Recommendations of Acquisition Of Consolidated Rail Corporation (B) Case Help

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Recommendations of Acquisition Of Consolidated Rail Corporation (B) Case Study Solution

On the basis of above internal and external analysis of the company along with the evaluation of various alternatives, the company is suggested to consider alternative 3. As alternative 3 would permit the business to expand in international markets with no decrease in its local revenues and any wear and tear of its market position. By thinking about Alternative 3, the business might preserve its store experience and brand name originality. It could likewise consider alternative 2 that might allow the business to access the markets without any prospective investment. Although, the company might pursue alternative 1 which would make it possible for the company to focus on prospective international markets instead of the regional markets however as the company is extremely dependent on the local markets with 90% of its stores in the United States, there fore pursuing alternative 1 would result in the considerable decline in business's profits. The business is recommended to consider alternative 3.

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

The business has a long term market position in US which can not be produced soon in the brand-new markets. The alternative would assist the business to broaden in international markets along with the elimination of concerns raised in its regional markets related to its variety.

Pros:

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

Cons:

• Loss of extensive earnings from the regional markets.
• Increase in competition.
• Differences in cultures could led to a failure of the brand name especially in Asian nations.
• Low profits at preliminary levels.
• Boost in marketing expenditures to acquire market share.

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

Alternative 2 includes the introduction of online market places through producing an appropriate company's site. With the increased trends towards online shopping, the online shops like Amazon, Alibaba etc. might pose a serious danger to the market share of company. Moreover, the competitors are shifting towards click and Recommendations of Acquisition Of Consolidated Rail Corporation (B) Case Solution shops with Gap presenting Piperline. This shift towards online markets could decrease the profits for company. In this circumstance the business could consider introducing Click and Recommendations of Acquisition Of Consolidated Rail Corporation (B) Case Help stores. These shops with a low requirement of funds to settle would make it possible for the company to reach international markets, without ending its domestic shops. The benefits and drawbacks of alternative 2 are provided as follows;

Pros:

• Low financial investment
• Minimizing competition risk
• Access to the world markets
• Expanding customer base
• Easy to handle
• Big Incomes
• Low Operating Costs
• Easy brand-new market entryway

Cons:

• Threat to the market position
• Removal of brand name Individuality
• Elimination of the excellent store experience.
• Risk of decline in elite sales.

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

Another choice that the business could consider, is to broaden towards the global markets without closing its domestic shops that contributes to the huge part of profits of the company. The pros and cons connected to Alternative 3 are given listed below;

Pros:

• Decreasing competitors hazard
• Access to the world markets
• Expanding customer base
• Big Revenues
• Exploration of brand-new international markets.
• Increase in income from global markets.
• Revenue diversity.
• Action towards being a strong international brand.

Cons:

• Continuation of concerns associated with diversity.
• Distinctions in cultures might led to a failure of the brand name particularly in Asian countries.
• Low earnings at initial levels.
• Increase in marketing expenses to gain market share.



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