Recommendations of Ayala Corporation: One Family’S Contribution To Nation Building Case Help

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Recommendations of Ayala Corporation: One Family’S Contribution To Nation Building Case Study Analysis

On the basis of above internal and external analysis of the business along with the assessment of numerous alternatives, the company is recommended to consider alternative 3. As alternative 3 would permit the company to broaden in global markets without any reduction in its local profits and any deterioration of its market position. The company could pursue alternative 1 which would enable the business to focus on potential global markets rather than the local markets but as the business is highly dependent on the local markets with 90% of its shops in the United States, there fore pursuing alternative 1 would result in the substantial decrease in business's earnings.

Aletrnative-1: Expanding International Brick and Recommendations of Ayala Corporation: One Family’S Contribution To Nation Building Case Help Stores

Expansion towards global markets through opening new stores in other Europe and Asian countries with closing domestic shops is although a good choice for increasing the global existence of the business. Nevertheless, the closing of domestic stores might extremely impact the profits of the company as above 90% of its shops are located domestically and closing those shops would eventually minimize the revenues of the company. The company has a long term market position in United States which can not be produced quickly in the new markets. The alternative would assist the company to broaden in global markets in addition to the removal of concerns raised in its regional markets associated with its variety. The benefits and drawbacks for Alternative 1 are noted below;

Pros:

• Expedition of brand-new worldwide markets.
• Increase in income from international markets.
• Elimination of issues related to variety.
• Earnings diversification.
• Step towards being a strong global brand.

Cons:

• Loss of comprehensive earnings from the regional markets.
• Increase in competition.
• Distinctions 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.

Alternative-2: Introduction of Click and Recommendations of Ayala Corporation: One Family’S Contribution To Nation Building Case Analysis Stores

Alternative 2 consists of the intro of online market locations through creating an appropriate business's site. With the increased trends towards online shopping, the online stores like Amazon, Alibaba etc. might pose a serious danger to the marketplace share of business. Furthermore, the competitors are shifting towards click and Recommendations of Ayala Corporation: One Family’S Contribution To Nation Building Case Solution shops with Gap introducing Piperline. This shift towards online markets could lower the profits for company. In this situation the company could think about introducing Click and Recommendations of Ayala Corporation: One Family’S Contribution To Nation Building Case Solution shops. These stores with a low requirement of funds to settle would allow 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
• Minimizing competitors danger
• Access to the world markets
• Enlarging consumer base
• Easy to handle
• Large Incomes
• Low Operating Expense
• Easy new market entryway

Cons:

• Hazard to the marketplace position
• Elimination of brand Uniqueness
• Removal of the excellent shop experience.
• Threat of decline in elite sales.

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

Another alternative that the business might think about, is to expand towards the international markets without closing its domestic stores that contributes to the huge part of earnings of the company. The benefits and drawbacks associated with Alternative 3 are given listed below;

Pros:

• Reducing competition hazard
• Access to the world markets
• Enlarging consumer base
• Big Earnings
• Exploration of brand-new worldwide markets.
• Boost in revenue from international markets.
• Revenue diversity.
• Step towards being a strong international brand name.

Cons:

• Continuation of issues associated with diversity.
• Differences in cultures could caused a failure of the brand name particularly in Asian countries.
• Low profits at initial levels.
• Boost in marketing expenses to gain market share.



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