Recommendations of Rusagro: Growing Against The Odds Case Help

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Recommendations of Rusagro: Growing Against The Odds Case Study Help

On the basis of above internal and external analysis of the company along with the assessment of different options, the business is advised to think about alternative 3. As alternative 3 would allow the business to broaden in global markets without any reduction in its local earnings and any degeneration of its market position. The business might pursue alternative 1 which would allow the company to focus on potential international markets rather than the regional markets but as the company is highly dependent on the regional markets with 90% of its shops in the United States, there fore pursuing alternative 1 would result in the substantial decrease in company's income.

Aletrnative-1: Expanding International Brick and Recommendations of Rusagro: Growing Against The Odds Case Help Stores

Expansion towards worldwide markets through opening brand-new shops in other Europe and Asian countries with closing domestic shops is although a great choice for increasing the worldwide presence of the company. However, the closing of domestic shops could extremely affect the revenues of the firm as above 90% of its stores lie domestically and closing those stores would ultimately decrease the revenues of the firm. The business has a long term market position in United States which can not be generated soon in the new markets. The option would help the company to expand in global markets along with the removal of issues raised in its local markets connected to its diversity. The pros and Cons for Option 1 are listed below;

Pros:

• Exploration of new worldwide markets.
• Increase in profits from worldwide markets.
• Elimination of problems connected to variety.
• Profits diversification.
• Step towards being a strong global brand.

Cons:

• Loss of comprehensive incomes from the regional markets.
• Boost in competition.
• Differences in cultures could resulted in a failure of the brand name particularly in Asian countries.
• Low revenues at preliminary levels.
• Increase in marketing expenses to get market share.

Alternative-2: Introduction of Click and Recommendations of Rusagro: Growing Against The Odds Case Analysis Stores

Alternative 2 consists of the intro of online market locations through producing a proper company's site. With the increased patterns towards online shopping, the online stores like Amazon, Alibaba and so on could position a serious hazard to the market share of business. The rivals are shifting towards click and Recommendations of Rusagro: Growing Against The Odds Case Help stores with Space presenting Piperline. This shift towards online markets could lower the incomes for company. In this circumstance the business could think about introducing Click and Recommendations of Rusagro: Growing Against The Odds Case Solution stores. These shops with a low requirement of funds to settle would make it possible for the business to reach international markets, without ending its domestic shops. The benefits and drawbacks of option 2 are offered as follows;

Pros:

• Low investment
• Minimizing competitors danger
• Access to the world markets
• Increasing the size of customer base
• Easy to handle
• Big Profits
• Low Operating Expense
• Easy brand-new market entryway

Cons:

• Danger to the marketplace position
• Removal of brand Originality
• Elimination of the excellent shop experience.
• Danger of decrease in elite sales.

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

Another option that the business might consider, is to broaden towards the worldwide markets without closing its domestic stores that contributes to the huge part of incomes of the company. The pros and cons associated with Alternative 3 are provided below;

Pros:

• Lowering competitors risk
• Access to the world markets
• Enlarging consumer base
• Big Earnings
• Expedition of brand-new worldwide markets.
• Boost in revenue from international markets.
• Revenue diversification.
• Action towards being a strong international brand name.

Cons:

• Extension of concerns related to variety.
• Differences in cultures could resulted in a failure of the brand specifically in Asian nations.
• Low incomes at initial levels.
• Boost in marketing expenses to get market share.



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