Recommendations of Miguel Torres: Ensuring The Family Legacies Case Solution

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Recommendations of Miguel Torres: Ensuring The Family Legacies Case Study Analysis

On the basis of above internal and external analysis of the business together with the evaluation of various alternatives, the company is suggested to think about alternative 3. As alternative 3 would allow the business to broaden in global markets with no decrease in its local earnings and any wear and tear of its market position. By considering Alternative 3, the company could preserve its store experience and brand name uniqueness. However, it could likewise think about alternative 2 that might enable the company to access the marketplaces without any potential investment. The company might pursue alternative 1 which would allow the business to focus on possible worldwide markets rather than the local markets however as the business is extremely dependent on the regional markets with 90% of its stores in the US, there fore pursuing option 1 would result in the substantial decrease in business's income. For that reason, the company is advised to consider alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of Miguel Torres: Ensuring The Family Legacies Case Help Stores

Expansion towards global markets through opening brand-new stores in other Europe and Asian countries with closing domestic shops is although a good choice for increasing the worldwide existence of the business. The closing of domestic shops could highly impact the revenues of the firm as above 90% of its stores are situated domestically and closing those shops would ultimately decrease the profits of the company. Moreover, the company has a long term market position in United States which can not be produced quickly in the new markets. The choice would help the company to expand in global markets in addition to the removal of problems raised in its regional markets associated with its diversity. The advantages and disadvantages for Alternative 1 are noted below;

Pros:

• Exploration of brand-new global markets.
• Increase in profits from international markets.
• Removal of concerns related to diversity.
• Revenue diversification.
• Step towards being a strong worldwide brand name.

Cons:

• Loss of substantial earnings from the local markets.
• Boost in competition.
• Differences in cultures could caused a failure of the brand especially in Asian nations.
• Low earnings at preliminary levels.
• Boost in marketing expenditures to get market share.

Alternative-2: Introduction of Click and Recommendations of Miguel Torres: Ensuring The Family Legacies Case Help Stores

With the increased patterns towards online shopping, the online stores like Amazon, Alibaba and so on might present a severe hazard to the market share of company. In this circumstance the business could think about introducing Click and Recommendations of Miguel Torres: Ensuring The Family Legacies Case Analysis shops. These shops 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
• Reducing competition hazard
• Access to the world markets
• Increasing the size of customer base
• Easy to handle
• Big Revenues
• Low Operating Expense
• Easy brand-new market entrance

Cons:

• Risk to the marketplace position
• Removal of brand name Originality
• Elimination of the excellent shop experience.
• Risk of decline in elite sales.

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

Another option that the business could consider, is to expand towards the worldwide markets without closing its domestic stores that adds to the huge part of profits of the business. The advantages and disadvantages connected to Alternative 3 are offered listed below;

Pros:

• Reducing competition risk
• Access to the world markets
• Enlarging customer base
• Big Revenues
• Exploration of brand-new international markets.
• Increase in profits from worldwide markets.
• Earnings diversity.
• Step towards being a strong international brand name.

Cons:

• Continuation of concerns connected to diversity.
• Differences in cultures might resulted in a failure of the brand specifically in Asian nations.
• Low earnings at initial levels.
• Increase in marketing expenses to gain market share.



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