Recommendations of Hp-Compaq A Failed Merger Case Help

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Recommendations of Hp-Compaq A Failed Merger Case Study Help

On the basis of above internal and external analysis of the company together with the examination of different alternatives, the business is advised to consider alternative 3. As alternative 3 would allow the business to broaden in international markets with no decrease in its regional earnings and any wear and tear of its market position. By thinking about Alternative 3, the business might keep its store experience and brand individuality. It could also think about alternative 2 that could allow the business to access the markets without any potential financial investment. The company might pursue alternative 1 which would make it possible for the business to focus on potential international markets rather than the local markets but as the business is highly dependent on the local markets with 90% of its stores in the United States, there fore pursuing alternative 1 would result in the considerable decrease in business's profits. Therefore, the business is suggested to consider alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of Hp-Compaq A Failed Merger Case Solution Stores

Growth towards international markets through opening brand-new stores in other Europe and Asian countries with closing domestic stores is although an excellent choice for increasing the global presence of the company. Nevertheless, the closing of domestic stores might highly impact the earnings of the company as above 90% of its shops lie locally and closing those shops would eventually minimize the incomes of the firm. The business has a long term market position in US which can not be produced soon in the new markets. The choice would help the company to broaden in international markets together with the elimination of problems raised in its regional markets connected to its variety. The pros and Cons for Alternative 1 are noted below;

Pros:

• Exploration of brand-new worldwide markets.
• Boost in profits from international markets.
• Elimination of problems associated with variety.
• Profits diversification.
• Action towards being a strong international brand name.

Cons:

• Loss of comprehensive profits from the local markets.
• Boost in competitors.
• Distinctions in cultures might led to a failure of the brand name especially in Asian countries.
• Low earnings at initial levels.
• Increase in marketing expenditures to gain market share.

Alternative-2: Introduction of Click and Recommendations of Hp-Compaq A Failed Merger Case Help Stores

With the increased trends towards online shopping, the online shops like Amazon, Alibaba etc. could posture a serious threat to the market share of company. In this situation the company could think about presenting Click and Recommendations of Hp-Compaq A Failed Merger Case Help shops. These shops with a low requirement of funds to settle would allow the business to reach global markets, without ending its domestic shops.

Pros:

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

Cons:

• Hazard to the marketplace position
• Elimination of brand name Individuality
• Removal of the excellent store experience.
• Risk of decrease in elite sales.

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

Another choice that the business could consider, is to broaden towards the worldwide markets without closing its domestic shops that contributes to the huge part of earnings of the company. The benefits and drawbacks related to Alternative 3 are offered below;

Pros:

• Reducing competitors risk
• Access to the world markets
• Increasing the size of consumer base
• Large Profits
• Expedition of new international markets.
• Boost in profits from international markets.
• Profits diversity.
• Step towards being a strong international brand name.

Cons:

• Continuation of issues associated with variety.
• Distinctions in cultures might caused a failure of the brand name particularly in Asian countries.
• Low incomes at preliminary levels.
• Boost in marketing expenses to acquire market share.



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