Recommendations of Bavaria And The Swinkels Family: Brewing A Sticky Brand Case Analysis
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Recommendations of Bavaria And The Swinkels Family: Brewing A Sticky Brand Case Study Analysis
On the basis of above internal and external analysis of the company along with the examination of various alternatives, the company is recommended to think about alternative 3. As alternative 3 would enable the company to expand in international markets without any reduction in its local earnings and any degeneration of its market position. The business might pursue alternative 1 which would enable the company to focus on possible worldwide markets rather than the regional markets however as the business is extremely dependent on the local markets with 90% of its stores in the United States, there fore pursuing alternative 1 would result in the considerable decline in business's earnings.
Aletrnative-1: Expanding International Brick and Recommendations of Bavaria And The Swinkels Family: Brewing A Sticky Brand Case Analysis Stores
Growth towards international markets through opening brand-new shops in other Europe and Asian nations with closing domestic stores is although a great option for increasing the worldwide presence of the business. The closing of domestic stores could highly impact the revenues of the firm as above 90% of its stores are situated domestically and closing those shops would eventually reduce the incomes of the firm. Additionally, the business has a long term market position in US which can not be produced quickly in the new markets. The choice would help the company to expand in global markets together with the elimination of concerns raised in its local markets associated with its variety. The advantages and disadvantages for Alternative 1 are noted below;
Pros:
• Exploration of new international markets.
• Boost in income from worldwide markets.
• Elimination of issues associated with diversity.
• Income diversification.
• Action towards being a strong international brand name.
Cons:
• Loss of comprehensive incomes from the regional markets.
• Boost in competition.
• Distinctions in cultures might caused a failure of the brand name specifically in Asian nations.
• Low revenues at preliminary levels.
• Boost in marketing expenditures to gain market share.
Alternative-2: Introduction of Click and Recommendations of Bavaria And The Swinkels Family: Brewing A Sticky Brand Case Help Stores
Alternative 2 consists of the introduction of online market places through generating a correct company's website. With the increased trends towards online shopping, the online stores like Amazon, Alibaba and so on might position a serious hazard to the marketplace share of business. The competitors are moving towards click and Recommendations of Bavaria And The Swinkels Family: Brewing A Sticky Brand Case Solution shops with Space introducing Piperline. This shift towards online markets could minimize the earnings for company. In this circumstance the company could consider introducing Click and Recommendations of Bavaria And The Swinkels Family: Brewing A Sticky Brand Case Solution shops. These stores with a low requirement of funds to settle would make it possible for the business to reach international markets, without ending its domestic stores. The advantages and disadvantages of alternative 2 are given as follows;
Pros:
• Low investment
• Decreasing competitors risk
• Access to the world markets
• Expanding consumer base
• Easy to manage
• Big Revenues
• Low Operating Expense
• Easy new market entryway
Cons:
• Threat to the marketplace position
• Elimination of brand Uniqueness
• Elimination of the great store experience.
• Threat of decline in elite sales.
Alternative-3: Expansion towards International Markets Without closing Domestic Stores
Another choice that the company might consider, is to broaden towards the global markets without closing its domestic stores that contributes to the major part of profits of the company. The advantages and disadvantages connected to Alternative 3 are given below;
Pros:
• Minimizing competition threat
• Access to the world markets
• Enlarging consumer base
• Large Profits
• Expedition of brand-new international markets.
• Increase in revenue from international markets.
• Earnings diversification.
• Step towards being a strong international brand name.
Cons:
• Extension of issues related to diversity.
• Distinctions in cultures might resulted in a failure of the brand name especially in Asian countries.
• Low incomes at initial levels.
• Increase in marketing expenditures to acquire market share.
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