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 Analysis

On the basis of above internal and external analysis of the company along with the evaluation of various options, the business is recommended to consider alternative 3. As alternative 3 would allow the business to expand in international markets without any reduction in its regional profits and any degeneration of its market position. By considering Alternative 3, the business might maintain its store experience and brand originality. It might also think about alternative 2 that might allow the company to access the markets without any prospective financial investment. The company might pursue alternative 1 which would make it possible for the company to focus on prospective international markets rather than the regional markets but as the company is highly dependent on the regional markets with 90% of its stores in the United States, there fore pursuing alternative 1 would result in the substantial decrease in company's profits. The business is advised to consider alternative 3.

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

Expansion towards global markets through opening brand-new stores in other Europe and Asian countries with closing domestic stores is although a good option for increasing the worldwide existence of the company. The closing of domestic stores might highly affect the revenues of the company as above 90% of its shops are located domestically and closing those stores would eventually lower the revenues of the company. Furthermore, the company has a long term market position in United States which can not be created soon in the new markets. The option would assist the company to expand in global markets together with the removal of issues raised in its local markets associated with its diversity. The benefits and drawbacks for Option 1 are noted below;

Pros:

• Expedition of brand-new international markets.
• Increase in revenue from global markets.
• Elimination of concerns related to variety.
• Profits diversification.
• Step towards being a strong global brand name.

Cons:

• Loss of extensive profits from the local markets.
• Increase in competitors.
• Distinctions in cultures might caused a failure of the brand name especially in Asian countries.
• Low incomes at preliminary levels.
• Boost in marketing expenses to acquire 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

Alternative 2 consists of the introduction of online market places through producing a correct business's website. With the increased patterns towards online shopping, the online stores like Amazon, Alibaba and so on might pose an extreme danger to the market share of company. Moreover, the competitors are moving towards click and Recommendations of The Reliance Group Saga: Break-Up Of The Largest Family-Owned Business In India Case Analysis shops with Space presenting Piperline. This shift towards online markets could minimize the profits for company. In this situation the business might consider introducing Click and Recommendations of The Reliance Group Saga: Break-Up Of The Largest Family-Owned Business In India Case Analysis shops. These shops with a low requirement of funds to settle would enable the company to reach global markets, without ending its domestic stores. The benefits and drawbacks of option 2 are given as follows;

Pros:

• Low financial investment
• Decreasing competitors danger
• Access to the world markets
• Enlarging customer base
• Easy to manage
• Large Revenues
• Low Operating Costs
• Easy new market entryway

Cons:

• Risk to the market position
• Removal of brand name Uniqueness
• Elimination of the excellent shop experience.
• Danger of decline in elite sales.

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

Another alternative that the company could consider, is to broaden towards the international markets without closing its domestic shops that adds to the huge part of revenues of the business. The benefits and drawbacks related to Alternative 3 are offered below;

Pros:

• Reducing competitors threat
• Access to the world markets
• Expanding consumer base
• Large Profits
• Exploration of brand-new worldwide markets.
• Boost in revenue from worldwide markets.
• Income diversification.
• Step towards being a strong worldwide brand.

Cons:

• Continuation of issues connected to variety.
• Distinctions in cultures might resulted in a failure of the brand specifically in Asian nations.
• Low incomes at preliminary levels.
• Increase in marketing expenses to get market share.



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