Recommendations of Ayala Corporation: One Familys Contribution To Nation Building Case Help

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Recommendations of Ayala Corporation: One Familys Contribution To Nation Building Case Study Solution

On the basis of above internal and external analysis of the business together with the assessment of various alternatives, the business is suggested to consider alternative 3. As alternative 3 would enable the business to expand in international markets without any reduction in its local profits and any wear and tear of its market position. By thinking about Alternative 3, the business might keep its store experience and brand individuality. Nevertheless, it might likewise think about alternative 2 that might permit the business to access the markets without any potential financial investment. The business might pursue alternative 1 which would make it possible for the company to focus on possible international markets rather than the local markets but as the business is highly dependent on the local markets with 90% of its shops in the US, there fore pursuing option 1 would result in the significant decline in business's income. Therefore, the company is suggested to think about alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of Ayala Corporation: One Familys Contribution To Nation Building Case Analysis Stores

Growth towards international markets through opening new stores in other Europe and Asian nations with closing domestic shops is although a good alternative for increasing the global presence of the business. The closing of domestic stores could highly affect the profits of the company as above 90% of its shops are located locally and closing those shops would eventually minimize the incomes of the firm. Moreover, the company has a long term market position in United States which can not be created soon in the new markets. The option would help the business to expand in worldwide markets in addition to the removal of problems raised in its regional markets related to its diversity. The pros and Cons for Alternative 1 are noted below;

Pros:

• Expedition of new global markets.
• Boost in earnings from international markets.
• Elimination of problems associated with diversity.
• Revenue diversity.
• Step towards being a strong worldwide brand name.

Cons:

• Loss of extensive incomes from the regional markets.
• Increase in competition.
• Differences in cultures could resulted in a failure of the brand especially in Asian nations.
• Low incomes at initial levels.
• Boost in marketing expenditures to gain market share.

Alternative-2: Introduction of Click and Recommendations of Ayala Corporation: One Familys Contribution To Nation Building Case Solution Stores

Alternative 2 consists of the introduction of online market locations through creating an appropriate business's website. With the increased trends towards online shopping, the online stores like Amazon, Alibaba etc. could pose an extreme threat to the market share of company. Moreover, the rivals are shifting towards click and Recommendations of Ayala Corporation: One Familys Contribution To Nation Building Case Solution stores with Gap introducing Piperline. This shift towards online markets could lower the incomes for business. In this situation the company could think about presenting Click and Recommendations of Ayala Corporation: One Familys Contribution To Nation Building Case Analysis shops. These shops with a low requirement of funds to settle would make it possible for the company to reach international markets, without ending its domestic shops. The benefits and drawbacks of alternative 2 are offered as follows;

Pros:

• Low investment
• Reducing competition danger
• Access to the world markets
• Enlarging customer base
• Easy to manage
• Large Profits
• Low Operating Costs
• Easy new market entryway

Cons:

• Risk to the marketplace position
• Elimination of brand Individuality
• Removal of the terrific store experience.
• Risk of decrease in elite sales.

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

Another alternative that the business might consider, is to broaden towards the global markets without closing its domestic stores that adds to the huge part of revenues of the business. The advantages and disadvantages associated with Alternative 3 are provided listed below;

Pros:

• Decreasing competition danger
• Access to the world markets
• Expanding consumer base
• Large Profits
• Expedition of new worldwide markets.
• Boost in revenue from international markets.
• Revenue diversification.
• Action towards being a strong global brand name.

Cons:

• Continuation of concerns connected to diversity.
• Differences in cultures could caused a failure of the brand name specifically in Asian countries.
• Low revenues at initial levels.
• Increase in marketing expenditures to get market share.



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