Recommendations of Petrolera Zuata Petrozuata C.A. Case Help
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Recommendations of Petrolera Zuata Petrozuata C.A. Case Study Solution
On the basis of above internal and external analysis of the company along with the examination of numerous options, the company is recommended to think about alternative 3. As alternative 3 would allow the business to broaden in worldwide markets without any reduction in its local incomes and any degeneration of its market position. The company might pursue alternative 1 which would make it possible for the company to focus on potential international markets rather than the regional markets however as the company is highly reliant on the regional markets with 90% of its shops in the US, there fore pursuing option 1 would result in the substantial decrease in business's revenue.
Aletrnative-1: Expanding International Brick and Recommendations of Petrolera Zuata Petrozuata C.A. Case Analysis Stores
The business has a long term market position in United States which can not be produced soon in the brand-new markets. The option would assist the company to expand in worldwide markets along with the removal of issues raised in its local markets related to its variety.
Pros:
• Expedition of new worldwide markets.
• Boost in profits from worldwide markets.
• Removal of issues connected to variety.
• Revenue diversification.
• Step towards being a strong worldwide brand name.
Cons:
• Loss of substantial profits from the local markets.
• Boost in competition.
• Distinctions in cultures could caused a failure of the brand specifically in Asian countries.
• Low revenues at preliminary levels.
• Increase in marketing expenditures to get market share.
Alternative-2: Introduction of Click and Recommendations of Petrolera Zuata Petrozuata C.A. Case Solution Stores
Alternative 2 includes the intro of online market places through producing a proper company's website. With the increased trends towards online shopping, the online shops like Amazon, Alibaba and so on might present a serious danger to the market share of business. Furthermore, the rivals are shifting towards click and Recommendations of Petrolera Zuata Petrozuata C.A. Case Solution stores with Space introducing Piperline. This shift towards online markets might minimize the revenues for company. In this situation the company could think about presenting Click and Recommendations of Petrolera Zuata Petrozuata C.A. Case Solution shops. These shops with a low requirement of funds to settle would enable the business to reach global markets, without ending its domestic stores. The advantages and disadvantages of option 2 are offered as follows;
Pros:
• Low financial investment
• Decreasing competition risk
• Access to the world markets
• Enlarging consumer base
• Easy to handle
• Big Incomes
• Low Operating Expense
• Easy brand-new market entrance
Cons:
• Risk to the market position
• Elimination of brand name Uniqueness
• Removal of the great store experience.
• Danger of decline in elite sales.
Alternative-3: Expansion towards International Markets Without closing Domestic Stores
Another option that the business could consider, is to expand towards the global markets without closing its domestic stores that contributes to the huge part of revenues of the business. The pros and cons related to Alternative 3 are given below;
Pros:
• Lowering competitors danger
• Access to the world markets
• Expanding consumer base
• Big Incomes
• Expedition of new global markets.
• Increase in earnings from worldwide markets.
• Revenue diversity.
• Step towards being a strong worldwide brand.
Cons:
• Extension of concerns related to diversity.
• Distinctions in cultures could resulted in a failure of the brand especially in Asian nations.
• Low earnings at initial levels.
• Increase in marketing expenses to acquire market share.
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