Recommendations of Usg Corporation Case Solution

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Recommendations of Usg Corporation Case Study Solution

On the basis of above internal and external analysis of the business along with the assessment of numerous alternatives, the company is recommended to think about alternative 3. As alternative 3 would allow the company to expand in global markets without any decrease in its regional incomes and any wear and tear of its market position. The business could pursue alternative 1 which would make it possible for the company to focus on potential worldwide markets rather than the local markets however as the business is highly reliant on the regional markets with 90% of its shops in the US, there fore pursuing option 1 would result in the substantial decline in business's profits.

Aletrnative-1: Expanding International Brick and Recommendations of Usg Corporation Case Help Stores

The company has a long term market position in US which can not be generated soon in the brand-new markets. The alternative would help the company to broaden in worldwide markets along with the removal of problems raised in its local markets related to its diversity.

Pros:

• Expedition of new global markets.
• Boost in profits from global markets.
• Elimination of concerns associated with diversity.
• Income diversity.
• Step towards being a strong global brand name.

Cons:

• Loss of substantial incomes from the regional markets.
• Boost in competitors.
• Differences in cultures might caused a failure of the brand name particularly in Asian nations.
• Low profits at preliminary levels.
• Increase in marketing expenses to get market share.

Alternative-2: Introduction of Click and Recommendations of Usg Corporation Case Help Stores

Alternative 2 consists of the introduction of online market locations through generating a correct company's website. With the increased trends towards online shopping, the online shops like Amazon, Alibaba etc. might pose an extreme danger to the market share of business. Moreover, the rivals are shifting towards click and Recommendations of Usg Corporation Case Help shops with Space introducing Piperline. This shift towards online markets could minimize the profits for business. In this scenario the company could consider presenting Click and Recommendations of Usg Corporation Case Help shops. These stores with a low requirement of funds to settle would make it possible for the company to reach global markets, without ending its domestic stores. The benefits and drawbacks of option 2 are given as follows;

Pros:

• Low financial investment
• Minimizing competition threat
• Access to the world markets
• Increasing the size of customer base
• Easy to manage
• Big Incomes
• Low Operating Costs
• Easy brand-new market entrance

Cons:

• Threat to the marketplace position
• Removal of brand name Originality
• Removal of the fantastic shop experience.
• Risk of decrease in elite sales.

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

Another alternative that the company could think about, is to expand towards the worldwide markets without closing its domestic shops that adds to the major part of incomes of the company. The pros and cons related to Alternative 3 are provided below;

Pros:

• Minimizing competitors danger
• Access to the world markets
• Expanding customer base
• Big Revenues
• Expedition of new global markets.
• Increase in profits from worldwide markets.
• Income diversification.
• Action towards being a strong worldwide brand name.

Cons:

• Continuation of issues associated with variety.
• Differences in cultures could caused a failure of the brand name specifically in Asian countries.
• Low revenues at initial levels.
• Increase in marketing expenditures to get market share.



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