Recommendations of Shawmut National Corps Merger With Bank Of Boston Corporation (A) Case Solution

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Recommendations of Shawmut National Corps Merger With Bank Of Boston Corporation (A) Case Study Solution

On the basis of above internal and external analysis of the business along with the examination of different options, the company is recommended to consider alternative 3. As alternative 3 would enable the company to expand in global markets without any reduction in its local profits and any deterioration of its market position. By thinking about Alternative 3, the business could preserve its store experience and brand name individuality. However, it could likewise consider alternative 2 that could permit the business to access the markets with no potential financial investment. The business could pursue alternative 1 which would allow the business to focus on potential worldwide markets rather than the local markets however as the business is extremely dependent on the regional markets with 90% of its stores in the United States, there fore pursuing alternative 1 would result in the significant decline in company's income. The business is advised to consider alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of Shawmut National Corps Merger With Bank Of Boston Corporation (A) Case Solution Stores

Expansion towards international markets through opening new stores in other Europe and Asian nations with closing domestic shops is although a good option for increasing the global existence of the business. Nevertheless, the closing of domestic stores might highly impact the incomes of the company as above 90% of its shops lie locally and closing those stores would eventually minimize the profits of the company. The company has a long term market position in US which can not be created quickly in the new markets. The option would help the business to broaden in international markets in addition to the elimination of issues raised in its local markets connected to its variety. The advantages and disadvantages for Alternative 1 are listed below;

Pros:

• Exploration of brand-new international markets.
• Increase in profits from international markets.
• Elimination of problems connected to diversity.
• Income diversity.
• Action towards being a strong international brand.

Cons:

• Loss of extensive earnings from the local markets.
• Boost in competition.
• Differences in cultures might led to a failure of the brand especially in Asian nations.
• Low earnings at preliminary levels.
• Boost in marketing expenses to acquire market share.

Alternative-2: Introduction of Click and Recommendations of Shawmut National Corps Merger With Bank Of Boston Corporation (A) Case Solution Stores

With the increased patterns towards online shopping, the online shops like Amazon, Alibaba etc. could position an extreme threat to the market share of company. In this circumstance the company might think about introducing Click and Recommendations of Shawmut National Corps Merger With Bank Of Boston Corporation (A) Case Solution shops. These shops with a low requirement of funds to settle would make it possible for the business to reach international markets, without ending its domestic stores.

Pros:

• Low investment
• Reducing competitors hazard
• Access to the world markets
• Enlarging customer base
• Easy to handle
• Large Profits
• Low Operating Costs
• Easy brand-new market entryway

Cons:

• Danger to the market position
• Removal of brand name Individuality
• Removal of the terrific shop experience.
• Risk of decline in elite sales.

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

Another option that the company could think about, is to expand towards the international markets without closing its domestic shops that adds to the major part of profits of the company. The benefits and drawbacks related to Alternative 3 are given listed below;

Pros:

• Minimizing competition danger
• Access to the world markets
• Enlarging customer base
• Big Profits
• Exploration of brand-new international markets.
• Increase in earnings from international markets.
• Income diversity.
• Action towards being a strong global brand.

Cons:

• Extension of problems associated with diversity.
• Distinctions in cultures might led to a failure of the brand especially in Asian countries.
• Low revenues at initial levels.
• Increase in marketing expenditures to get market share.



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