Recommendations of Kent Chemical: Organizing For International Growth Case Solution

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Recommendations of Kent Chemical: Organizing For International Growth Case Study Analysis

On the basis of above internal and external analysis of the business along with the examination of different 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 incomes and any wear and tear of its market position. The company might pursue alternative 1 which would enable the business to focus on prospective global markets rather than the regional markets however as the business is extremely reliant on the regional markets with 90% of its stores in the United States, there fore pursuing alternative 1 would result in the significant decline in business's revenue.

Aletrnative-1: Expanding International Brick and Recommendations of Kent Chemical: Organizing For International Growth Case Solution Stores

Expansion towards worldwide markets through opening brand-new stores in other Europe and Asian countries with closing domestic shops is although a great alternative for increasing the worldwide existence of the business. The closing of domestic shops might highly affect the profits of the firm as above 90% of its shops are located locally and closing those stores would ultimately minimize the earnings of the firm. Additionally, the company has a long term market position in United States which can not be generated soon in the brand-new markets. The alternative would assist the company to expand in international markets in addition to the elimination of issues raised in its local markets related to its variety. The benefits and drawbacks for Option 1 are noted below;

Pros:

• Exploration of new international markets.
• Boost in earnings from global markets.
• Elimination of concerns related to variety.
• Profits diversification.
• Step towards being a strong global brand name.

Cons:

• Loss of comprehensive incomes from the local markets.
• Increase in competition.
• Differences in cultures could resulted in a failure of the brand name especially in Asian countries.
• Low earnings at preliminary levels.
• Increase in marketing expenses to gain market share.

Alternative-2: Introduction of Click and Recommendations of Kent Chemical: Organizing For International Growth Case Analysis Stores

With the increased patterns towards online shopping, the online stores like Amazon, Alibaba and so on might posture a serious danger to the market share of company. In this situation the business might think about introducing Click and Recommendations of Kent Chemical: Organizing For International Growth Case Solution shops. These stores with a low requirement of funds to settle would make it possible for the business to reach worldwide markets, without ending its domestic shops.

Pros:

• Low investment
• Reducing competitors risk
• Access to the world markets
• Enlarging consumer base
• Easy to handle
• Large Profits
• Low Operating Expense
• Easy brand-new market entrance

Cons:

• Hazard to the market position
• Removal of brand name Uniqueness
• Elimination of the terrific store experience.
• Danger of decline in elite sales.

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

Another alternative that the business might think about, is to expand towards the worldwide markets without closing its domestic shops that contributes to the huge part of incomes of the company. The pros and cons related to Alternative 3 are given listed below;

Pros:

• Decreasing competitors threat
• Access to the world markets
• Expanding customer base
• Big Profits
• Exploration of brand-new global markets.
• Increase in income from international markets.
• Profits diversity.
• Step towards being a strong international brand.

Cons:

• Extension of problems associated with diversity.
• Distinctions in cultures could caused a failure of the brand especially in Asian countries.
• Low revenues at preliminary levels.
• Boost in marketing expenditures to gain market share.



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