Recommendations of Buffetts Bid For Media Generals Newspapers Case Solution

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On the basis of above internal and external analysis of the business along with the assessment of various alternatives, the company is suggested to consider alternative 3. As alternative 3 would permit the business to expand in global markets with no reduction in its regional revenues and any deterioration of its market position. By considering Alternative 3, the company could preserve its store experience and brand individuality. However, it might likewise think about alternative 2 that might allow the business to access the markets with no possible investment. Although, the business could pursue alternative 1 which would enable the company to concentrate on potential worldwide markets rather than the regional markets but as the business is extremely dependent on the local markets with 90% of its shops in the US, there fore pursuing alternative 1 would lead to the substantial decrease in business's earnings. Therefore, the business is recommended to think about alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of Buffetts Bid For Media Generals Newspapers Case Analysis Stores

Expansion towards international markets through opening brand-new shops in other Europe and Asian countries with closing domestic stores is although a great alternative for increasing the worldwide presence of the company. The closing of domestic stores could highly impact the revenues of the firm as above 90% of its shops are located domestically and closing those shops would eventually minimize the earnings of the company. The company has a long term market position in US which can not be generated soon in the new markets. The option would help the company to broaden in international markets together with the removal of concerns raised in its regional markets related to its diversity. The advantages and disadvantages for Option 1 are listed below;

Pros:

• Exploration of brand-new global markets.
• Increase in revenue from international markets.
• Removal of problems associated with diversity.
• Profits diversification.
• Step towards being a strong international brand.

Cons:

• Loss of extensive revenues from the regional markets.
• Increase in competition.
• Differences in cultures could resulted in a failure of the brand name particularly in Asian countries.
• Low profits at initial levels.
• Increase in marketing expenses to gain market share.

Alternative-2: Introduction of Click and Recommendations of Buffetts Bid For Media Generals Newspapers Case Solution Stores

With the increased trends towards online shopping, the online shops like Amazon, Alibaba etc. might posture an extreme risk to the market share of company. In this situation the company could think about introducing Click and Recommendations of Buffetts Bid For Media Generals Newspapers Case Solution stores. These stores with a low requirement of funds to settle would enable the business to reach global markets, without ending its domestic shops.

Pros:

• Low investment
• Lowering competitors risk
• Access to the world markets
• Increasing the size of consumer base
• Easy to manage
• Large Incomes
• Low Operating Costs
• Easy new market entrance

Cons:

• Hazard to the market position
• Removal of brand Originality
• Removal of the great shop experience.
• Danger of decrease in elite sales.

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

Another alternative that the business might think about, is to expand towards the worldwide markets without closing its domestic stores that adds to the huge part of incomes of the business. The advantages and disadvantages associated with Alternative 3 are given listed below;

Pros:

• Lowering competitors danger
• Access to the world markets
• Expanding customer base
• Big Profits
• Exploration of new international markets.
• Increase in income from international markets.
• Earnings diversity.
• Step towards being a strong worldwide brand.

Cons:

• Continuation of issues connected to variety.
• Distinctions in cultures could caused a failure of the brand name specifically in Asian countries.
• Low profits at preliminary levels.
• Increase in marketing expenditures to acquire market share.



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