Recommendations of The Hostile Bid For Red October Case Solution

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Recommendations of The Hostile Bid For Red October Case Study Help

On the basis of above internal and external analysis of the company along with the examination of various options, the company is advised to consider alternative 3. As alternative 3 would enable the business to broaden in international markets without any decrease in its local revenues and any wear and tear of its market position. The business could pursue alternative 1 which would enable the business to focus on prospective global markets rather than the local markets but as the business is extremely dependent on the local markets with 90% of its shops in the United States, there fore pursuing option 1 would result in the significant decrease in company's profits.

Aletrnative-1: Expanding International Brick and Recommendations of The Hostile Bid For Red October Case Analysis Stores

Growth towards international markets through opening brand-new stores in other Europe and Asian nations with closing domestic stores is although a good option for increasing the worldwide existence of the company. Nevertheless, the closing of domestic shops could highly affect the incomes of the company as above 90% of its stores are located locally and closing those shops would ultimately reduce the revenues of the firm. Moreover, the company has a long term market position in US which can not be generated quickly in the brand-new markets. The alternative would assist the business to expand in global markets along with the removal of problems raised in its regional markets associated with its variety. The benefits and drawbacks for Alternative 1 are noted below;

Pros:

• Expedition of new global markets.
• Increase in profits from worldwide markets.
• Removal of problems associated with variety.
• Income diversification.
• Step towards being a strong global brand.

Cons:

• Loss of extensive earnings from the regional markets.
• Boost in competitors.
• Distinctions in cultures might resulted in a failure of the brand name specifically in Asian countries.
• Low profits at initial levels.
• Boost in marketing expenditures to gain market share.

Alternative-2: Introduction of Click and Recommendations of The Hostile Bid For Red October Case Solution Stores

Alternative 2 includes the intro of online market places through producing a proper business's website. With the increased trends towards online shopping, the online shops like Amazon, Alibaba and so on might posture a severe danger to the market share of company. The competitors are moving towards click and Recommendations of The Hostile Bid For Red October Case Solution stores with Space presenting Piperline. This shift towards online markets could decrease the earnings for business. In this circumstance the company might think about presenting Click and Recommendations of The Hostile Bid For Red October Case Solution shops. These shops with a low requirement of funds to settle would enable the company to reach global markets, without ending its domestic shops. The benefits and drawbacks of option 2 are offered as follows;

Pros:

• Low financial investment
• Reducing competitors hazard
• Access to the world markets
• Enlarging customer base
• Easy to manage
• Big Revenues
• Low Operating Expense
• Easy new market entryway

Cons:

• Risk to the marketplace position
• Removal of brand Uniqueness
• Removal of the terrific shop experience.
• Threat 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 worldwide markets without closing its domestic shops that contributes to the huge part of profits of the company. The advantages and disadvantages connected to Alternative 3 are offered below;

Pros:

• Minimizing competitors danger
• Access to the world markets
• Enlarging customer base
• Big Incomes
• Exploration of brand-new worldwide markets.
• Boost in revenue from international markets.
• Earnings diversification.
• Step towards being a strong worldwide brand.

Cons:

• Extension of concerns associated with diversity.
• Differences in cultures could led to a failure of the brand specifically in Asian countries.
• Low earnings at initial levels.
• Boost in marketing expenses to gain market share.



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