Recommendations of Justin Wilson Plc: Financing A Formula One Rising Star (A) Case Solution

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Recommendations of Justin Wilson Plc: Financing A Formula One Rising Star (A) Case Study Analysis

On the basis of above internal and external analysis of the business in addition to the examination of different alternatives, the business is advised to think about alternative 3. As alternative 3 would allow the business to broaden in international markets with no decrease in its local revenues and any deterioration of its market position. By thinking about Alternative 3, the company might preserve its shop experience and brand individuality. It could also consider alternative 2 that could enable the company to access the markets without any potential investment. Although, the company could pursue alternative 1 which would make it possible for the business to focus on prospective global markets instead of the local markets however as the company is extremely dependent on the local markets with 90% of its stores in the US, there fore pursuing alternative 1 would lead to the significant decline in business's earnings. The business is suggested to think about alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of Justin Wilson Plc: Financing A Formula One Rising Star (A) Case Analysis Stores

Growth towards global markets through opening brand-new shops in other Europe and Asian nations with closing domestic stores is although a good choice for increasing the global existence of the company. The closing of domestic stores could highly affect the incomes of the firm as above 90% of its shops are situated locally and closing those stores would ultimately reduce the earnings of the company. Additionally, the business has a long term market position in US which can not be created quickly in the new markets. The choice would help the business to broaden in global markets together with the elimination of issues raised in its regional markets related to its diversity. The benefits and drawbacks for Alternative 1 are noted below;

Pros:

• Exploration of brand-new global markets.
• Boost in profits from global markets.
• Elimination of concerns associated with diversity.
• Earnings diversification.
• Action towards being a strong international brand name.

Cons:

• Loss of substantial incomes from the local markets.
• Increase in competition.
• Distinctions in cultures could caused a failure of the brand particularly in Asian nations.
• Low profits at preliminary levels.
• Boost in marketing expenses to gain market share.

Alternative-2: Introduction of Click and Recommendations of Justin Wilson Plc: Financing A Formula One Rising Star (A) Case Solution Stores

Alternative 2 consists of the introduction of online market locations through generating an appropriate company's website. With the increased trends towards online shopping, the online stores like Amazon, Alibaba and so on might pose an extreme hazard to the market share of company. The rivals are shifting towards click and Recommendations of Justin Wilson Plc: Financing A Formula One Rising Star (A) Case Analysis shops with Gap presenting Piperline. This shift towards online markets might lower the profits for company. In this circumstance the business could consider presenting Click and Recommendations of Justin Wilson Plc: Financing A Formula One Rising Star (A) Case Solution stores. These stores with a low requirement of funds to settle would enable the business to reach international markets, without ending its domestic stores. The benefits and drawbacks of option 2 are offered as follows;

Pros:

• Low investment
• Decreasing competition hazard
• Access to the world markets
• Increasing the size of consumer base
• Easy to manage
• Large Earnings
• Low Operating Costs
• Easy new market entrance

Cons:

• Threat to the market position
• Removal of brand name Individuality
• Elimination of the excellent shop experience.
• Danger of decrease in elite sales.

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

Another alternative that the business could consider, is to expand towards the worldwide markets without closing its domestic shops that contributes to the huge part of earnings of the business. The advantages and disadvantages associated with Alternative 3 are offered listed below;

Pros:

• Decreasing competitors threat
• Access to the world markets
• Increasing the size of consumer base
• Big Profits
• Exploration of new global markets.
• Boost in income from worldwide markets.
• Income diversity.
• Step towards being a strong international brand.

Cons:

• Extension of problems connected to diversity.
• Differences in cultures might resulted in a failure of the brand particularly in Asian nations.
• Low incomes at preliminary levels.
• Boost in marketing expenditures to gain market share.



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