Recommendations of Bonnier Group Swedens Leading Family Owned Business Case Analysis

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Recommendations of Bonnier Group Swedens Leading Family Owned Business Case Study Solution

On the basis of above internal and external analysis of the company along with the evaluation of different alternatives, the business is suggested to consider alternative 3. As alternative 3 would permit the company to expand in global markets without any reduction in its local earnings and any wear and tear of its market position. The company might pursue alternative 1 which would make it possible for the company to focus on potential global 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 decrease in business's revenue.

Aletrnative-1: Expanding International Brick and Recommendations of Bonnier Group Swedens Leading Family Owned Business Case Help Stores

Expansion towards international markets through opening brand-new stores in other Europe and Asian countries with closing domestic stores is although a good alternative for increasing the global existence of the company. The closing of domestic stores could extremely affect the earnings of the firm as above 90% of its stores are situated locally and closing those stores would eventually decrease the earnings of the company. Additionally, the company has a long term market position in United States which can not be created quickly 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 diversity. The benefits and drawbacks for Alternative 1 are listed below;

Pros:

• Expedition of new international markets.
• Boost in earnings from international markets.
• Elimination of issues associated with variety.
• Revenue diversity.
• Action towards being a strong international brand.

Cons:

• Loss of extensive incomes from the local markets.
• Boost in competition.
• Distinctions in cultures could caused a failure of the brand specifically in Asian nations.
• Low profits at initial levels.
• Increase in marketing expenditures to get market share.

Alternative-2: Introduction of Click and Recommendations of Bonnier Group Swedens Leading Family Owned Business Case Analysis Stores

Alternative 2 consists of the introduction of online market places through generating a proper business's site. With the increased patterns towards online shopping, the online stores like Amazon, Alibaba and so on could present a severe threat to the marketplace share of business. Additionally, the rivals are moving towards click and Recommendations of Bonnier Group Swedens Leading Family Owned Business Case Help stores with Gap introducing Piperline. This shift towards online markets could lower the incomes for company. In this scenario the business could consider presenting Click and Recommendations of Bonnier Group Swedens Leading Family Owned Business Case Solution shops. These shops with a low requirement of funds to settle would enable the company to reach global markets, without ending its domestic shops. The advantages and disadvantages of alternative 2 are offered as follows;

Pros:

• Low financial investment
• Decreasing competitors threat
• Access to the world markets
• Expanding customer base
• Easy to manage
• Big Profits
• Low Operating Expense
• Easy new market entryway

Cons:

• Hazard to the market position
• Elimination of brand Individuality
• Elimination of the terrific store experience.
• Threat 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 broaden towards the global markets without closing its domestic stores that adds to the major part of earnings of the company. The pros and cons associated with Alternative 3 are given below;

Pros:

• Minimizing competition danger
• Access to the world markets
• Enlarging consumer base
• Big Revenues
• Expedition of new global markets.
• Increase in earnings from international markets.
• Earnings diversity.
• Action towards being a strong global brand name.

Cons:

• Extension of concerns related to variety.
• Differences in cultures might led to a failure of the brand name specifically in Asian countries.
• Low profits at initial levels.
• Boost in marketing expenses to get market share.



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