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

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

On the basis of above internal and external analysis of the business along with the examination of different alternatives, the company is recommended to think about alternative 3. As alternative 3 would allow the business to expand in worldwide markets without any decrease in its regional profits and any degeneration of its market position. The business might pursue alternative 1 which would make it possible for the company to focus on possible international markets rather than the local markets however as the company is highly dependent on the local markets with 90% of its shops in the United States, there fore pursuing option 1 would result in the considerable decrease in business's revenue.

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

Growth towards worldwide markets through opening brand-new stores in other Europe and Asian nations with closing domestic shops is although an excellent option for increasing the global existence of the company. Nevertheless, the closing of domestic shops might highly affect the earnings of the firm as above 90% of its shops are located domestically and closing those shops would ultimately decrease the incomes of the firm. The company has a long term market position in US which can not be produced soon in the new markets. The choice would help the business to expand in international markets in addition to the elimination of concerns raised in its local markets associated with its variety. The benefits and drawbacks for Option 1 are noted below;

Pros:

• Exploration of brand-new worldwide markets.
• Increase in income from international markets.
• Elimination of concerns connected to diversity.
• Profits diversity.
• Action towards being a strong worldwide brand.

Cons:

• Loss of extensive revenues from the local markets.
• Boost in competition.
• Distinctions in cultures might led to a failure of the brand name especially in Asian countries.
• Low earnings at preliminary levels.
• Boost in marketing expenditures to gain market share.

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

Alternative 2 includes the intro of online market locations through producing a proper company's site. With the increased trends towards online shopping, the online shops like Amazon, Alibaba and so on could present a serious threat to the marketplace share of company. The rivals are moving towards click and Recommendations of Reliance Petroleums Triple Option Convertible Debenture Issue (B) Case Help stores with Gap introducing Piperline. This shift towards online markets could minimize the earnings for business. In this circumstance the company could think about introducing Click and Recommendations of Reliance Petroleums Triple Option Convertible Debenture Issue (B) Case Analysis shops. These stores with a low requirement of funds to settle would allow the business to reach global markets, without ending its domestic stores. The benefits and drawbacks of option 2 are given as follows;

Pros:

• Low financial investment
• Reducing competitors hazard
• Access to the world markets
• Enlarging customer base
• Easy to manage
• Large Earnings
• Low Operating Expense
• Easy new market entrance

Cons:

• Risk to the marketplace position
• Removal of brand Uniqueness
• Removal of the excellent store experience.
• Danger of decline in elite sales.

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

Another alternative that the business could consider, is to expand towards the global markets without closing its domestic shops that contributes to the major part of incomes of the company. The benefits and drawbacks connected to Alternative 3 are given below;

Pros:

• Decreasing competition threat
• Access to the world markets
• Increasing the size of consumer base
• Large Profits
• Exploration of new international markets.
• Boost in profits from worldwide markets.
• Income diversification.
• Step towards being a strong international brand.

Cons:

• Extension of problems related to variety.
• Differences in cultures could led to a failure of the brand specifically in Asian countries.
• Low profits at preliminary levels.
• Increase in marketing expenses to get market share.



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