Recommendations of Lincoln Electric: Venturing Abroad Case Analysis

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Recommendations of Lincoln Electric: Venturing Abroad Case Study Help

On the basis of above internal and external analysis of the business along with the examination of different alternatives, the company is advised to consider alternative 3. As alternative 3 would enable the business to broaden in global markets without any reduction in its regional revenues and any deterioration of its market position. The business could pursue alternative 1 which would make it possible for the company to focus on prospective worldwide markets rather than the regional markets however as the business is extremely dependent on the local markets with 90% of its stores in the United States, there fore pursuing alternative 1 would result in the considerable decline in company's profits.

Aletrnative-1: Expanding International Brick and Recommendations of Lincoln Electric: Venturing Abroad Case Analysis Stores

Expansion towards international markets through opening brand-new shops in other Europe and Asian nations with closing domestic shops is although an excellent option for increasing the international presence of the business. However, the closing of domestic stores could highly affect the profits of the company as above 90% of its stores lie domestically and closing those shops would ultimately reduce the earnings of the firm. Additionally, the company has a long term market position in US which can not be generated quickly in the new markets. The option would assist the company to expand in worldwide markets together with the elimination of problems raised in its local markets related to its variety. The pros and Cons for Alternative 1 are listed below;

Pros:

• Expedition of brand-new international markets.
• Increase in earnings from worldwide markets.
• Removal of concerns connected to variety.
• Income diversity.
• Action towards being a strong global brand.

Cons:

• Loss of extensive earnings from the local markets.
• Boost in competition.
• Differences in cultures could resulted in a failure of the brand especially in Asian nations.
• Low profits at preliminary levels.
• Increase in marketing expenses to get market share.

Alternative-2: Introduction of Click and Recommendations of Lincoln Electric: Venturing Abroad Case Analysis Stores

With the increased patterns towards online shopping, the online shops like Amazon, Alibaba and so on might posture a serious hazard to the market share of business. In this situation the business could consider presenting Click and Recommendations of Lincoln Electric: Venturing Abroad Case Solution stores. These shops with a low requirement of funds to settle would make it possible for the company to reach worldwide markets, without ending its domestic shops.

Pros:

• Low financial investment
• Decreasing competitors risk
• Access to the world markets
• Increasing the size of consumer base
• Easy to handle
• Large Earnings
• Low Operating Expense
• Easy brand-new market entryway

Cons:

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

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

Another choice that the company might consider, is to expand towards the global markets without closing its domestic stores that contributes to the huge part of profits of the company. The advantages and disadvantages connected to Alternative 3 are provided below;

Pros:

• Minimizing competitors risk
• Access to the world markets
• Enlarging customer base
• Big Revenues
• Expedition of brand-new international markets.
• Boost in profits from global markets.
• Revenue diversity.
• Step towards being a strong international brand name.

Cons:

• Extension of concerns associated with variety.
• Distinctions in cultures could caused a failure of the brand specifically in Asian nations.
• Low revenues at preliminary levels.
• Increase in marketing expenses to gain market share.



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