Recommendations of Aluminium Bahrain (Alba): The Pot Line 5 Expansion Project Case Solution

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Recommendations of Aluminium Bahrain (Alba): The Pot Line 5 Expansion Project Case Study Solution

On the basis of above internal and external analysis of the business along with the examination of different options, the business is suggested to consider alternative 3. As alternative 3 would permit the business to broaden in global markets without any reduction in its local earnings and any wear and tear of its market position. The business might pursue alternative 1 which would allow the company to focus on possible worldwide markets rather than the regional markets however as the company is extremely dependent on the local markets with 90% of its stores in the US, there fore pursuing alternative 1 would result in the substantial decrease in business's income.

Aletrnative-1: Expanding International Brick and Recommendations of Aluminium Bahrain (Alba): The Pot Line 5 Expansion Project Case Analysis Stores

Growth towards international markets through opening new shops in other Europe and Asian countries with closing domestic shops is although a great option for increasing the worldwide existence of the business. However, the closing of domestic stores might extremely affect the incomes of the firm as above 90% of its stores lie locally and closing those stores would eventually decrease the earnings of the company. Moreover, the company has a long term market position in US which can not be produced quickly in the brand-new markets. The option would assist the business to broaden in international markets along with the elimination of issues raised in its regional markets related to its diversity. The pros and Cons for Option 1 are listed below;

Pros:

• Exploration of brand-new international markets.
• Increase in earnings from worldwide markets.
• Removal of problems connected to variety.
• Income diversification.
• Action towards being a strong worldwide brand.

Cons:

• Loss of extensive revenues from the regional markets.
• Boost in competitors.
• Differences in cultures might caused a failure of the brand especially in Asian nations.
• Low earnings at preliminary levels.
• Increase in marketing expenses to acquire market share.

Alternative-2: Introduction of Click and Recommendations of Aluminium Bahrain (Alba): The Pot Line 5 Expansion Project Case Analysis Stores

With the increased patterns towards online shopping, the online stores like Amazon, Alibaba etc. could present a severe threat to the market share of company. In this circumstance the company could think about presenting Click and Recommendations of Aluminium Bahrain (Alba): The Pot Line 5 Expansion Project Case Solution shops. These shops with a low requirement of funds to settle would enable the company to reach international markets, without ending its domestic stores.

Pros:

• Low investment
• Lowering competitors hazard
• Access to the world markets
• Expanding customer base
• Easy to handle
• Large Earnings
• Low Operating Costs
• Easy brand-new market entrance

Cons:

• Threat to the market position
• Elimination of brand name Uniqueness
• Removal of the great shop experience.
• Danger of decrease in elite sales.

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

Another choice that the business might consider, is to expand towards the international markets without closing its domestic shops that contributes to the major part of revenues of the company. The pros and cons associated with Alternative 3 are offered listed below;

Pros:

• Decreasing competitors danger
• Access to the world markets
• Enlarging customer base
• Big Earnings
• Exploration of new global markets.
• Increase in revenue from international markets.
• Profits diversity.
• Step towards being a strong international brand name.

Cons:

• Continuation of problems associated with variety.
• Differences in cultures could resulted in a failure of the brand specifically in Asian countries.
• Low earnings at preliminary levels.
• Boost in marketing expenses to acquire market share.



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