Recommendations of Pantaloons Retail (India) Limited The Indian Retailing Giant Case Analysis

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Recommendations of Pantaloons Retail (India) Limited The Indian Retailing Giant Case Study Solution

On the basis of above internal and external analysis of the business in addition to the assessment of different alternatives, the company is recommended to think about alternative 3. As alternative 3 would enable the company to expand in global markets with no reduction in its local revenues and any wear and tear of its market position. By thinking about Alternative 3, the company might preserve its shop experience and brand name individuality. However, it could likewise think about alternative 2 that might permit the company to access the markets without any prospective financial investment. The business could pursue alternative 1 which would allow the business to focus on prospective global markets rather than the regional markets but as the business is highly dependent on the regional markets with 90% of its stores in the US, there fore pursuing alternative 1 would result in the considerable decrease in business's earnings. For that reason, the company is advised to consider alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of Pantaloons Retail (India) Limited The Indian Retailing Giant Case Analysis Stores

Growth towards international markets through opening new stores in other Europe and Asian countries with closing domestic shops is although a great option for increasing the global presence of the business. However, the closing of domestic shops could extremely affect the revenues of the firm as above 90% of its stores are located locally and closing those stores would eventually lower the revenues of the firm. The business has a long term market position in United States which can not be generated quickly in the new markets. The alternative would help the business to broaden in global markets in addition to the removal of issues raised in its regional markets related to its diversity. The pros and Cons for Alternative 1 are noted below;

Pros:

• Expedition of new international markets.
• Increase in profits from global markets.
• Removal of concerns connected to diversity.
• Income diversity.
• Action towards being a strong global brand.

Cons:

• Loss of extensive revenues from the local markets.
• Increase in competition.
• Distinctions in cultures could resulted in a failure of the brand name particularly in Asian countries.
• Low revenues at preliminary levels.
• Increase in marketing expenses to acquire market share.

Alternative-2: Introduction of Click and Recommendations of Pantaloons Retail (India) Limited The Indian Retailing Giant Case Analysis Stores

With the increased trends towards online shopping, the online stores like Amazon, Alibaba etc. might pose a severe risk to the market share of business. In this situation the business might think about introducing Click and Recommendations of Pantaloons Retail (India) Limited The Indian Retailing Giant Case Solution shops. These shops with a low requirement of funds to settle would allow the company to reach worldwide markets, without ending its domestic shops.

Pros:

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

Cons:

• Danger to the market position
• Removal of brand Originality
• Removal of the fantastic store experience.
• Danger of decline in elite sales.

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

Another alternative that the company could consider, is to expand towards the global markets without closing its domestic stores that adds to the huge part of incomes of the business. The pros and cons connected to Alternative 3 are given listed below;

Pros:

• Minimizing competition danger
• Access to the world markets
• Enlarging consumer base
• Large Profits
• Expedition of new international markets.
• Boost in income from international markets.
• Earnings diversification.
• Action towards being a strong international brand name.

Cons:

• Continuation of problems related to diversity.
• Differences in cultures might resulted in a failure of the brand name specifically in Asian countries.
• Low profits at initial levels.
• Boost in marketing expenditures to gain market share.



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