Recommendations of Firmenich: A Passion For Smell And Taste Case Help

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Recommendations of Firmenich: A Passion For Smell And Taste Case Study Solution

On the basis of above internal and external analysis of the company in addition to the evaluation of various options, the company is advised to consider alternative 3. As alternative 3 would allow the company to broaden in international markets with no reduction in its local revenues and any degeneration of its market position. By considering Alternative 3, the business could preserve its shop experience and brand uniqueness. However, it could also consider alternative 2 that could enable the company to access the markets without any possible 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 however as the business is highly reliant on the local markets with 90% of its shops in the US, there fore pursuing alternative 1 would result in the considerable decrease in business's earnings. Therefore, the company is recommended to think about alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of Firmenich: A Passion For Smell And Taste Case Analysis Stores

Expansion towards international markets through opening new shops in other Europe and Asian nations with closing domestic stores is although an excellent alternative for increasing the international existence of the company. However, the closing of domestic shops could highly impact the earnings of the company as above 90% of its shops are located domestically and closing those shops would ultimately reduce the profits of the firm. Furthermore, the company has a long term market position in United States which can not be generated quickly in the brand-new markets. The alternative would assist the company to expand in international markets in addition to the elimination of issues raised in its local markets related to its diversity. The advantages and disadvantages for Alternative 1 are noted below;

Pros:

• Expedition of brand-new global markets.
• Boost in profits from worldwide markets.
• Elimination of concerns related to diversity.
• Profits diversity.
• Action towards being a strong global brand name.

Cons:

• Loss of extensive revenues from the regional markets.
• Boost in competition.
• Differences in cultures might led to a failure of the brand especially in Asian nations.
• Low profits at preliminary levels.
• Boost in marketing expenses to get market share.

Alternative-2: Introduction of Click and Recommendations of Firmenich: A Passion For Smell And Taste Case Solution Stores

Alternative 2 includes the introduction of online market places through creating a correct company's site. With the increased trends towards online shopping, the online stores like Amazon, Alibaba etc. might pose a serious hazard to the marketplace share of company. The competitors are shifting towards click and Recommendations of Firmenich: A Passion For Smell And Taste Case Solution stores with Gap introducing Piperline. This shift towards online markets could reduce the profits for company. In this circumstance the company could think about introducing Click and Recommendations of Firmenich: A Passion For Smell And Taste 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 shops. The pros and cons of option 2 are provided as follows;

Pros:

• Low investment
• Lowering competitors risk
• Access to the world markets
• Expanding consumer base
• Easy to handle
• Big Incomes
• Low Operating Expense
• Easy brand-new market entrance

Cons:

• Threat to the marketplace position
• Elimination of brand Uniqueness
• Removal of the excellent store experience.
• Danger of decrease in elite sales.

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

Another choice that the business could consider, is to broaden towards the global markets without closing its domestic shops that adds to the major part of profits of the company. The pros and cons associated with Alternative 3 are given listed below;

Pros:

• Reducing competition threat
• Access to the world markets
• Expanding consumer base
• Big Earnings
• Expedition of new international markets.
• Boost in revenue from international markets.
• Profits diversification.
• Step towards being a strong worldwide brand.

Cons:

• Continuation of problems associated with variety.
• Distinctions in cultures could led to a failure of the brand especially in Asian countries.
• Low revenues at initial levels.
• Boost in marketing expenses to get market share.



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