Recommendations of The Acquisition Bid For Ufj Holdings Case Solution

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Recommendations of The Acquisition Bid For Ufj Holdings Case Study Help

On the basis of above internal and external analysis of the company together with the assessment of different alternatives, the business is recommended to think about alternative 3. As alternative 3 would permit the business to broaden in worldwide markets without any reduction in its local earnings and any deterioration of its market position. By considering Alternative 3, the company might preserve its shop experience and brand uniqueness. However, it might also consider alternative 2 that might enable the company to access the marketplaces with no possible investment. Although, the business could pursue alternative 1 which would enable the company to concentrate on prospective international markets instead of the regional markets however as the business is highly depending on the regional markets with 90% of its shops in the US, there fore pursuing alternative 1 would lead to the substantial decrease in business's income. The business is suggested to think about alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of The Acquisition Bid For Ufj Holdings Case Solution Stores

Growth towards international markets through opening new stores in other Europe and Asian countries with closing domestic stores is although an excellent option for increasing the international existence of the business. However, the closing of domestic stores might extremely affect the incomes of the company as above 90% of its shops are located domestically and closing those shops would eventually reduce the profits of the company. The business has a long term market position in US which can not be generated soon in the brand-new markets. The option would assist the company to broaden in global markets in addition to the removal of problems raised in its regional markets related to its variety. The advantages and disadvantages for Alternative 1 are listed below;

Pros:

• Expedition of new international markets.
• Boost in revenue from international markets.
• Elimination of concerns associated with variety.
• Revenue diversification.
• Action towards being a strong global brand name.

Cons:

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

Alternative-2: Introduction of Click and Recommendations of The Acquisition Bid For Ufj Holdings Case Analysis Stores

With the increased trends towards online shopping, the online stores like Amazon, Alibaba etc. could present a severe hazard to the market share of business. In this circumstance the company could consider introducing Click and Recommendations of The Acquisition Bid For Ufj Holdings Case Analysis stores. These shops with a low requirement of funds to settle would make it possible for the business to reach worldwide markets, without ending its domestic stores.

Pros:

• Low financial investment
• Reducing competition risk
• Access to the world markets
• Expanding consumer base
• Easy to manage
• Large Profits
• Low Operating Expense
• Easy new market entryway

Cons:

• Hazard to the market position
• Elimination of brand Uniqueness
• Elimination of the great store experience.
• Threat of decline in elite sales.

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

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

Pros:

• Minimizing competition threat
• Access to the world markets
• Expanding customer base
• Big Incomes
• Expedition of new worldwide markets.
• Increase in revenue from global markets.
• Profits diversification.
• Action towards being a strong global brand name.

Cons:

• Extension of concerns connected to diversity.
• Distinctions in cultures might resulted in a failure of the brand name specifically in Asian nations.
• Low profits at preliminary levels.
• Increase in marketing expenses to acquire market share.



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