Recommendations of Royal Dutch Shell Oil Reserves Controversy Case Solution

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Recommendations of Royal Dutch Shell Oil Reserves Controversy Case Study Solution

On the basis of above internal and external analysis of the company along with the examination of various options, the company is recommended to think about alternative 3. As alternative 3 would permit the company to broaden in international markets without any reduction in its local earnings and any degeneration of its market position. The business might pursue alternative 1 which would enable the business to focus on potential worldwide markets rather than the regional markets however as the business is extremely reliant 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 income.

Aletrnative-1: Expanding International Brick and Recommendations of Royal Dutch Shell Oil Reserves Controversy Case Solution Stores

The business has a long term market position in US which can not be produced quickly in the brand-new markets. The choice would help the business to expand in international markets along with the removal of problems raised in its regional markets related to its variety.

Pros:

• Expedition of new global markets.
• Boost in revenue from international markets.
• Elimination of problems associated with diversity.
• Income diversity.
• Step towards being a strong global brand name.

Cons:

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

Alternative-2: Introduction of Click and Recommendations of Royal Dutch Shell Oil Reserves Controversy Case Solution Stores

Alternative 2 includes the introduction of online market locations through producing a correct company's website. With the increased trends towards online shopping, the online shops like Amazon, Alibaba etc. could position an extreme danger to the market share of business. Furthermore, the competitors are moving towards click and Recommendations of Royal Dutch Shell Oil Reserves Controversy Case Analysis shops with Gap introducing Piperline. This shift towards online markets might reduce the earnings for business. In this situation the company might think about introducing Click and Recommendations of Royal Dutch Shell Oil Reserves Controversy Case Analysis 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 given as follows;

Pros:

• Low investment
• Reducing competitors hazard
• Access to the world markets
• Expanding customer base
• Easy to manage
• Big Profits
• Low Operating Expense
• Easy new market entrance

Cons:

• Hazard to the marketplace position
• Removal of brand name Uniqueness
• Removal of the excellent shop experience.
• Danger of decline in elite sales.

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

Another choice that the company could think about, is to broaden towards the international markets without closing its domestic shops that adds to the major part of incomes of the business. The advantages and disadvantages connected to Alternative 3 are provided below;

Pros:

• Reducing competitors risk
• Access to the world markets
• Expanding customer base
• Big Profits
• Exploration of brand-new international markets.
• Boost in profits from global markets.
• Revenue diversity.
• Action towards being a strong global brand.

Cons:

• Extension of issues associated with variety.
• Differences in cultures could resulted in a failure of the brand name specifically in Asian nations.
• Low revenues at preliminary levels.
• Increase in marketing expenditures to acquire market share.



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