping, the online shops like Amazon, Alibaba etc. could pose an extreme threat to the marketplace share of business. The rivals are moving towards click and Recommendations of Sanofi Synthã©Labo-Aventis (A): The French Connection Of Mega Mergers Case Analysis shops with Space presenting Piperline. This shift towards online markets could lower the earnings for business. In this situation the business could consider introducing Click and Recommendations of Sanofi Synthã©Labo-Aventis (A): The French Connection Of Mega Mergers Case Solution stores. These stores with a low requirement of funds to settle would enable the company to reach international markets, without ending its domestic shops. The pros and cons of alternative 2 are offered as follows;

Pros:

• Low financial investment
• Lowering competition hazard
• Access to the world markets
• Enlarging customer base
• Easy to manage
• Large Earnings
• Low Operating Costs
• Easy new market entryway

Cons:

• Hazard to the marketplace position
• Elimination of brand Originality
• Elimination of the great shop experience.
• Risk of decrease in elite sales.

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

Another alternative that the business might consider, is to expand towards the worldwide markets without closing its domestic stores that contributes to the major part of revenues of the business. The advantages and disadvantages associated with Alternative 3 are offered below;

Pros:

• Lowering competition hazard
• Access to the world markets
• Enlarging customer base
• Big Profits
• Exploration of new international markets.
• Boost in revenue from international markets.
• Revenue diversity.
• Action towards being a strong global brand.

Cons:

• Continuation of issues related to diversity.
• Differences in cultures might caused a failure of the brand name especially in Asian nations.
• Low incomes at initial levels.
• Boost in marketing expenses to get market share.



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