Recommendations of The Hp-Compaq Merger Story Case Solution

Home >> Ibs Center For Management Research >> The Hp-Compaq Merger Story >> Recommendations

Recommendations of The Hp-Compaq Merger Story Case Study Help

On the basis of above internal and external analysis of the company together with the evaluation of different alternatives, the business is suggested to consider alternative 3. As alternative 3 would permit the business to expand in global markets with no reduction in its local revenues and any wear and tear of its market position. By thinking about Alternative 3, the business might maintain its shop experience and brand name individuality. However, it might also think about alternative 2 that could enable the company to access the marketplaces without any potential financial investment. The company could pursue alternative 1 which would allow the company to focus on prospective global markets rather than the local markets however as the business is highly reliant on the local markets with 90% of its stores in the United States, there fore pursuing option 1 would result in the considerable decline in business's earnings. For that reason, the company is suggested to consider alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of The Hp-Compaq Merger Story Case Solution Stores

The company has a long term market position in US which can not be created quickly in the brand-new markets. The choice would assist the business to expand in worldwide markets along with the elimination of problems raised in its local markets related to its variety.

Pros:

• Exploration of new worldwide markets.
• Boost in profits from international markets.
• Removal of issues connected to diversity.
• Earnings diversity.
• Action towards being a strong international brand name.

Cons:

• Loss of extensive earnings from the regional markets.
• Boost in competitors.
• Distinctions in cultures could led to a failure of the brand specifically in Asian nations.
• Low profits at initial levels.
• Boost in marketing expenditures to acquire market share.

Alternative-2: Introduction of Click and Recommendations of The Hp-Compaq Merger Story Case Solution Stores

With the increased patterns towards online shopping, the online shops like Amazon, Alibaba etc. might pose an extreme danger to the market share of company. In this circumstance the company might think about introducing Click and Recommendations of The Hp-Compaq Merger Story Case Solution stores. These stores with a low requirement of funds to settle would make it possible for the company to reach worldwide markets, without ending its domestic stores.

Pros:

• Low financial investment
• Lowering competition risk
• Access to the world markets
• Enlarging customer base
• Easy to manage
• Big Revenues
• Low Operating Expense
• Easy new market entryway

Cons:

• Hazard to the marketplace position
• Elimination of brand name Originality
• Elimination of the fantastic store experience.
• Danger 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 global markets without closing its domestic stores that contributes to the huge part of revenues of the company. The pros and cons related to Alternative 3 are offered listed below;

Pros:

• Minimizing competitors danger
• Access to the world markets
• Expanding customer base
• Big Incomes
• Expedition of new global markets.
• Boost in profits from international markets.
• Profits diversity.
• Step towards being a strong global brand name.

Cons:

• Continuation of issues associated with variety.
• Distinctions in cultures might caused a failure of the brand specifically in Asian nations.
• Low incomes at initial levels.
• Increase in marketing expenditures to gain market share.



This is sample work and not applicable to real case study. Please place the order on the website to get your own originally done case solution.