Recommendations of The Reliance Group Saga Break-Up Of The Largest Family-Owned Business In India Case Solution

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Recommendations of The Reliance Group Saga Break-Up Of The Largest Family-Owned Business In India Case Study Solution

On the basis of above internal and external analysis of the business along with the assessment of numerous alternatives, the company is suggested to consider alternative 3. As alternative 3 would allow the company to expand in worldwide markets without any decrease in its local profits and any degeneration of its market position. The company might pursue alternative 1 which would allow the business to focus on prospective international markets rather than the regional markets however as the company is extremely reliant on the regional markets with 90% of its stores in the US, there fore pursuing alternative 1 would result in the considerable decrease in business's revenue.

Aletrnative-1: Expanding International Brick and Recommendations of The Reliance Group Saga Break-Up Of The Largest Family-Owned Business In India Case Help Stores

Expansion towards international markets through opening new shops in other Europe and Asian countries with closing domestic shops is although a good option for increasing the global presence of the business. The closing of domestic shops might highly affect the revenues of the firm as above 90% of its stores are located domestically and closing those shops would ultimately minimize the profits of the firm. The business has a long term market position in US which can not be produced quickly in the brand-new markets. The choice would help the business to broaden in worldwide markets along with the removal of issues raised in its regional markets associated with its variety. The advantages and disadvantages for Alternative 1 are noted below;

Pros:

• Expedition of new global markets.
• Boost in income from international markets.
• Elimination of problems connected to variety.
• Profits diversification.
• Step towards being a strong worldwide brand name.

Cons:

• Loss of extensive incomes from the regional markets.
• Boost in competitors.
• Distinctions in cultures might resulted in a failure of the brand name especially in Asian countries.
• Low earnings at preliminary levels.
• Boost in marketing expenditures to get market share.

Alternative-2: Introduction of Click and Recommendations of The Reliance Group Saga Break-Up Of The Largest Family-Owned Business In India Case Analysis Stores

With the increased patterns towards online shopping, the online shops like Amazon, Alibaba etc. could posture a serious hazard to the market share of company. In this circumstance the company could consider introducing Click and Recommendations of The Reliance Group Saga Break-Up Of The Largest Family-Owned Business In India Case Help shops. 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 stores.

Pros:

• Low financial investment
• Minimizing competitors danger
• Access to the world markets
• Increasing the size of consumer base
• Easy to handle
• Big Earnings
• Low Operating Costs
• Easy new market entrance

Cons:

• Danger to the market position
• Elimination of brand Originality
• Elimination of the fantastic store experience.
• Risk of decrease in elite sales.

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

Another choice that the company might think about, is to broaden towards the international markets without closing its domestic stores that contributes to the huge part of revenues of the business. The advantages and disadvantages associated with Alternative 3 are offered below;

Pros:

• Lowering competition risk
• Access to the world markets
• Increasing the size of consumer base
• Big Revenues
• Exploration of new international markets.
• Boost in earnings from global markets.
• Profits diversity.
• Step towards being a strong global brand name.

Cons:

• Extension of concerns connected to variety.
• Differences in cultures could led to a failure of the brand name particularly in Asian nations.
• Low profits at preliminary levels.
• Increase in marketing expenses to acquire market share.



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