Recommendations of Fabio Rosa: Bridging The Electricity Divide In Brazil Case Help

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Recommendations of Fabio Rosa: Bridging The Electricity Divide In Brazil Case Study Solution

On the basis of above internal and external analysis of the company along with the evaluation of different options, the business is suggested to think about alternative 3. As alternative 3 would enable the company to expand in international markets without any decrease in its local earnings and any wear and tear of its market position. The business might pursue alternative 1 which would make it possible for the business to focus on potential global markets rather than the regional markets however as the business is highly dependent on the local markets with 90% of its shops in the United States, there fore pursuing alternative 1 would result in the substantial decrease in business's profits.

Aletrnative-1: Expanding International Brick and Recommendations of Fabio Rosa: Bridging The Electricity Divide In Brazil Case Analysis Stores

Growth towards international markets through opening new shops in other Europe and Asian countries with closing domestic stores is although a good choice for increasing the worldwide existence of the company. However, the closing of domestic shops could extremely affect the profits of the firm as above 90% of its shops lie domestically and closing those shops would ultimately decrease the incomes of the company. The company has a long term market position in United States which can not be generated quickly in the brand-new markets. The alternative would help the company to expand in worldwide markets together with the removal of problems raised in its regional markets associated with its variety. The advantages and disadvantages for Alternative 1 are noted below;

Pros:

• Expedition of new global markets.
• Boost in earnings from global markets.
• Elimination of issues connected to diversity.
• Earnings diversity.
• Action towards being a strong worldwide brand name.

Cons:

• Loss of extensive revenues from the regional markets.
• Boost in competition.
• Differences in cultures could caused a failure of the brand specifically in Asian nations.
• Low incomes at preliminary levels.
• Boost in marketing expenses to get market share.

Alternative-2: Introduction of Click and Recommendations of Fabio Rosa: Bridging The Electricity Divide In Brazil Case Solution Stores

With the increased patterns towards online shopping, the online shops like Amazon, Alibaba and so on might posture an extreme danger to the market share of company. In this circumstance the company could think about presenting Click and Recommendations of Fabio Rosa: Bridging The Electricity Divide In Brazil Case Solution stores. These shops with a low requirement of funds to settle would allow the company to reach global markets, without ending its domestic stores.

Pros:

• Low investment
• Lowering competitors threat
• Access to the world markets
• Increasing the size of customer base
• Easy to manage
• Big Earnings
• Low Operating Costs
• Easy new market entrance

Cons:

• Threat to the market position
• Elimination of brand name Originality
• Removal of the terrific store experience.
• Risk of decrease in elite sales.

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

Another option that the business might think about, is to broaden towards the worldwide markets without closing its domestic shops that contributes to the major part of profits of the company. The benefits and drawbacks connected to Alternative 3 are provided below;

Pros:

• Lowering competition threat
• Access to the world markets
• Increasing the size of consumer base
• Big Earnings
• Exploration of new global markets.
• Boost in earnings from international markets.
• Earnings diversity.
• Step towards being a strong international brand.

Cons:

• Continuation of issues connected to diversity.
• Distinctions in cultures might led to a failure of the brand especially in Asian countries.
• Low revenues at initial levels.
• Boost in marketing expenses to get market share.



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