Recommendations of Cemexs Acquisition Strategy: The Acquisition Of Rinker Group Case Analysis

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Recommendations of Cemexs Acquisition Strategy: The Acquisition Of Rinker Group Case Study Solution

On the basis of above internal and external analysis of the business along with the assessment of different alternatives, the business is recommended to consider alternative 3. As alternative 3 would allow the company to broaden in global markets without any decrease in its regional profits and any degeneration of its market position. The business might pursue alternative 1 which would allow the company to focus on potential global markets rather than the regional markets however as the company is extremely dependent on the regional markets with 90% of its stores in the United States, there fore pursuing alternative 1 would result in the substantial decrease in company's earnings.

Aletrnative-1: Expanding International Brick and Recommendations of Cemexs Acquisition Strategy: The Acquisition Of Rinker Group Case Analysis Stores

Growth towards worldwide markets through opening 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. However, the closing of domestic shops could highly impact the profits of the company as above 90% of its stores are located locally and closing those shops would ultimately minimize the incomes of the firm. Furthermore, the business has a long term market position in US which can not be produced soon in the brand-new markets. The option would assist the company to expand in global markets together with the removal of issues raised in its regional markets associated with its diversity. The pros and Cons for Option 1 are noted below;

Pros:

• Exploration of brand-new global markets.
• Boost in revenue from worldwide markets.
• Removal of concerns connected to diversity.
• Income diversity.
• Action towards being a strong global brand.

Cons:

• Loss of comprehensive revenues from the local markets.
• Increase in competition.
• Distinctions in cultures could caused a failure of the brand name particularly in Asian nations.
• Low earnings at initial levels.
• Boost in marketing expenses to gain market share.

Alternative-2: Introduction of Click and Recommendations of Cemexs Acquisition Strategy: The Acquisition Of Rinker Group Case Help Stores

Alternative 2 includes the introduction of online market places through producing a correct business's site. With the increased trends towards online shopping, the online stores like Amazon, Alibaba and so on might present a severe threat to the marketplace share of business. The rivals are shifting towards click and Recommendations of Cemexs Acquisition Strategy: The Acquisition Of Rinker Group Case Help shops with Gap introducing Piperline. This shift towards online markets might minimize the earnings for company. In this situation the business might consider presenting Click and Recommendations of Cemexs Acquisition Strategy: The Acquisition Of Rinker Group Case Solution shops. These stores with a low requirement of funds to settle would allow the business to reach international markets, without ending its domestic shops. The pros and cons of alternative 2 are offered as follows;

Pros:

• Low investment
• Lowering competitors danger
• Access to the world markets
• Enlarging customer base
• Easy to manage
• Big Incomes
• Low Operating Costs
• Easy brand-new market entrance

Cons:

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

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

Another option that the company could consider, is to broaden towards the global markets without closing its domestic stores that adds to the major part of earnings of the business. The benefits and drawbacks connected to Alternative 3 are given below;

Pros:

• Lowering competitors threat
• Access to the world markets
• Increasing the size of customer base
• Large Profits
• Expedition of new global markets.
• Boost in earnings from worldwide markets.
• Earnings diversification.
• Step towards being a strong international brand name.

Cons:

• Extension of issues associated with variety.
• Distinctions in cultures could led to a failure of the brand name especially in Asian nations.
• Low profits at preliminary levels.
• Increase in marketing expenditures to acquire market share.



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