Recommendations of Pentland Group: A Family Of Brands Case Analysis
Recommendations of Pentland Group: A Family Of Brands Case Study Solution
On the basis of above internal and external analysis of the company along with the examination of different options, the company is suggested to think about alternative 3. As alternative 3 would permit the company to expand in global markets without any decrease in its regional earnings and any degeneration of its market position. The company might pursue alternative 1 which would make it possible for the company to focus on prospective international markets rather than the regional markets however as the company is highly dependent on the local markets with 90% of its shops in the US, there fore pursuing option 1 would result in the substantial decline in company's income.
Aletrnative-1: Expanding International Brick and Recommendations of Pentland Group: A Family Of Brands Case Solution Stores
Expansion towards worldwide markets through opening brand-new stores in other Europe and Asian countries with closing domestic shops is although a good choice for increasing the global existence of the company. However, the closing of domestic stores could extremely impact the revenues of the company as above 90% of its stores are located locally and closing those stores would eventually decrease the profits of the firm. Moreover, the business has a long term market position in United States which can not be created soon in the brand-new markets. The option would help the business to broaden in worldwide markets along with the removal of issues raised in its local markets associated with its diversity. The benefits and drawbacks for Option 1 are listed below;
• Expedition of new global markets.
• Increase in earnings from international markets.
• Elimination of problems connected to diversity.
• Revenue diversity.
• Action towards being a strong worldwide brand.
• Loss of comprehensive profits from the regional markets.
• Increase in competition.
• Distinctions in cultures might led to a failure of the brand especially in Asian countries.
• Low incomes at initial levels.
• Boost in marketing expenses to gain market share.
Alternative-2: Introduction of Click and Recommendations of Pentland Group: A Family Of Brands Case Help Stores
Alternative 2 consists of the introduction of online market places through creating an appropriate company's website. With the increased patterns towards online shopping, the online stores like Amazon, Alibaba etc. might position a serious threat to the market share of company. Moreover, the competitors are moving towards click and Recommendations of Pentland Group: A Family Of Brands Case Help stores with Gap introducing Piperline. This shift towards online markets might minimize the profits for business. In this circumstance the business could think about introducing Click and Recommendations of Pentland Group: A Family Of Brands Case Analysis shops. These shops with a low requirement of funds to settle would enable the business to reach international markets, without ending its domestic shops. The advantages and disadvantages of option 2 are given as follows;
• Low investment
• Reducing competition danger
• Access to the world markets
• Increasing the size of consumer base
• Easy to handle
• Large Revenues
• Low Operating Costs
• Easy new market entryway
• Danger to the market position
• Elimination of brand name Originality
• Removal of the great shop experience.
• Risk of decrease in elite sales.
Alternative-3: Expansion towards International Markets Without closing Domestic Stores
Another choice that the company could think about, is to broaden towards the worldwide markets without closing its domestic shops that contributes to the major part of earnings of the business. The benefits and drawbacks connected to Alternative 3 are given listed below;
• Lowering competition danger
• Access to the world markets
• Expanding consumer base
• Big Incomes
• Exploration of new worldwide markets.
• Increase in income from global markets.
• Earnings diversification.
• Step towards being a strong international brand.
• Extension of issues connected to variety.
• Distinctions in cultures could resulted in a failure of the brand specifically in Asian countries.
• Low revenues at initial levels.
• Boost in marketing expenditures to gain market share.
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