Recommendations of The Morgan Stanley - Dean Witter Merger Case Solution

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Recommendations of The Morgan Stanley - Dean Witter Merger Case Study Help

On the basis of above internal and external analysis of the business along with the examination of different options, the company is suggested to consider alternative 3. As alternative 3 would allow the business to broaden in international markets without any decrease in its regional incomes and any degeneration of its market position. The company could pursue alternative 1 which would allow the company to focus on prospective international markets rather than the local markets however as the business is highly reliant on the local markets with 90% of its shops in the US, there fore pursuing alternative 1 would result in the considerable decline in company's income.

Aletrnative-1: Expanding International Brick and Recommendations of The Morgan Stanley - Dean Witter Merger Case Help Stores

Expansion towards international markets through opening brand-new shops in other Europe and Asian nations with closing domestic stores is although a great option for increasing the worldwide existence of the business. The closing of domestic stores might highly affect the earnings of the company as above 90% of its shops are situated domestically and closing those shops would eventually lower the profits of the company. The business has a long term market position in US which can not be produced quickly in the brand-new markets. The alternative would help the business to broaden in worldwide markets together with the removal of problems raised in its regional markets connected to its variety. The advantages and disadvantages for Alternative 1 are listed below;

Pros:

• Expedition of new global markets.
• Increase in profits from global markets.
• Removal of problems associated with variety.
• Income diversity.
• Action towards being a strong worldwide brand.

Cons:

• Loss of substantial earnings from the regional markets.
• Increase in competition.
• Differences in cultures could led to a failure of the brand specifically in Asian countries.
• Low revenues at preliminary levels.
• Increase in marketing expenditures to get market share.

Alternative-2: Introduction of Click and Recommendations of The Morgan Stanley - Dean Witter Merger Case Analysis Stores

With the increased patterns towards online shopping, the online shops like Amazon, Alibaba and so on might pose a severe hazard to the market share of business. In this circumstance the business could consider presenting Click and Recommendations of The Morgan Stanley - Dean Witter Merger Case Analysis stores. These stores with a low requirement of funds to settle would allow the business to reach global markets, without ending its domestic shops.

Pros:

• Low financial investment
• Reducing competition danger
• Access to the world markets
• Increasing the size of customer base
• Easy to manage
• Large Profits
• Low Operating Costs
• Easy new market entrance

Cons:

• Risk to the marketplace position
• Removal of brand name Individuality
• Elimination 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 business might think about, is to broaden towards the international markets without closing its domestic shops that adds to the huge part of earnings of the business. The benefits and drawbacks associated with Alternative 3 are provided listed below;

Pros:

• Reducing competition risk
• Access to the world markets
• Increasing the size of customer base
• Large Profits
• Exploration of new global markets.
• Boost in earnings from international markets.
• Revenue diversification.
• Action towards being a strong international brand.

Cons:

• Extension of concerns related to diversity.
• Distinctions in cultures could led to a failure of the brand especially in Asian countries.
• Low profits at initial levels.
• Boost in marketing expenditures to get market share.



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