Recommendations of Americhem: The Gaylord Division (B-1) Case Help

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Recommendations of Americhem: The Gaylord Division (B-1) Case Study Analysis

On the basis of above internal and external analysis of the business along with the examination of various alternatives, the business is advised to think about alternative 3. As alternative 3 would enable the business to broaden in international markets with no decrease in its regional earnings and any degeneration of its market position. By thinking about Alternative 3, the company could keep its shop experience and brand name uniqueness. It might also think about alternative 2 that might enable the company to access the markets without any possible investment. The company could pursue alternative 1 which would allow the business to focus on potential global markets rather than the local markets however as the business is highly reliant on the local markets with 90% of its shops in the US, there fore pursuing alternative 1 would result in the considerable decline in business's revenue. The business is advised to think about alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of Americhem: The Gaylord Division (B-1) Case Analysis Stores

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

Pros:

• Expedition of brand-new international markets.
• Increase in revenue from worldwide markets.
• Removal of issues connected to diversity.
• Earnings diversity.
• Action towards being a strong international brand.

Cons:

• Loss of substantial profits from the regional markets.
• Increase in competitors.
• Distinctions in cultures might caused a failure of the brand particularly in Asian countries.
• Low revenues at preliminary levels.
• Increase in marketing expenditures to gain market share.

Alternative-2: Introduction of Click and Recommendations of Americhem: The Gaylord Division (B-1) Case Help Stores

Alternative 2 consists of the intro of online market places through creating a correct company's website. With the increased trends towards online shopping, the online stores like Amazon, Alibaba and so on might present a severe threat to the marketplace share of business. Additionally, the competitors are shifting towards click and Recommendations of Americhem: The Gaylord Division (B-1) Case Help shops with Space introducing Piperline. This shift towards online markets might lower the profits for company. In this situation the business could consider introducing Click and Recommendations of Americhem: The Gaylord Division (B-1) Case Analysis shops. These stores 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 option 2 are given as follows;

Pros:

• Low investment
• Decreasing competition threat
• Access to the world markets
• Enlarging customer base
• Easy to manage
• Large Incomes
• Low Operating Costs
• Easy new market entryway

Cons:

• Threat to the marketplace position
• Removal of brand name Individuality
• Removal of the fantastic store experience.
• Risk of decline in elite sales.

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

Another option that the company 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 given listed below;

Pros:

• Reducing competition threat
• Access to the world markets
• Expanding customer base
• Big Revenues
• Expedition of brand-new global markets.
• Boost in income from global markets.
• Earnings diversity.
• Action towards being a strong international brand name.

Cons:

• Extension of problems connected to diversity.
• Differences in cultures could led to a failure of the brand name specifically in Asian nations.
• Low revenues at preliminary levels.
• Boost in marketing expenditures to gain market share.



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