Recommendations of Compass Maritime Services Llc: Valuing Ships Case Help

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Recommendations of Compass Maritime Services Llc: Valuing Ships Case Study Solution

On the basis of above internal and external analysis of the company along with the examination of various options, the company is suggested to think about alternative 3. As alternative 3 would permit the business to expand in worldwide markets with no decrease in its local incomes and any wear and tear of its market position. By thinking about Alternative 3, the company might maintain its shop experience and brand name individuality. However, it could also think about alternative 2 that could enable the business to access the markets without any potential financial investment. The business might pursue alternative 1 which would enable the business to focus on possible global markets rather than the regional markets but as the company is extremely dependent on the local markets with 90% of its stores in the United States, there fore pursuing option 1 would result in the substantial decrease in business's revenue. The company is advised to consider alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of Compass Maritime Services Llc: Valuing Ships Case Analysis Stores

The company has a long term market position in United States which can not be created quickly in the brand-new markets. The alternative would help the business to broaden in worldwide markets along with the removal of problems raised in its regional markets related to its diversity.

Pros:

• Exploration of brand-new worldwide markets.
• Boost in profits from global markets.
• Elimination of issues connected to variety.
• Earnings diversification.
• Action towards being a strong global brand name.

Cons:

• Loss of substantial earnings from the local markets.
• Boost in competition.
• Distinctions in cultures might led to a failure of the brand name specifically in Asian countries.
• Low profits at initial levels.
• Boost in marketing expenses to get market share.

Alternative-2: Introduction of Click and Recommendations of Compass Maritime Services Llc: Valuing Ships Case Analysis Stores

Alternative 2 consists of the intro of online market locations through producing a proper business's website. With the increased trends towards online shopping, the online stores like Amazon, Alibaba etc. might position a severe risk to the market share of company. The rivals are shifting towards click and Recommendations of Compass Maritime Services Llc: Valuing Ships Case Help stores with Gap introducing Piperline. This shift towards online markets might lower the earnings for company. In this scenario the company could consider presenting Click and Recommendations of Compass Maritime Services Llc: Valuing Ships Case Analysis shops. These stores with a low requirement of funds to settle would allow the company to reach worldwide markets, without ending its domestic stores. The pros and cons of alternative 2 are offered as follows;

Pros:

• Low investment
• Minimizing competitors risk
• Access to the world markets
• Increasing the size of customer base
• Easy to handle
• Big Revenues
• Low Operating Costs
• Easy new market entryway

Cons:

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

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

Another alternative that the business could think about, is to expand towards the international markets without closing its domestic stores that adds to the major part of profits of the company. The advantages and disadvantages connected to Alternative 3 are provided below;

Pros:

• Decreasing competition threat
• Access to the world markets
• Enlarging consumer base
• Big Revenues
• Expedition of brand-new worldwide markets.
• Increase in profits from global markets.
• Income diversity.
• Action towards being a strong worldwide brand name.

Cons:

• Continuation of concerns related to diversity.
• Differences in cultures could resulted in a failure of the brand specifically in Asian nations.
• Low profits at initial levels.
• Boost in marketing expenditures to acquire market share.



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