Recommendations of The Kashagan Production Sharing Agreement (Psa) Case Analysis

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Recommendations of The Kashagan Production Sharing Agreement (Psa) Case Study Help

On the basis of above internal and external analysis of the business along with the assessment of different alternatives, the business is suggested to think about alternative 3. As alternative 3 would permit the business to broaden in worldwide markets without any decrease in its local revenues and any deterioration of its market position. The business might pursue alternative 1 which would enable the business to focus on prospective global markets rather than the local markets however as the business is extremely reliant on the regional markets with 90% of its shops in the United States, there fore pursuing option 1 would result in the considerable decrease in business's revenue.

Aletrnative-1: Expanding International Brick and Recommendations of The Kashagan Production Sharing Agreement (Psa) 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 alternative would assist the company to broaden in international markets along with the removal of problems raised in its regional markets related to its variety.

Pros:

• Exploration of new international markets.
• Boost in profits from worldwide markets.
• Removal of concerns related to diversity.
• Earnings diversity.
• Action towards being a strong global brand.

Cons:

• Loss of extensive revenues from the local markets.
• Increase in competitors.
• Distinctions in cultures might resulted in a failure of the brand name especially in Asian nations.
• Low earnings at initial levels.
• Boost in marketing expenses to get market share.

Alternative-2: Introduction of Click and Recommendations of The Kashagan Production Sharing Agreement (Psa) Case Help Stores

With the increased trends towards online shopping, the online shops like Amazon, Alibaba etc. might position an extreme threat to the market share of company. In this scenario the company might consider introducing Click and Recommendations of The Kashagan Production Sharing Agreement (Psa) Case Help shops. These shops with a low requirement of funds to settle would enable the company to reach global markets, without ending its domestic stores.

Pros:

• Low financial investment
• Reducing competitors hazard
• Access to the world markets
• Enlarging consumer base
• Easy to manage
• Big Profits
• Low Operating Costs
• Easy new market entrance

Cons:

• Hazard to the market position
• Removal of brand Individuality
• 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 company could consider, is to expand towards the international markets without closing its domestic shops that contributes to the major part of earnings of the company. The benefits and drawbacks connected to Alternative 3 are provided listed below;

Pros:

• Minimizing competition threat
• Access to the world markets
• Increasing the size of customer base
• Large Revenues
• Exploration of new worldwide markets.
• Increase in revenue from international markets.
• Earnings diversification.
• Action towards being a strong international brand name.

Cons:

• Extension of problems associated with diversity.
• 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 acquire market share.



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