Recommendations of Louis Robert (C): July 1995 Case Help

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Recommendations of Louis Robert (C): July 1995 Case Study Help

On the basis of above internal and external analysis of the company in addition to the evaluation of numerous alternatives, the company is recommended to consider alternative 3. As alternative 3 would enable the company to expand in worldwide markets without any decrease in its regional revenues and any wear and tear of its market position. By thinking about Alternative 3, the business might keep its shop experience and brand uniqueness. It might also think about alternative 2 that might permit the business to access the markets without any possible financial investment. Although, the company could pursue alternative 1 which would allow the business to concentrate on prospective international markets instead of the regional markets however as the company is highly based 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 company's earnings. For that reason, the company is advised to consider alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of Louis Robert (C): July 1995 Case Solution Stores

Growth towards international markets through opening brand-new shops in other Europe and Asian nations with closing domestic stores is although a great option for increasing the worldwide presence of the company. The closing of domestic stores might highly impact the revenues of the company as above 90% of its stores are located locally and closing those shops would ultimately lower the earnings of the firm. The company has a long term market position in United States which can not be produced soon in the brand-new markets. The alternative would help the company to broaden in global markets in addition to the removal of concerns raised in its regional markets connected to its diversity. The benefits and drawbacks for Option 1 are noted below;

Pros:

• Exploration of new global markets.
• Boost in profits from international markets.
• Elimination of problems associated with diversity.
• Profits diversity.
• Step towards being a strong international brand.

Cons:

• Loss of substantial incomes from the regional markets.
• Increase in competition.
• Distinctions in cultures might led to a failure of the brand particularly in Asian countries.
• Low revenues at initial levels.
• Increase in marketing expenses to gain market share.

Alternative-2: Introduction of Click and Recommendations of Louis Robert (C): July 1995 Case Help Stores

With the increased patterns towards online shopping, the online shops like Amazon, Alibaba etc. might pose an extreme danger to the market share of company. In this scenario the business could think about introducing Click and Recommendations of Louis Robert (C): July 1995 Case Solution stores. These stores with a low requirement of funds to settle would allow the business to reach global markets, without ending its domestic shops.

Pros:

• Low investment
• Reducing competitors risk
• Access to the world markets
• Increasing the size of consumer base
• Easy to manage
• Large Revenues
• Low Operating Expense
• Easy brand-new market entryway

Cons:

• Danger to the market position
• Removal of brand Uniqueness
• Elimination of the terrific shop experience.
• Danger of decline in elite sales.

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

Another alternative that the company might consider, is to expand towards the worldwide markets without closing its domestic shops that contributes to the major part of revenues of the business. The pros and cons connected to Alternative 3 are offered listed below;

Pros:

• Lowering competitors danger
• Access to the world markets
• Expanding consumer base
• Large Profits
• Expedition of new international markets.
• Increase in income from global markets.
• Profits diversification.
• Step towards being a strong worldwide brand.

Cons:

• Continuation of concerns connected to diversity.
• Distinctions in cultures could resulted in a failure of the brand name especially in Asian countries.
• Low incomes at preliminary levels.
• Boost in marketing expenditures to acquire market share.



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