Recommendations of Bonnier Group: Swedens Leading Family Owned Business Case Help

Home >> Ibs Center For Management Research >> Bonnier Group: Swedens Leading Family Owned Business >> Recommendations

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

On the basis of above internal and external analysis of the business along with the examination of various alternatives, the company is recommended to think about alternative 3. As alternative 3 would enable the company to expand in worldwide markets without any reduction in its local incomes and any degeneration of its market position. The company might pursue alternative 1 which would make it possible for the company to focus on prospective global markets rather than the local markets but as the business is highly reliant on the local markets with 90% of its shops in the US, there fore pursuing option 1 would result in the substantial decrease in company's profits.

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

Growth towards worldwide markets through opening new stores in other Europe and Asian nations with closing domestic shops is although an excellent choice for increasing the international presence of the company. The closing of domestic shops could highly impact the earnings of the firm as above 90% of its shops are located domestically and closing those stores would ultimately reduce the incomes of the company. Furthermore, the company has a long term market position in US which can not be created quickly in the new markets. The choice would help the business to expand in global markets together with the removal of concerns raised in its local markets associated with its variety. The benefits and drawbacks for Alternative 1 are noted below;

Pros:

• Exploration of brand-new worldwide markets.
• Boost in earnings from global markets.
• Elimination of concerns related to variety.
• Profits diversification.
• Action towards being a strong global brand.

Cons:

• Loss of comprehensive incomes from the regional markets.
• Boost in competition.
• Distinctions in cultures could resulted in a failure of the brand name specifically in Asian nations.
• Low incomes at preliminary levels.
• Increase in marketing expenses to gain 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 intro of online market places through producing an appropriate company's website. With the increased patterns towards online shopping, the online stores like Amazon, Alibaba etc. could position a severe danger to the market share of business. The rivals are moving towards click and Recommendations of Bonnier Group: Swedens Leading Family Owned Business Case Analysis shops with Space presenting Piperline. This shift towards online markets might lower the incomes for business. In this situation the company could consider presenting Click and Recommendations of Bonnier Group: Swedens Leading Family Owned Business Case Solution shops. These stores with a low requirement of funds to settle would enable the business to reach worldwide markets, without ending its domestic stores. The benefits and drawbacks of option 2 are given as follows;

Pros:

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

Cons:

• Threat to the marketplace position
• Removal of brand name Uniqueness
• Removal of the great store experience.
• Danger of decrease in elite sales.

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

Another option that the company might consider, is to broaden towards the international markets without closing its domestic shops that adds to the major part of earnings of the business. The advantages and disadvantages connected to Alternative 3 are given below;

Pros:

• Decreasing competitors hazard
• Access to the world markets
• Increasing the size of customer base
• Large Revenues
• Expedition of new international markets.
• Increase in earnings from global markets.
• Income diversity.
• Step towards being a strong international brand name.

Cons:

• Continuation of problems associated with diversity.
• Distinctions in cultures might resulted in a failure of the brand name particularly in Asian nations.
• Low profits at initial levels.
• Increase in marketing expenditures to acquire market share.



This is sample work and not applicable to real case study. Please place the order on the website to get your own originally done case solution.