Recommendations of Reviving Hindustan Lever Limited Case Solution

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Recommendations of Reviving Hindustan Lever Limited Case Study Solution

On the basis of above internal and external analysis of the company along with the evaluation of different alternatives, the company is suggested to think about alternative 3. As alternative 3 would allow the company to expand in worldwide markets without any decrease in its regional earnings and any wear and tear of its market position. The business could pursue alternative 1 which would allow the company to focus on prospective worldwide markets rather than the local markets but as the business is highly reliant on the regional markets with 90% of its shops in the US, there fore pursuing option 1 would result in the substantial decrease in company's earnings.

Aletrnative-1: Expanding International Brick and Recommendations of Reviving Hindustan Lever Limited Case Analysis Stores

Growth towards worldwide markets through opening brand-new stores in other Europe and Asian nations with closing domestic shops is although a great choice for increasing the international existence of the business. Nevertheless, the closing of domestic shops could highly affect the incomes of the firm as above 90% of its shops are located locally and closing those stores would eventually minimize the incomes of the company. Moreover, the business has a long term market position in United States which can not be generated soon in the brand-new markets. The option would assist the company to broaden in international markets together with the removal of concerns raised in its local markets related to its diversity. The pros and Cons for Option 1 are listed below;

Pros:

• Expedition of brand-new international markets.
• Increase in revenue from global markets.
• Removal of problems related to variety.
• Income diversity.
• Action towards being a strong global brand name.

Cons:

• Loss of comprehensive profits from the regional markets.
• Boost in competitors.
• Distinctions in cultures could caused a failure of the brand specifically in Asian countries.
• Low revenues at preliminary levels.
• Boost in marketing expenditures to acquire market share.

Alternative-2: Introduction of Click and Recommendations of Reviving Hindustan Lever Limited Case Analysis Stores

With the increased trends towards online shopping, the online shops like Amazon, Alibaba etc. could posture an extreme threat to the market share of business. In this scenario the company might think about presenting Click and Recommendations of Reviving Hindustan Lever Limited Case Help stores. These stores with a low requirement of funds to settle would enable the company to reach global markets, without ending its domestic stores.

Pros:

• Low investment
• Minimizing competitors danger
• Access to the world markets
• Enlarging consumer base
• Easy to manage
• Big Revenues
• Low Operating Expense
• Easy new market entryway

Cons:

• Danger to the marketplace position
• Elimination of brand Individuality
• Removal of the terrific shop experience.
• Threat of decline in elite sales.

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

Another alternative that the business could think about, is to expand towards the international markets without closing its domestic stores that contributes to the huge part of profits of the business. The benefits and drawbacks connected to Alternative 3 are provided below;

Pros:

• Decreasing competitors danger
• Access to the world markets
• Increasing the size of customer base
• Big Profits
• Exploration of brand-new worldwide markets.
• Increase in revenue from global markets.
• Income diversification.
• Step towards being a strong international brand name.

Cons:

• Continuation of concerns associated with variety.
• Differences in cultures could led to a failure of the brand name particularly in Asian nations.
• Low earnings at preliminary levels.
• Increase in marketing expenses to get market share.



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