Recommendations of Hp-Compaq: A Failed Merger Case Analysis

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Recommendations of Hp-Compaq: A Failed Merger Case Study Help

RecommendationsOn the basis of above internal and external analysis of the company along with the assessment of numerous alternatives, the business is advised to think about alternative 3. As alternative 3 would permit the company to expand in international markets without any decrease in its local revenues and any deterioration of its market position. By thinking about Alternative 3, the company might preserve its store experience and brand individuality. However, it could also consider alternative 2 that could permit the business to access the marketplaces with no potential investment. Although, the company could pursue alternative 1 which would allow the company to focus on prospective global markets rather than the local markets however as the business is extremely based on the local markets with 90% of its stores in the US, there fore pursuing option 1 would lead to the substantial decline in company's earnings. The company is recommended to consider alternative 3.

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

International SegmentsGrowth 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 worldwide existence of the business. The closing of domestic shops could highly impact the incomes of the company as above 90% of its stores are situated domestically and closing those shops would ultimately reduce the revenues of the company. The company has a long term market position in US which can not be generated soon in the new markets. The choice would assist the company to broaden in international markets along with the removal of issues raised in its regional markets related to its variety. The pros and Cons for Alternative 1 are noted below;

Pros:

• Expedition of new worldwide markets.
• Boost in profits from international markets.
• Removal of problems related to diversity.
• Profits diversification.
• Step towards being a strong international brand name.

Cons:

• Loss of extensive incomes from the regional markets.
• Boost in competition.
• Differences in cultures might resulted in a failure of the brand specifically in Asian countries.
• Low earnings at preliminary levels.
• Increase in marketing expenses to gain market share.

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

Alternative 2 consists of the introduction of online market places through producing a correct company's site. With the increased patterns towards online shopping, the online stores like Amazon, Alibaba etc. could present a serious threat to the market share of company. Moreover, the rivals are moving towards click and Recommendations of Hp-Compaq: A Failed Merger Case Analysis stores with Space introducing Piperline. This shift towards online markets could reduce the profits for company. In this circumstance the business might consider introducing Click and Recommendations of Hp-Compaq: A Failed Merger Case Help stores. These shops with a low requirement of funds to settle would allow the company to reach international markets, without ending its domestic stores. The pros and cons of option 2 are provided as follows;

Pros:

• Low financial investment
• Lowering competition danger
• Access to the world markets
• Expanding consumer base
• Easy to manage
• Large Revenues
• Low Operating Expense
• Easy brand-new market entryway

Cons:

• Hazard to the marketplace position
• Elimination of brand Originality
• Removal of the terrific store experience.
• Danger of decrease in elite sales.

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

Another alternative that the business could consider, is to broaden towards the worldwide markets without closing its domestic stores that contributes to the huge part of earnings of the company. The pros and cons connected to Alternative 3 are provided listed below;

Pros:

• Minimizing competitors risk
• Access to the world markets
• Enlarging consumer base
• Big Earnings
• Expedition of new worldwide markets.
• Increase in profits from international markets.
• Profits diversity.
• Step towards being a strong international brand.

Cons:

• Extension of issues related to variety.
• Differences in cultures might led to a failure of the brand name particularly in Asian nations.
• Low incomes at preliminary levels.
• Increase in marketing expenditures to get market share.



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