Recommendations of Bavaria: Brewing With Local Roots And Global Ambitions Case Analysis

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Recommendations of Bavaria: Brewing With Local Roots And Global Ambitions Case Study Help

On the basis of above internal and external analysis of the company together with the assessment of various alternatives, the business is advised to consider alternative 3. As alternative 3 would enable the business to expand in worldwide markets with no reduction in its local earnings and any degeneration of its market position. By thinking about Alternative 3, the company might preserve its shop experience and brand uniqueness. Nevertheless, it might also consider alternative 2 that might allow the company to access the markets with no possible investment. Although, the company might pursue alternative 1 which would enable the company to concentrate on potential global markets rather than the local markets however as the company is highly depending on the local markets with 90% of its shops in the United States, there fore pursuing alternative 1 would lead to the considerable decrease in business's revenue. The business is recommended to consider alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of Bavaria: Brewing With Local Roots And Global Ambitions Case Help Stores

Growth towards global markets through opening new shops in other Europe and Asian nations with closing domestic shops is although a good alternative for increasing the global existence of the company. However, the closing of domestic shops might extremely impact the profits of the company as above 90% of its stores are located domestically and closing those stores would eventually lower the profits of the company. Moreover, the business has a long term market position in US which can not be created soon in the brand-new markets. The alternative would assist the business to broaden in worldwide markets together with the elimination of issues raised in its regional markets related to its diversity. The pros and Cons for Alternative 1 are noted below;

Pros:

• Expedition of brand-new international markets.
• Boost in income from global markets.
• Elimination of problems associated with variety.
• Profits diversity.
• Action towards being a strong international brand.

Cons:

• Loss of extensive earnings from the regional markets.
• Increase in competition.
• Differences in cultures could caused a failure of the brand specifically in Asian countries.
• Low revenues at preliminary levels.
• Increase in marketing expenses to get market share.

Alternative-2: Introduction of Click and Recommendations of Bavaria: Brewing With Local Roots And Global Ambitions Case Analysis Stores

Alternative 2 includes the introduction of online market locations through producing a proper business's website. With the increased patterns towards online shopping, the online shops like Amazon, Alibaba and so on might pose a severe threat to the marketplace share of company. Moreover, the competitors are moving towards click and Recommendations of Bavaria: Brewing With Local Roots And Global Ambitions Case Help stores with Gap introducing Piperline. This shift towards online markets might minimize the revenues for business. In this circumstance the company might consider presenting Click and Recommendations of Bavaria: Brewing With Local Roots And Global Ambitions Case Analysis stores. These stores with a low requirement of funds to settle would make it possible for the company to reach worldwide markets, without ending its domestic stores. The advantages and disadvantages of alternative 2 are provided as follows;

Pros:

• Low investment
• Minimizing competitors hazard
• Access to the world markets
• Increasing the size of consumer base
• Easy to manage
• Big Incomes
• Low Operating Costs
• Easy new market entrance

Cons:

• Threat to the market position
• Elimination of brand name Originality
• Removal of the terrific shop experience.
• Risk of decrease in elite sales.

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

Another alternative that the company might think about, is to expand towards the international markets without closing its domestic stores that adds to the major part of revenues of the company. The benefits and drawbacks related to Alternative 3 are provided listed below;

Pros:

• Lowering competitors risk
• Access to the world markets
• Increasing the size of customer base
• Big Profits
• Exploration of brand-new global markets.
• Boost in earnings from global markets.
• Revenue diversification.
• Step towards being a strong worldwide brand.

Cons:

• Continuation of concerns associated with variety.
• Differences in cultures might resulted in a failure of the brand name specifically in Asian nations.
• Low earnings at preliminary levels.
• Boost in marketing expenditures to acquire market share.



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