Recommendations of Molycorp: Financing The Production Of Rare Earth Minerals (A) Case Help

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Recommendations of Molycorp: Financing The Production Of Rare Earth Minerals (A) Case Study Help

On the basis of above internal and external analysis of the business together with the evaluation of different options, the business is advised to think about alternative 3. As alternative 3 would permit the company to expand in global markets without any decrease in its local profits and any wear and tear of its market position. By considering Alternative 3, the company might preserve its shop experience and brand name originality. However, it might also consider alternative 2 that might allow the business to access the markets without any potential investment. The company could pursue alternative 1 which would allow the company to focus on potential worldwide markets rather than the regional markets however as the company is extremely reliant on the regional markets with 90% of its stores in the US, there fore pursuing option 1 would result in the considerable decline in business's earnings. The business is suggested to consider alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of Molycorp: Financing The Production Of Rare Earth Minerals (A) Case Help Stores

The company has a long term market position in US which can not be generated quickly in the brand-new markets. The choice would help the business to broaden in international markets along with the removal of issues raised in its local markets related to its variety.

Pros:

• Expedition of new international markets.
• Boost in income from international markets.
• Elimination of problems related to diversity.
• Revenue diversification.
• Action towards being a strong worldwide brand.

Cons:

• Loss of extensive earnings from the regional markets.
• Increase in competitors.
• Differences in cultures could caused a failure of the brand name particularly in Asian nations.
• Low earnings at preliminary levels.
• Increase in marketing expenses to get market share.

Alternative-2: Introduction of Click and Recommendations of Molycorp: Financing The Production Of Rare Earth Minerals (A) Case Solution Stores

Alternative 2 consists of the introduction of online market locations through generating a proper company's website. With the increased trends towards online shopping, the online stores like Amazon, Alibaba etc. could pose a severe danger to the marketplace share of company. The competitors are moving towards click and Recommendations of Molycorp: Financing The Production Of Rare Earth Minerals (A) Case Help shops with Space presenting Piperline. This shift towards online markets could reduce the profits for company. In this situation the company could think about introducing Click and Recommendations of Molycorp: Financing The Production Of Rare Earth Minerals (A) Case Analysis stores. These stores with a low requirement of funds to settle would allow the business to reach worldwide markets, without ending its domestic shops. The advantages and disadvantages of option 2 are offered as follows;

Pros:

• Low investment
• Lowering competition hazard
• Access to the world markets
• Increasing the size of consumer base
• Easy to handle
• Big Earnings
• Low Operating Costs
• Easy new market entryway

Cons:

• Danger to the market position
• Removal of brand Uniqueness
• Removal of the great store experience.
• Threat of decrease in elite sales.

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

Another option that the company could think about, is to broaden towards the worldwide markets without closing its domestic stores that contributes to the huge part of profits of the company. The benefits and drawbacks associated with Alternative 3 are given listed below;

Pros:

• Decreasing competitors hazard
• Access to the world markets
• Enlarging customer base
• Large Earnings
• Expedition of brand-new global markets.
• Boost in revenue from worldwide markets.
• Profits diversity.
• Step towards being a strong worldwide brand name.

Cons:

• Continuation of problems connected to diversity.
• Distinctions in cultures might caused a failure of the brand name particularly in Asian countries.
• Low incomes at preliminary levels.
• Increase in marketing expenditures to gain market share.



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