Recommendations of Bp Amoco (A) And (B) Case Help

Home >> Harvard Business School >> Bp Amoco (A) And (B) >> Recommendations

Recommendations of Bp Amoco (A) And (B) Case Study Analysis

On the basis of above internal and external analysis of the business in addition to the assessment of numerous alternatives, the company is suggested to consider alternative 3. As alternative 3 would allow the company to expand in global markets with no reduction in its local earnings and any wear and tear of its market position. By considering Alternative 3, the company might preserve its store experience and brand uniqueness. Nevertheless, it might also consider alternative 2 that could allow the business to access the marketplaces with no prospective financial investment. The company might pursue alternative 1 which would allow the company to focus on prospective international markets rather than the local markets but as the company is extremely reliant on the regional markets with 90% of its shops in the US, there fore pursuing option 1 would result in the considerable decrease in company's profits. The business is recommended to consider alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of Bp Amoco (A) And (B) Case Help Stores

Expansion towards worldwide markets through opening new shops in other Europe and Asian countries with closing domestic stores is although an excellent option for increasing the international existence of the company. The closing of domestic shops could extremely affect the incomes of the company as above 90% of its shops are situated domestically and closing those stores would ultimately lower the earnings of the firm. The business has a long term market position in US which can not be generated soon in the new markets. The alternative would help the company to broaden in global markets in addition to the elimination of problems raised in its regional markets connected to its variety. The pros and Cons for Alternative 1 are noted below;

Pros:

• Expedition of brand-new worldwide markets.
• Boost in income from worldwide markets.
• Elimination of issues associated with variety.
• Earnings diversity.
• Action towards being a strong worldwide brand name.

Cons:

• Loss of extensive earnings from the local markets.
• Increase in competition.
• Differences in cultures could resulted in a failure of the brand particularly in Asian countries.
• Low earnings at preliminary levels.
• Boost in marketing expenditures to get market share.

Alternative-2: Introduction of Click and Recommendations of Bp Amoco (A) And (B) Case Analysis Stores

Alternative 2 consists of the introduction of online market locations through generating a proper business's website. With the increased trends towards online shopping, the online stores like Amazon, Alibaba etc. might present an extreme hazard to the market share of company. Additionally, the rivals are shifting towards click and Recommendations of Bp Amoco (A) And (B) Case Analysis shops with Space presenting Piperline. This shift towards online markets could minimize the profits for business. In this circumstance the company could think about presenting Click and Recommendations of Bp Amoco (A) And (B) Case Analysis shops. These shops with a low requirement of funds to settle would enable the business to reach worldwide markets, without ending its domestic stores. The benefits and drawbacks of alternative 2 are given as follows;

Pros:

• Low financial investment
• Minimizing competition hazard
• Access to the world markets
• Increasing the size of customer base
• Easy to handle
• Large Earnings
• Low Operating Expense
• Easy new market entryway

Cons:

• Hazard to the market position
• Elimination of brand name Originality
• Elimination of the excellent shop experience.
• Risk of decrease in elite sales.

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

Another alternative that the company might consider, is to broaden towards the global markets without closing its domestic shops that adds to the huge part of profits of the business. The pros and cons related to Alternative 3 are provided listed below;

Pros:

• Minimizing competitors risk
• Access to the world markets
• Increasing the size of consumer base
• Big Incomes
• Exploration of brand-new worldwide markets.
• Boost in profits from worldwide markets.
• Income diversity.
• Step towards being a strong global brand.

Cons:

• Extension of problems connected to variety.
• Distinctions in cultures might resulted in a failure of the brand name specifically in Asian nations.
• Low incomes at initial levels.
• Increase in marketing expenses to gain market share.



This is sample work and not applicable to real case study. Please place the order on the website to get your own originally done case solution.