Recommendations of The Aventis-Sanofi Merger: Role Of French Government Case Solution

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Recommendations of The Aventis-Sanofi Merger: Role Of French Government Case Study Analysis

On the basis of above internal and external analysis of the company in addition to the assessment of different options, the business is advised to think about alternative 3. As alternative 3 would allow the business to expand in global markets with no reduction in its regional profits and any degeneration of its market position. By thinking about Alternative 3, the company could preserve its shop experience and brand name individuality. It might likewise consider alternative 2 that might allow the company to access the markets without any potential investment. Although, the company could pursue alternative 1 which would make it possible for the company to concentrate on prospective worldwide markets instead of the regional markets however as the company is highly based on the regional markets with 90% of its stores in the US, there fore pursuing alternative 1 would lead to the considerable decline in company's earnings. The business is recommended to consider alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of The Aventis-Sanofi Merger: Role Of French Government Case Solution Stores

Expansion towards international markets through opening new shops in other Europe and Asian nations with closing domestic stores is although an excellent alternative for increasing the global existence of the business. Nevertheless, the closing of domestic shops might highly affect the revenues of the company as above 90% of its shops are located domestically and closing those shops would ultimately reduce the earnings of the firm. The company has a long term market position in US which can not be generated quickly in the new markets. The choice would help the company to broaden in international markets together with the removal of problems raised in its regional markets associated with its diversity. The pros and Cons for Option 1 are listed below;

Pros:

• Exploration of new worldwide markets.
• Boost in profits from worldwide markets.
• Elimination of issues associated with variety.
• Revenue diversification.
• Action towards being a strong worldwide brand name.

Cons:

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

Alternative-2: Introduction of Click and Recommendations of The Aventis-Sanofi Merger: Role Of French Government Case Analysis Stores

Alternative 2 includes the intro of online market locations through creating a correct company's website. With the increased trends towards online shopping, the online stores like Amazon, Alibaba etc. might position an extreme danger to the marketplace share of business. Additionally, the rivals are moving towards click and Recommendations of The Aventis-Sanofi Merger: Role Of French Government Case Solution shops with Gap presenting Piperline. This shift towards online markets could minimize the incomes for company. In this scenario the business could consider introducing Click and Recommendations of The Aventis-Sanofi Merger: Role Of French Government Case Help stores. These shops with a low requirement of funds to settle would make it possible for the business to reach international markets, without ending its domestic shops. The advantages and disadvantages of alternative 2 are offered as follows;

Pros:

• Low investment
• Decreasing competitors danger
• Access to the world markets
• Enlarging customer base
• Easy to handle
• Large Incomes
• Low Operating Costs
• Easy new market entrance

Cons:

• Danger to the market position
• Removal of brand name Originality
• Elimination of the excellent store experience.
• Threat of decrease 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 worldwide markets without closing its domestic shops that contributes to the major part of revenues of the company. The pros and cons associated with Alternative 3 are given listed below;

Pros:

• Minimizing competitors hazard
• Access to the world markets
• Expanding customer base
• Big Revenues
• Exploration of new worldwide markets.
• Boost in revenue from worldwide markets.
• Profits diversity.
• Action towards being a strong international brand name.

Cons:

• Extension of problems connected to diversity.
• Distinctions in cultures could resulted in a failure of the brand name particularly in Asian countries.
• Low profits at initial levels.
• Boost in marketing expenditures to get market share.



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