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

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

On the basis of above internal and external analysis of the company along with the evaluation of different options, the company is suggested to consider alternative 3. As alternative 3 would enable the business to expand in international markets without any decrease in its local earnings and any deterioration of its market position. The company might pursue alternative 1 which would allow the company to focus on possible worldwide markets rather than the local markets but as the business is extremely reliant on the local markets with 90% of its stores in the US, there fore pursuing option 1 would result in the significant decrease in company's revenue.

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

Expansion towards global markets through opening new stores in other Europe and Asian countries with closing domestic shops is although an excellent option for increasing the worldwide existence of the business. However, the closing of domestic stores could extremely affect the earnings of the firm as above 90% of its shops lie domestically 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 produced quickly in the brand-new markets. The alternative would assist the business to broaden in global markets along with the elimination of problems raised in its local markets associated with its variety. The pros and Cons for Option 1 are noted below;

Pros:

• Expedition of brand-new global markets.
• Increase in earnings from global markets.
• Elimination of issues connected to diversity.
• Income diversity.
• Step towards being a strong global brand name.

Cons:

• Loss of comprehensive incomes from the regional markets.
• Increase in competition.
• Distinctions in cultures might led to a failure of the brand name especially in Asian nations.
• Low revenues at initial levels.
• Boost in marketing expenditures to acquire market share.

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

Alternative 2 consists of the intro of online market places through generating a correct company's site. With the increased trends towards online shopping, the online shops like Amazon, Alibaba and so on could present a serious risk to the marketplace share of business. Moreover, the rivals are moving towards click and Recommendations of Justin Wilson Plc: Financing A Rising Formula One Star (B) Case Analysis shops with Gap introducing Piperline. This shift towards online markets could decrease the earnings for company. In this situation the business might think about introducing Click and Recommendations of Justin Wilson Plc: Financing A Rising Formula One Star (B) Case Analysis shops. These stores with a low requirement of funds to settle would make it possible for the company to reach global markets, without ending its domestic stores. The pros and cons of alternative 2 are offered as follows;

Pros:

• Low financial investment
• Minimizing competitors hazard
• Access to the world markets
• Expanding customer base
• Easy to handle
• Large Revenues
• Low Operating Expense
• Easy brand-new market entrance

Cons:

• Hazard to the marketplace position
• Elimination of brand Originality
• Removal of the great shop experience.
• Threat of decrease in elite sales.

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

Another alternative that the company might consider, is to broaden towards the worldwide markets without closing its domestic stores that contributes to the huge part of profits of the business. The advantages and disadvantages connected to Alternative 3 are offered below;

Pros:

• Reducing competition risk
• Access to the world markets
• Enlarging consumer base
• Large Profits
• Expedition of brand-new worldwide markets.
• Boost in profits from worldwide markets.
• Profits diversity.
• Step towards being a strong worldwide brand name.

Cons:

• Continuation of problems related to diversity.
• Distinctions in cultures could caused a failure of the brand name especially in Asian countries.
• Low incomes at initial levels.
• Increase in marketing expenditures to get market share.



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