Recommendations of The Acquisition Of Consolidated Rail Corporation (A) And (B) Case Solution

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Recommendations of The Acquisition Of Consolidated Rail Corporation (A) And (B) Case Study Analysis

On the basis of above internal and external analysis of the company together with the evaluation of numerous alternatives, the company is advised to consider alternative 3. As alternative 3 would allow the company to broaden in global markets without any decrease in its regional profits and any deterioration of its market position. By considering Alternative 3, the company could keep its shop experience and brand name uniqueness. Nevertheless, it could also consider alternative 2 that might permit the company to access the marketplaces with no prospective investment. Although, the business could pursue alternative 1 which would enable the company to focus on potential international markets rather than the local markets but as the company is highly dependent on the regional markets with 90% of its stores in the United States, there fore pursuing option 1 would lead to the considerable decrease in business's profits. For that reason, the business is advised to think about alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of The Acquisition Of Consolidated Rail Corporation (A) And (B) Case Solution Stores

The business has a long term market position in US which can not be generated quickly in the new markets. The option would assist the company to expand in international markets along with the removal of concerns raised in its local markets related to its diversity.

Pros:

• Exploration of new worldwide markets.
• Increase in revenue from global markets.
• Elimination of issues connected to variety.
• Earnings diversity.
• Step towards being a strong worldwide brand name.

Cons:

• Loss of comprehensive incomes from the local markets.
• Increase in competitors.
• Distinctions in cultures could led to a failure of the brand name specifically in Asian nations.
• Low revenues at preliminary levels.
• Increase in marketing expenses to get market share.

Alternative-2: Introduction of Click and Recommendations of The Acquisition Of Consolidated Rail Corporation (A) And (B) Case Analysis Stores

Alternative 2 consists of the introduction of online market places through creating an appropriate business's site. With the increased trends towards online shopping, the online shops like Amazon, Alibaba and so on might position an extreme threat to the market share of company. Furthermore, the rivals are moving towards click and Recommendations of The Acquisition Of Consolidated Rail Corporation (A) And (B) Case Analysis shops with Gap presenting Piperline. This shift towards online markets might reduce the revenues for company. In this scenario the business could consider presenting Click and Recommendations of The Acquisition Of Consolidated Rail Corporation (A) And (B) Case Analysis shops. These shops with a low requirement of funds to settle would make it possible for the company to reach worldwide markets, without ending its domestic shops. The benefits and drawbacks of option 2 are provided as follows;

Pros:

• Low investment
• Lowering competitors threat
• Access to the world markets
• Increasing the size of consumer base
• Easy to handle
• Large Incomes
• Low Operating Costs
• Easy new market entryway

Cons:

• Risk to the market position
• Elimination of brand Originality
• Elimination of the great shop experience.
• Risk of decrease in elite sales.

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

Another option that the company could consider, is to expand towards the worldwide markets without closing its domestic stores that adds to the major part of profits of the business. The pros and cons connected to Alternative 3 are offered below;

Pros:

• Reducing competitors risk
• Access to the world markets
• Increasing the size of consumer base
• Big Earnings
• Expedition of brand-new worldwide markets.
• Increase in earnings from worldwide markets.
• Profits diversity.
• Action towards being a strong worldwide brand name.

Cons:

• Extension of problems related to variety.
• Differences in cultures might led to a failure of the brand especially in Asian countries.
• Low revenues at preliminary levels.
• Boost in marketing expenditures to get market share.



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