Recommendations of Hindalcos Acquisition Of Novelis Case Solution

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Recommendations of Hindalcos Acquisition Of Novelis Case Study Help

On the basis of above internal and external analysis of the company along with the examination of various alternatives, the company is recommended to think about alternative 3. As alternative 3 would permit the business to broaden in international markets without any decrease in its regional 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 possible worldwide markets rather than the local markets but as the company is highly dependent on the regional markets with 90% of its stores in the US, there fore pursuing option 1 would result in the significant decline in business's profits.

Aletrnative-1: Expanding International Brick and Recommendations of Hindalcos Acquisition Of Novelis Case Solution Stores

Growth towards international markets through opening brand-new stores in other Europe and Asian countries with closing domestic stores is although a good option for increasing the worldwide existence of the company. Nevertheless, the closing of domestic shops could extremely impact the revenues of the firm as above 90% of its stores are located domestically and closing those stores would eventually minimize the revenues of the company. Furthermore, the company has a long term market position in US which can not be created soon in the brand-new markets. The option would help the company to expand in worldwide markets in addition to the elimination of problems raised in its regional markets related to its diversity. The pros and Cons for Alternative 1 are noted below;

Pros:

• Expedition of brand-new worldwide markets.
• Boost in profits from worldwide markets.
• Removal of problems connected to diversity.
• Profits diversity.
• Action towards being a strong international brand name.

Cons:

• Loss of comprehensive earnings from the local markets.
• Boost in competitors.
• Differences in cultures might caused a failure of the brand name especially in Asian nations.
• Low revenues at initial levels.
• Boost in marketing expenses to get market share.

Alternative-2: Introduction of Click and Recommendations of Hindalcos Acquisition Of Novelis Case Analysis Stores

Alternative 2 includes the intro of online market locations through generating an appropriate company's website. With the increased trends towards online shopping, the online stores like Amazon, Alibaba and so on might pose an extreme risk to the market share of company. Additionally, the rivals are moving towards click and Recommendations of Hindalcos Acquisition Of Novelis Case Analysis stores with Gap presenting Piperline. This shift towards online markets might minimize the profits for company. In this circumstance the company might think about presenting Click and Recommendations of Hindalcos Acquisition Of Novelis Case Analysis stores. These shops with a low requirement of funds to settle would make it possible for the business to reach global markets, without ending its domestic shops. The benefits and drawbacks of option 2 are offered as follows;

Pros:

• Low investment
• Reducing competition hazard
• Access to the world markets
• Expanding consumer base
• Easy to handle
• Big Profits
• Low Operating Costs
• Easy brand-new market entryway

Cons:

• Risk to the market position
• Removal of brand name Individuality
• Removal of the terrific shop experience.
• Threat of decline in elite sales.

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

Another alternative that the business could think about, is to expand towards the worldwide markets without closing its domestic shops that adds to the major part of profits of the business. The pros and cons connected to Alternative 3 are offered below;

Pros:

• Minimizing competitors danger
• Access to the world markets
• Increasing the size of customer base
• Large Earnings
• Exploration of new international markets.
• Increase in profits from global markets.
• Profits diversity.
• Action towards being a strong worldwide brand name.

Cons:

• Continuation of issues associated with diversity.
• Distinctions in cultures could resulted in a failure of the brand name especially in Asian countries.
• Low revenues at initial levels.
• Boost in marketing expenses to gain market share.



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