Recommendations of Reliance Petroleums Triple Option Convertible Debenture Issue (A) Case Solution

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Recommendations of Reliance Petroleums Triple Option Convertible Debenture Issue (A) Case Study Help

RecommendationsOn the basis of above internal and external analysis of the company together with the evaluation of numerous options, 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 regional profits and any wear and tear of its market position. By considering Alternative 3, the company might preserve its shop experience and brand name individuality. It could also think about alternative 2 that might permit the business to access the markets without any prospective investment. Although, the company could pursue alternative 1 which would make it possible for the company to focus on potential worldwide markets rather than the local markets however as the business is extremely based on the regional markets with 90% of its shops in the United States, there fore pursuing option 1 would result in the substantial decline in company's earnings. The company is recommended to think about alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of Reliance Petroleums Triple Option Convertible Debenture Issue (A) Case Help Stores

International SegmentsThe company has a long term market position in US which can not be created soon in the new markets. The alternative would help the business to broaden in global markets along with the removal of problems raised in its local markets related to its variety.

Pros:

• Exploration of brand-new worldwide markets.
• Increase in earnings from global markets.
• Removal of concerns related to variety.
• Revenue diversification.
• Action towards being a strong worldwide brand.

Cons:

• Loss of substantial revenues from the local markets.
• Boost in competitors.
• Distinctions in cultures might led to a failure of the brand particularly in Asian countries.
• Low earnings at initial levels.
• Boost in marketing expenditures to gain market share.

Alternative-2: Introduction of Click and Recommendations of Reliance Petroleums Triple Option Convertible Debenture Issue (A) Case Analysis Stores

Alternative 2 includes the intro of online market places through generating an appropriate company's site. With the increased trends towards online shopping, the online shops like Amazon, Alibaba and so on might position a serious danger to the market share of business. Furthermore, the competitors are moving towards click and Recommendations of Reliance Petroleums Triple Option Convertible Debenture Issue (A) Case Solution stores with Space presenting Piperline. This shift towards online markets could decrease the incomes for business. In this circumstance the business might think about presenting Click and Recommendations of Reliance Petroleums Triple Option Convertible Debenture Issue (A) Case Help shops. These shops with a low requirement of funds to settle would enable the company to reach worldwide markets, without ending its domestic shops. The pros and cons of option 2 are offered as follows;

Pros:

• Low financial investment
• Minimizing competition hazard
• Access to the world markets
• Enlarging consumer base
• Easy to handle
• Large Revenues
• Low Operating Costs
• Easy brand-new market entryway

Cons:

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

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

Another option that the company could consider, is to expand towards the international markets without closing its domestic shops that contributes to the huge part of revenues of the business. The benefits and drawbacks associated with Alternative 3 are provided below;

Pros:

• Decreasing competition danger
• Access to the world markets
• Enlarging customer base
• Big Incomes
• Expedition of new worldwide markets.
• Increase in earnings from worldwide markets.
• Income diversification.
• Step towards being a strong global brand.

Cons:

• Continuation of concerns associated with variety.
• Differences in cultures might led to a failure of the brand specifically in Asian countries.
• Low earnings at initial levels.
• Increase in marketing expenditures to acquire market share.



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