Recommendations of Merloni Group Case Help

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Recommendations of Merloni Group Case Study Help

On the basis of above internal and external analysis of the business along with the assessment of numerous alternatives, the business is suggested to consider alternative 3. As alternative 3 would permit the business to expand in global markets without any reduction in its regional revenues and any deterioration of its market position. The company could pursue alternative 1 which would allow the company to focus on potential international 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 option 1 would result in the substantial decline in company's revenue.

Aletrnative-1: Expanding International Brick and Recommendations of Merloni Group Case Solution Stores

Growth towards international markets through opening new shops in other Europe and Asian countries with closing domestic stores is although a great alternative for increasing the international presence of the business. The closing of domestic shops might extremely affect the earnings of the firm as above 90% of its stores are situated locally and closing those shops would ultimately reduce the profits of the firm. Furthermore, the business has a long term market position in United States which can not be generated soon in the brand-new markets. The option would assist the company to expand in global markets together with the elimination of problems raised in its local markets connected to its variety. The benefits and drawbacks for Alternative 1 are noted below;

Pros:

• Expedition of brand-new global markets.
• Increase in profits from worldwide markets.
• Elimination of concerns connected to variety.
• Earnings diversity.
• Step towards being a strong global brand name.

Cons:

• Loss of substantial earnings from the local markets.
• Boost in competition.
• Differences in cultures could led to a failure of the brand specifically in Asian countries.
• Low revenues at preliminary levels.
• Boost in marketing expenses to gain market share.

Alternative-2: Introduction of Click and Recommendations of Merloni Group Case Analysis Stores

Alternative 2 includes the intro of online market locations through generating a correct business's site. With the increased trends towards online shopping, the online stores like Amazon, Alibaba etc. might present a serious threat to the market share of business. Moreover, the rivals are shifting towards click and Recommendations of Merloni Group Case Analysis shops with Space presenting Piperline. This shift towards online markets might decrease the revenues for company. In this situation the business could consider introducing Click and Recommendations of Merloni Group Case Analysis stores. These shops with a low requirement of funds to settle would allow the business to reach worldwide markets, without ending its domestic stores. The pros and cons of option 2 are provided as follows;

Pros:

• Low financial investment
• Reducing competitors threat
• Access to the world markets
• Enlarging consumer base
• Easy to handle
• Large Revenues
• Low Operating Costs
• Easy new market entrance

Cons:

• Threat to the marketplace position
• Removal of brand name Individuality
• Removal of the excellent store experience.
• Threat of decrease in elite sales.

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

Another alternative that the company might 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 below;

Pros:

• Decreasing competitors risk
• Access to the world markets
• Enlarging customer base
• Big Profits
• Exploration of brand-new international markets.
• Increase in profits from international markets.
• Revenue diversity.
• Step towards being a strong worldwide brand.

Cons:

• Continuation of concerns related to diversity.
• Differences in cultures might led to a failure of the brand name particularly in Asian nations.
• Low incomes at initial levels.
• Increase in marketing expenses to get market share.



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