Recommendations of Acquisition Of Consolidated Rail Corporation (A) Case Solution

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Recommendations of Acquisition Of Consolidated Rail Corporation (A) Case Study Help

On the basis of above internal and external analysis of the company along with the examination of various options, the company is suggested to consider alternative 3. As alternative 3 would allow the company to broaden in worldwide markets without any reduction in its local revenues and any degeneration of its market position. The company might pursue alternative 1 which would enable the company to focus on prospective global markets rather than the local markets but as the company is highly dependent on the regional markets with 90% of its shops in the US, there fore pursuing alternative 1 would result in the significant decline in business's profits.

Aletrnative-1: Expanding International Brick and Recommendations of Acquisition Of Consolidated Rail Corporation (A) Case Analysis Stores

Growth towards global markets through opening new shops in other Europe and Asian countries with closing domestic shops is although an excellent alternative for increasing the international presence of the business. However, the closing of domestic stores could highly affect the incomes of the firm as above 90% of its shops lie domestically and closing those stores would eventually minimize the earnings of the company. Moreover, the company has a long term market position in United States which can not be created quickly in the new markets. The choice would help the company to expand in international markets along with the removal of issues raised in its regional markets related to its diversity. The benefits and drawbacks for Option 1 are listed below;

Pros:

• Expedition of brand-new global markets.
• Increase in income from international markets.
• Removal of problems connected to diversity.
• Earnings diversity.
• Step towards being a strong worldwide brand.

Cons:

• Loss of substantial earnings from the local markets.
• Boost in competition.
• Distinctions in cultures could caused a failure of the brand especially in Asian nations.
• Low profits at preliminary levels.
• Increase in marketing expenditures to gain market share.

Alternative-2: Introduction of Click and Recommendations of Acquisition Of Consolidated Rail Corporation (A) Case Help Stores

Alternative 2 includes the intro of online market locations through producing a proper business's site. With the increased trends towards online shopping, the online shops like Amazon, Alibaba and so on could posture an extreme hazard to the market share of business. The rivals are moving towards click and Recommendations of Acquisition Of Consolidated Rail Corporation (A) Case Help stores with Gap introducing Piperline. This shift towards online markets could lower the earnings for business. In this circumstance the company might consider introducing Click and Recommendations of Acquisition Of Consolidated Rail Corporation (A) Case Help shops. These stores with a low requirement of funds to settle would make it possible for the company to reach global markets, without ending its domestic shops. The advantages and disadvantages of alternative 2 are offered as follows;

Pros:

• Low financial investment
• Lowering competitors risk
• Access to the world markets
• Expanding customer base
• Easy to handle
• Large Profits
• Low Operating Expense
• Easy brand-new market entrance

Cons:

• Hazard to the market position
• Elimination of brand Individuality
• Removal of the great store experience.
• Risk of decrease in elite sales.

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

Another option that the business might think about, is to broaden towards the worldwide markets without closing its domestic shops that contributes to the huge part of revenues of the company. The pros and cons connected to Alternative 3 are given below;

Pros:

• Decreasing competition hazard
• Access to the world markets
• Enlarging consumer base
• Large Revenues
• Expedition of brand-new worldwide markets.
• Boost in profits from international markets.
• Earnings diversification.
• Action towards being a strong worldwide brand name.

Cons:

• Continuation of issues connected to variety.
• Differences in cultures could resulted in a failure of the brand especially in Asian nations.
• Low incomes at preliminary levels.
• Boost in marketing expenses to get market share.



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