Recommendations of Molycorp: Financing The Production Of Rare Earth Minerals Case Analysis

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Recommendations of Molycorp: Financing The Production Of Rare Earth Minerals Case Study Analysis

On the basis of above internal and external analysis of the business in addition to the assessment of various alternatives, the business is recommended to consider alternative 3. As alternative 3 would allow the business to broaden in international markets without any decrease in its regional incomes and any deterioration of its market position. By considering Alternative 3, the company could keep its shop experience and brand uniqueness. It might also consider alternative 2 that could permit the business to access the markets without any possible financial investment. The company could pursue alternative 1 which would make it possible for the business to focus on possible global markets rather than the local markets but as the business is highly dependent on the local markets with 90% of its shops in the US, there fore pursuing alternative 1 would result in the significant decline in company's revenue. For that reason, the company is suggested to think about alternative 3.

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

Expansion towards worldwide markets through opening new shops in other Europe and Asian nations with closing domestic stores is although a good option for increasing the worldwide existence of the company. However, the closing of domestic shops could extremely impact the incomes of the firm as above 90% of its stores are located domestically and closing those stores would eventually reduce the revenues of the firm. The business has a long term market position in United States which can not be created quickly in the new markets. The choice would help the company to expand in international markets in addition to the elimination of issues raised in its regional markets related to its variety. The benefits and drawbacks for Alternative 1 are noted below;

Pros:

• Exploration of new global markets.
• Boost in revenue from international markets.
• Removal of issues associated with diversity.
• Revenue diversification.
• Action towards being a strong global brand.

Cons:

• Loss of substantial revenues from the local markets.
• Boost in competitors.
• Differences in cultures could caused a failure of the brand especially in Asian nations.
• Low revenues at preliminary levels.
• Boost in marketing expenses to gain market share.

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

Alternative 2 consists of the intro of online market places through generating a correct business's site. With the increased patterns towards online shopping, the online stores like Amazon, Alibaba etc. might present a severe danger to the market share of business. The competitors are shifting towards click and Recommendations of Molycorp: Financing The Production Of Rare Earth Minerals Case Solution shops with Gap presenting Piperline. This shift towards online markets could lower the earnings for company. In this scenario the business could think about presenting Click and Recommendations of Molycorp: Financing The Production Of Rare Earth Minerals Case Help stores. These stores with a low requirement of funds to settle would make it possible for the business to reach global markets, without ending its domestic stores. The pros and cons of alternative 2 are provided as follows;

Pros:

• Low financial investment
• Lowering competitors risk
• Access to the world markets
• Expanding consumer base
• Easy to handle
• Large Incomes
• Low Operating Expense
• Easy brand-new market entrance

Cons:

• Danger to the market position
• Removal of brand Individuality
• Removal of the excellent store experience.
• Danger of decrease in elite sales.

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

Another choice that the business might consider, is to expand towards the international markets without closing its domestic stores that adds to the major part of revenues of the company. The advantages and disadvantages connected to Alternative 3 are given listed below;

Pros:

• Decreasing competition risk
• Access to the world markets
• Enlarging consumer base
• Large Profits
• Expedition of brand-new global markets.
• Boost in profits from global markets.
• Profits diversity.
• Step towards being a strong international brand name.

Cons:

• Extension of problems connected to variety.
• Differences in cultures might caused a failure of the brand specifically in Asian nations.
• Low earnings at preliminary levels.
• Boost in marketing expenses to gain market share.



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