Recommendations of Etiqueta Negra: Growth Brand Building And Private Equity In Latin America Case Analysis

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Recommendations of Etiqueta Negra: Growth Brand Building And Private Equity In Latin America Case Study Solution

On the basis of above internal and external analysis of the business in addition to the evaluation of different options, the business is advised to think about alternative 3. As alternative 3 would permit the business to broaden in global markets with no decrease in its local earnings and any degeneration of its market position. By thinking about Alternative 3, the company might preserve its store experience and brand name uniqueness. However, it might likewise consider alternative 2 that could allow the business to access the marketplaces without any potential investment. Although, the business might pursue alternative 1 which would allow the business to focus on possible worldwide markets rather than the regional markets but as the business is highly dependent on the regional markets with 90% of its shops in the US, there fore pursuing alternative 1 would lead to the considerable decrease in business's income. For that reason, the company is suggested to think about alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of Etiqueta Negra: Growth Brand Building And Private Equity In Latin America Case Help Stores

Expansion towards international markets through opening brand-new stores in other Europe and Asian countries with closing domestic shops is although a good alternative for increasing the global presence of the business. The closing of domestic shops could extremely affect the revenues of the company as above 90% of its stores are located locally and closing those stores would ultimately minimize the profits of the firm. The business has a long term market position in United States which can not be generated soon in the brand-new markets. The alternative would help the company to broaden in global markets together with the elimination of issues raised in its regional markets connected to its diversity. The benefits and drawbacks for Alternative 1 are listed below;

Pros:

• Expedition of new worldwide markets.
• Boost in revenue from international markets.
• Removal of problems connected to variety.
• Earnings diversification.
• Action towards being a strong global brand name.

Cons:

• Loss of extensive earnings from the regional markets.
• Increase in competition.
• Distinctions in cultures could resulted in a failure of the brand particularly in Asian nations.
• Low revenues at preliminary levels.
• Increase in marketing expenditures to gain market share.

Alternative-2: Introduction of Click and Recommendations of Etiqueta Negra: Growth Brand Building And Private Equity In Latin America Case Help Stores

With the increased trends towards online shopping, the online stores like Amazon, Alibaba and so on could present a severe hazard to the market share of company. In this scenario the company could consider introducing Click and Recommendations of Etiqueta Negra: Growth Brand Building And Private Equity In Latin America Case Solution stores. These stores with a low requirement of funds to settle would make it possible for the company to reach international markets, without ending its domestic stores.

Pros:

• Low financial investment
• Lowering competition danger
• Access to the world markets
• Expanding consumer base
• Easy to manage
• Big Revenues
• Low Operating Costs
• Easy new market entrance

Cons:

• Hazard to the market position
• Removal of brand name Uniqueness
• Removal of the excellent store experience.
• Risk of decline in elite sales.

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

Another alternative that the company could consider, is to expand towards the worldwide markets without closing its domestic stores that adds to the huge part of revenues of the company. The benefits and drawbacks related to Alternative 3 are provided listed below;

Pros:

• Decreasing competition hazard
• Access to the world markets
• Expanding customer base
• Large Incomes
• Expedition of brand-new global markets.
• Boost in income from international markets.
• Profits diversification.
• Step towards being a strong worldwide brand name.

Cons:

• Extension of concerns related to variety.
• Differences in cultures could resulted in a failure of the brand particularly in Asian nations.
• Low earnings at initial levels.
• Boost in marketing expenses to get market share.



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