Recommendations of Bergerac Systems: The Challenge Of Backward Integration Case Solution

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Recommendations of Bergerac Systems: The Challenge Of Backward Integration Case Study Analysis

On the basis of above internal and external analysis of the business in addition to the evaluation of various options, the business is recommended to consider alternative 3. As alternative 3 would permit the business to expand in global markets without any reduction in its regional incomes and any degeneration of its market position. By thinking about Alternative 3, the company might keep its store experience and brand name uniqueness. Nevertheless, it could also consider alternative 2 that might allow the company to access the markets without any potential financial investment. Although, the business could pursue alternative 1 which would allow the company to focus on possible worldwide markets instead of the regional markets however as the company is extremely dependent on the regional markets with 90% of its stores in the United States, there fore pursuing option 1 would lead to the considerable decline in company's earnings. For that reason, the business is recommended to think about alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of Bergerac Systems: The Challenge Of Backward Integration Case Solution Stores

Expansion towards global markets through opening new shops in other Europe and Asian countries with closing domestic stores is although a good choice for increasing the worldwide existence of the company. The closing of domestic stores could extremely impact the revenues of the firm as above 90% of its stores are located domestically and closing those shops would ultimately decrease the profits of the firm. The business has a long term market position in United States which can not be generated quickly in the brand-new markets. The alternative would assist the company to expand in global markets together with the removal of problems raised in its regional markets connected to its diversity. The pros and Cons for Alternative 1 are noted below;

Pros:

• Expedition of brand-new worldwide markets.
• Boost in profits from international markets.
• Removal of problems connected to variety.
• Profits diversity.
• Action towards being a strong worldwide brand name.

Cons:

• Loss of comprehensive revenues from the local markets.
• Increase in competition.
• Differences in cultures could resulted in a failure of the brand name particularly in Asian nations.
• Low earnings at preliminary levels.
• Increase in marketing expenses to gain market share.

Alternative-2: Introduction of Click and Recommendations of Bergerac Systems: The Challenge Of Backward Integration Case Solution Stores

Alternative 2 includes the intro of online market locations through generating a proper company's website. With the increased trends towards online shopping, the online shops like Amazon, Alibaba etc. might present a severe danger to the marketplace share of company. Moreover, the rivals are shifting towards click and Recommendations of Bergerac Systems: The Challenge Of Backward Integration Case Help stores with Gap introducing Piperline. This shift towards online markets could minimize the incomes for business. In this circumstance the company could think about introducing Click and Recommendations of Bergerac Systems: The Challenge Of Backward Integration Case Solution stores. These shops with a low requirement of funds to settle would make it possible for the business to reach international markets, without ending its domestic stores. The advantages and disadvantages of option 2 are offered as follows;

Pros:

• Low financial investment
• Decreasing competition threat
• Access to the world markets
• Enlarging consumer base
• Easy to manage
• Big Earnings
• Low Operating Costs
• Easy brand-new market entryway

Cons:

• Hazard to the marketplace position
• Removal of brand name Originality
• Removal of the terrific shop experience.
• Threat of decrease in elite sales.

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

Another option that the business could think about, is to broaden towards the international markets without closing its domestic stores that contributes to the huge part of incomes of the company. The pros and cons connected to Alternative 3 are provided below;

Pros:

• Lowering competition threat
• Access to the world markets
• Increasing the size of consumer base
• Big Profits
• Expedition of new worldwide markets.
• Boost in revenue from international markets.
• Profits diversity.
• Action towards being a strong worldwide brand.

Cons:

• Extension of issues connected to variety.
• Distinctions in cultures could caused a failure of the brand particularly in Asian nations.
• Low incomes at initial levels.
• Increase in marketing expenses to get market share.



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