Recommendations of Financing The Mozal Project Case Analysis

Home >> Harvard Business School >> Financing The Mozal Project >> Recommendations

Recommendations of Financing The Mozal Project Case Study Solution

On the basis of above internal and external analysis of the company in addition to the examination of numerous alternatives, the business is advised to consider alternative 3. As alternative 3 would enable the business to expand in worldwide markets without any decrease in its local revenues and any degeneration of its market position. By considering Alternative 3, the company might maintain its store experience and brand name uniqueness. It could also consider alternative 2 that might permit the company to access the markets without any possible investment. The company might pursue alternative 1 which would make it possible for the business to focus on potential international markets rather than the local markets however as the business is highly reliant on the local markets with 90% of its shops in the United States, there fore pursuing alternative 1 would result in the significant decline in company's earnings. The company is recommended to think about alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of Financing The Mozal Project Case Help Stores

Growth towards global markets through opening new stores in other Europe and Asian nations with closing domestic stores is although an excellent alternative for increasing the worldwide presence of the company. Nevertheless, the closing of domestic shops could highly affect the revenues of the firm as above 90% of its shops are located domestically and closing those shops would ultimately reduce the revenues of the firm. The business has a long term market position in US which can not be created quickly in the new markets. The option would help the company to expand in global markets in addition to the removal of concerns raised in its regional markets associated with its diversity. The advantages and disadvantages for Option 1 are listed below;

Pros:

• Exploration of brand-new worldwide markets.
• Increase in earnings from worldwide markets.
• Removal of concerns associated with diversity.
• Revenue diversity.
• Step towards being a strong global brand.

Cons:

• Loss of comprehensive incomes from the local markets.
• Boost in competitors.
• Distinctions in cultures might resulted in a failure of the brand name specifically in Asian nations.
• Low revenues at initial levels.
• Increase in marketing expenses to gain market share.

Alternative-2: Introduction of Click and Recommendations of Financing The Mozal Project Case Help Stores

Alternative 2 includes the introduction of online market places through creating an appropriate business's website. With the increased patterns towards online shopping, the online stores like Amazon, Alibaba etc. might position an extreme danger to the marketplace share of business. The rivals are moving towards click and Recommendations of Financing The Mozal Project Case Solution shops with Gap presenting Piperline. This shift towards online markets could reduce the incomes for company. In this situation the company might consider introducing Click and Recommendations of Financing The Mozal Project Case Analysis stores. These shops with a low requirement of funds to settle would allow the company to reach global markets, without ending its domestic shops. The benefits and drawbacks of alternative 2 are provided as follows;

Pros:

• Low investment
• Minimizing competition risk
• Access to the world markets
• Enlarging consumer base
• Easy to handle
• Large Earnings
• Low Operating Expense
• Easy new market entryway

Cons:

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

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

Another alternative that the company could consider, is to broaden towards the global markets without closing its domestic stores that adds to the major part of revenues of the business. The advantages and disadvantages connected to Alternative 3 are provided below;

Pros:

• Minimizing competition threat
• Access to the world markets
• Expanding consumer base
• Big Earnings
• Expedition of new worldwide markets.
• Increase in revenue from worldwide markets.
• Profits diversification.
• Step towards being a strong worldwide brand name.

Cons:

• Extension of issues connected to variety.
• Distinctions in cultures could resulted in a failure of the brand particularly in Asian nations.
• Low revenues at preliminary levels.
• Increase in marketing expenditures to acquire 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.