Recommendations of The Polaris-Orbitech Merger Case Analysis

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Recommendations of The Polaris-Orbitech Merger Case Study Help

On the basis of above internal and external analysis of the company along with the examination of different alternatives, the company is recommended to consider alternative 3. As alternative 3 would enable the company to expand in international markets without any decrease in its local incomes and any wear and tear of its market position. The company might pursue alternative 1 which would enable the business to focus on possible worldwide markets rather than the local markets however as the company is highly dependent on the regional markets with 90% of its shops in the United States, there fore pursuing option 1 would result in the significant decline in business's income.

Aletrnative-1: Expanding International Brick and Recommendations of The Polaris-Orbitech Merger Case Analysis Stores

Growth towards international markets through opening brand-new stores in other Europe and Asian nations with closing domestic shops is although a good alternative for increasing the international existence of the business. The closing of domestic stores could extremely affect the revenues of the firm as above 90% of its stores are located domestically and closing those shops would ultimately lower the incomes of the company. Additionally, the business has a long term market position in US which can not be generated soon in the new markets. The choice would help the business to broaden in global markets along with the elimination of issues raised in its regional markets connected to its diversity. The pros and Cons for Option 1 are listed below;

Pros:

• Exploration of brand-new global markets.
• Boost in income from worldwide markets.
• Elimination of issues related to variety.
• Earnings diversity.
• Step towards being a strong global brand name.

Cons:

• Loss of comprehensive revenues from the local markets.
• Increase in competition.
• Distinctions in cultures might led to a failure of the brand name specifically in Asian countries.
• Low earnings at initial levels.
• Increase in marketing expenses to get market share.

Alternative-2: Introduction of Click and Recommendations of The Polaris-Orbitech Merger Case Solution Stores

With the increased trends towards online shopping, the online shops like Amazon, Alibaba and so on might pose an extreme threat to the market share of company. In this circumstance the business could think about introducing Click and Recommendations of The Polaris-Orbitech Merger Case Analysis stores. These stores with a low requirement of funds to settle would enable the company to reach international markets, without ending its domestic stores.

Pros:

• Low financial investment
• Decreasing competitors risk
• Access to the world markets
• Increasing the size of customer base
• Easy to handle
• Large Revenues
• Low Operating Costs
• Easy new market entryway

Cons:

• Danger to the marketplace position
• Removal of brand name Uniqueness
• Elimination of the fantastic store experience.
• Risk of decrease in elite sales.

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

Another alternative that the company might think about, is to broaden towards the worldwide markets without closing its domestic shops that contributes to the huge part of earnings of the business. The advantages and disadvantages associated with Alternative 3 are provided listed below;

Pros:

• Minimizing competitors danger
• Access to the world markets
• Increasing the size of consumer base
• Large Incomes
• Expedition of brand-new international markets.
• Increase in revenue from worldwide markets.
• Profits diversification.
• Action towards being a strong worldwide brand.

Cons:

• Extension of concerns related to variety.
• Distinctions in cultures might led to a failure of the brand name specifically in Asian nations.
• Low earnings at initial levels.
• Increase in marketing expenses to acquire market share.



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