Recommendations of Prime Forestry Group And Precious Woods (A) And (B) Case Solution

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Recommendations of Prime Forestry Group And Precious Woods (A) And (B) Case Study Help

On the basis of above internal and external analysis of the company along with the assessment of different options, the company is advised to think about alternative 3. As alternative 3 would enable the company to broaden in global markets without any decrease in its regional revenues and any wear and tear of its market position. The business might pursue alternative 1 which would allow the company to focus on possible global markets rather than the local markets but as the business is highly reliant on the local markets with 90% of its stores in the United States, there fore pursuing option 1 would result in the considerable decrease in business's profits.

Aletrnative-1: Expanding International Brick and Recommendations of Prime Forestry Group And Precious Woods (A) And (B) Case Solution Stores

Growth towards worldwide markets through opening brand-new stores in other Europe and Asian countries with closing domestic shops is although a great alternative for increasing the global presence of the business. The closing of domestic stores could highly impact the earnings of the company as above 90% of its shops are located domestically and closing those stores would eventually reduce the revenues of the company. Furthermore, the company has a long term market position in US which can not be produced quickly in the brand-new markets. The choice would assist the company to expand in global markets in addition to the elimination of concerns raised in its local markets connected to its diversity. The advantages and disadvantages for Option 1 are listed below;

Pros:

• Exploration of brand-new global markets.
• Increase in earnings from international markets.
• Removal of issues connected to variety.
• Income diversity.
• Step towards being a strong global brand name.

Cons:

• Loss of substantial profits from the regional markets.
• Increase in competitors.
• Distinctions in cultures could resulted in a failure of the brand name specifically in Asian nations.
• Low profits at initial levels.
• Increase in marketing expenses to gain market share.

Alternative-2: Introduction of Click and Recommendations of Prime Forestry Group And Precious Woods (A) And (B) Case Help Stores

With the increased patterns towards online shopping, the online shops like Amazon, Alibaba etc. might position a serious threat to the market share of business. In this situation the company might consider presenting Click and Recommendations of Prime Forestry Group And Precious Woods (A) And (B) Case Analysis stores. These stores with a low requirement of funds to settle would enable the company to reach global markets, without ending its domestic stores.

Pros:

• Low financial investment
• Reducing competition threat
• Access to the world markets
• Increasing the size of customer base
• Easy to manage
• Big Earnings
• Low Operating Costs
• Easy new market entrance

Cons:

• Risk to the market position
• Elimination of brand name Originality
• Elimination of the excellent store experience.
• Threat of decrease in elite sales.

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

Another alternative that the company could consider, is to broaden towards the international markets without closing its domestic shops that contributes to the major part of profits of the business. The advantages and disadvantages associated with Alternative 3 are given listed below;

Pros:

• Lowering competitors danger
• Access to the world markets
• Enlarging customer base
• Large Earnings
• Expedition of new international markets.
• Boost in profits from international markets.
• Earnings diversity.
• Step towards being a strong international brand.

Cons:

• Continuation of issues related to variety.
• Differences in cultures could caused a failure of the brand name particularly in Asian countries.
• Low incomes at initial levels.
• Boost in marketing expenses to acquire market share.



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