Recommendations of The International Investor: Islamic Finance And The Equate Project Case Analysis

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Recommendations of The International Investor: Islamic Finance And The Equate Project Case Study Analysis

On the basis of above internal and external analysis of the company together with the examination of various options, the company is recommended to think about alternative 3. As alternative 3 would allow the company to expand in international markets with no reduction in its local earnings and any degeneration of its market position. By thinking about Alternative 3, the business could preserve its shop experience and brand name originality. Nevertheless, it could likewise consider alternative 2 that could enable the business to access the marketplaces with no possible financial investment. Although, the business might pursue alternative 1 which would make it possible for the business to focus on potential international markets instead of the regional markets however as the business is extremely dependent on the regional markets with 90% of its stores in the US, there fore pursuing alternative 1 would result in the significant decrease in company's profits. The company is suggested to consider alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of The International Investor: Islamic Finance And The Equate Project Case Analysis Stores

Growth towards worldwide markets through opening brand-new shops in other Europe and Asian countries with closing domestic shops is although a great alternative for increasing the worldwide presence of the business. However, the closing of domestic shops might extremely impact the earnings of the company as above 90% of its stores are located locally and closing those stores would ultimately decrease the revenues of the company. Furthermore, the company has a long term market position in United States which can not be generated soon in the new markets. The choice would assist the business to expand in global markets along with the elimination of problems raised in its regional markets associated with its diversity. The benefits and drawbacks for Option 1 are listed below;

Pros:

• Expedition of new worldwide markets.
• Increase in profits from international markets.
• Removal of problems related to variety.
• Income diversity.
• Action towards being a strong global brand name.

Cons:

• Loss of comprehensive revenues from the regional markets.
• Increase in competitors.
• Distinctions in cultures could led to a failure of the brand especially in Asian nations.
• Low profits at preliminary levels.
• Increase in marketing expenses to acquire market share.

Alternative-2: Introduction of Click and Recommendations of The International Investor: Islamic Finance And The Equate Project Case Analysis Stores

With the increased trends towards online shopping, the online shops like Amazon, Alibaba and so on might present an extreme danger to the market share of company. In this scenario the company could consider introducing Click and Recommendations of The International Investor: Islamic Finance And The Equate Project Case Analysis shops. These stores with a low requirement of funds to settle would enable the business to reach worldwide markets, without ending its domestic shops.

Pros:

• Low investment
• Lowering competition danger
• Access to the world markets
• Expanding consumer base
• Easy to manage
• Large Earnings
• Low Operating Expense
• Easy new market entrance

Cons:

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

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

Another alternative that the business could think about, is to expand towards the global markets without closing its domestic shops that adds to the major part of profits of the company. The advantages and disadvantages associated with Alternative 3 are given listed below;

Pros:

• Reducing competitors risk
• Access to the world markets
• Expanding consumer base
• Big Profits
• Expedition of new international markets.
• Boost in revenue from international markets.
• Earnings diversity.
• Action towards being a strong global brand.

Cons:

• Extension of problems associated with variety.
• Differences in cultures might caused a failure of the brand name specifically in Asian nations.
• Low revenues at preliminary levels.
• Boost in marketing expenditures to gain market share.



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