Recommendations of Merrill Lynchs It Initiatives Case Solution

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Recommendations of Merrill Lynchs It Initiatives Case Study Help

On the basis of above internal and external analysis of the company together with the examination of numerous options, the company is advised to consider alternative 3. As alternative 3 would permit the company to expand in international markets without any decrease in its local incomes and any deterioration of its market position. By considering Alternative 3, the business might maintain its store experience and brand originality. However, it could likewise think about alternative 2 that might permit the business to access the marketplaces with no prospective financial investment. Although, the company could pursue alternative 1 which would make it possible for the business to concentrate on possible global markets instead of the local markets however as the business is extremely based on the regional markets with 90% of its stores in the US, there fore pursuing option 1 would lead to the substantial decrease in company's revenue. The business is advised to think about alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of Merrill Lynchs It Initiatives Case Solution Stores

Expansion towards worldwide markets through opening brand-new shops in other Europe and Asian countries with closing domestic shops is although an excellent alternative for increasing the global presence of the business. However, the closing of domestic shops might extremely impact the earnings of the firm as above 90% of its stores are located locally and closing those shops would ultimately reduce the revenues of the firm. The business has a long term market position in US which can not be generated quickly in the new markets. The alternative would assist the business to broaden in international markets together with the removal of concerns raised in its regional markets associated with its variety. The benefits and drawbacks for Option 1 are listed below;

Pros:

• Expedition of new worldwide markets.
• Increase in profits from international markets.
• Elimination of issues associated with variety.
• Revenue diversification.
• Action towards being a strong worldwide brand.

Cons:

• Loss of extensive profits from the local markets.
• Increase in competitors.
• Distinctions in cultures might resulted in a failure of the brand especially in Asian countries.
• Low profits at initial levels.
• Increase in marketing expenses to acquire market share.

Alternative-2: Introduction of Click and Recommendations of Merrill Lynchs It Initiatives Case Solution Stores

Alternative 2 includes the intro of online market places through creating a proper company's website. With the increased patterns towards online shopping, the online shops like Amazon, Alibaba etc. might present a severe risk to the market share of business. Additionally, the competitors are moving towards click and Recommendations of Merrill Lynchs It Initiatives Case Solution stores with Space introducing Piperline. This shift towards online markets might decrease the revenues for company. In this circumstance the company might consider presenting Click and Recommendations of Merrill Lynchs It Initiatives Case Solution shops. These shops with a low requirement of funds to settle would enable the company to reach international markets, without ending its domestic stores. The benefits and drawbacks of option 2 are provided as follows;

Pros:

• Low investment
• Minimizing competition hazard
• Access to the world markets
• Increasing the size of customer base
• Easy to handle
• Large Earnings
• Low Operating Expense
• Easy brand-new market entrance

Cons:

• Threat to the marketplace position
• Elimination of brand Originality
• Elimination of the fantastic shop experience.
• Threat of decline in elite sales.

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

Another option that the business could think about, is to expand towards the global markets without closing its domestic shops that adds to the major part of earnings of the business. The advantages and disadvantages associated with Alternative 3 are provided listed below;

Pros:

• Reducing competition risk
• Access to the world markets
• Enlarging customer base
• Large Earnings
• Exploration of brand-new worldwide markets.
• Increase in earnings from global markets.
• Revenue diversification.
• Step towards being a strong global brand name.

Cons:

• Extension of concerns connected to variety.
• Distinctions in cultures might led to a failure of the brand particularly in Asian countries.
• Low incomes at initial levels.
• Boost in marketing expenditures to acquire market share.



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