Recommendations of The Fall Of Bear Stearns Case Solution

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Recommendations of The Fall Of Bear Stearns Case Study Solution

On the basis of above internal and external analysis of the business along with the evaluation of numerous alternatives, the business is recommended to think about alternative 3. As alternative 3 would allow the company to expand in worldwide markets without any decrease in its regional profits and any wear and tear of its market position. By thinking about Alternative 3, the company could keep its shop experience and brand name originality. However, it might also think about alternative 2 that could enable the business to access the markets with no potential investment. Although, the business might pursue alternative 1 which would allow the business to concentrate on prospective international markets instead of the local markets however as the company is highly depending on the regional markets with 90% of its stores in the United States, there fore pursuing option 1 would lead to the substantial decrease in business's profits. The business is advised to think about alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of The Fall Of Bear Stearns Case Solution Stores

Expansion towards worldwide markets through opening brand-new stores in other Europe and Asian countries with closing domestic shops is although an excellent choice for increasing the worldwide existence of the business. However, the closing of domestic stores might extremely affect the incomes of the firm as above 90% of its stores lie domestically and closing those stores would eventually minimize the incomes of the firm. The business has a long term market position in United States which can not be generated quickly in the new markets. The choice would help the business to expand in international markets together with the elimination of problems raised in its regional markets connected to its diversity. The pros and Cons for Option 1 are listed below;

Pros:

• Expedition of new global markets.
• Increase in earnings from worldwide markets.
• Elimination of concerns connected to diversity.
• Profits diversity.
• Action towards being a strong global brand name.

Cons:

• Loss of comprehensive earnings from the local markets.
• Boost in competition.
• Distinctions in cultures could led to a failure of the brand name especially in Asian countries.
• Low profits at initial levels.
• Boost in marketing expenses to acquire market share.

Alternative-2: Introduction of Click and Recommendations of The Fall Of Bear Stearns Case Analysis Stores

Alternative 2 includes the introduction of online market locations through creating a correct business's site. With the increased patterns towards online shopping, the online shops like Amazon, Alibaba etc. could position a serious risk to the market share of company. Furthermore, the rivals are moving towards click and Recommendations of The Fall Of Bear Stearns Case Analysis stores with Gap introducing Piperline. This shift towards online markets might decrease the incomes for business. In this circumstance the company might think about introducing Click and Recommendations of The Fall Of Bear Stearns Case Help shops. These shops with a low requirement of funds to settle would make it possible for the business to reach global markets, without ending its domestic shops. The pros and cons of option 2 are given as follows;

Pros:

• Low financial investment
• Reducing competition hazard
• Access to the world markets
• Enlarging consumer base
• Easy to manage
• Large Earnings
• Low Operating Expense
• Easy brand-new market entrance

Cons:

• Danger to the market position
• Removal of brand Individuality
• Removal of the fantastic store experience.
• Threat of decline in elite sales.

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

Another choice that the business might think about, is to expand towards the worldwide 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 offered below;

Pros:

• Decreasing competitors risk
• Access to the world markets
• Enlarging customer base
• Large Profits
• Exploration of brand-new worldwide markets.
• Boost in income from worldwide markets.
• Revenue diversity.
• Step towards being a strong international brand.

Cons:

• Continuation of problems related to diversity.
• Distinctions in cultures could led to a failure of the brand name especially in Asian nations.
• Low profits at preliminary levels.
• Boost in marketing expenditures to gain market share.



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