Recommendations of The New Merck: Beating The Odds (B) Case Help

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Recommendations of The New Merck: Beating The Odds (B) Case Study Solution

On the basis of above internal and external analysis of the company together with the evaluation of various alternatives, the business is suggested to consider alternative 3. As alternative 3 would enable the company to expand in international markets with no reduction in its regional incomes and any deterioration of its market position. By considering Alternative 3, the company could preserve its shop experience and brand name uniqueness. It might also consider alternative 2 that might permit the company to access the markets without any possible investment. The business could pursue alternative 1 which would enable the business to focus on prospective worldwide markets rather than the regional markets however as the company is highly dependent on the local markets with 90% of its stores in the United States, there fore pursuing alternative 1 would result in the significant decline in company's earnings. The company is suggested to think about alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of The New Merck: Beating The Odds (B) Case Analysis Stores

The business has a long term market position in United States which can not be created soon in the new markets. The option would help the business to expand in global markets along with the elimination of concerns raised in its regional markets related to its diversity.

Pros:

• Expedition of new global markets.
• Increase in income from global markets.
• Removal of issues associated with variety.
• Earnings diversification.
• Step towards being a strong global brand.

Cons:

• Loss of substantial revenues from the regional markets.
• Boost in competition.
• Distinctions in cultures might resulted in a failure of the brand name particularly in Asian nations.
• Low revenues at initial levels.
• Increase in marketing expenditures to get market share.

Alternative-2: Introduction of Click and Recommendations of The New Merck: Beating The Odds (B) Case Help Stores

With the increased trends towards online shopping, the online stores like Amazon, Alibaba etc. could position a serious risk to the market share of company. In this situation the company might think about presenting Click and Recommendations of The New Merck: Beating The Odds (B) Case Analysis 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 competition risk
• Access to the world markets
• Increasing the size of customer base
• Easy to handle
• Large Earnings
• Low Operating Expense
• Easy brand-new market entryway

Cons:

• Hazard to the market position
• Elimination of brand Individuality
• Removal of the terrific shop experience.
• Threat of decrease in elite sales.

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

Another choice that the business might think about, is to expand towards the worldwide markets without closing its domestic shops that contributes to the major part of earnings of the business. The pros and cons connected to Alternative 3 are provided below;

Pros:

• Reducing competitors danger
• Access to the world markets
• Enlarging customer base
• Big Revenues
• Exploration of new worldwide markets.
• Increase in earnings from international markets.
• Profits diversification.
• Step towards being a strong worldwide brand.

Cons:

• Extension of concerns related to diversity.
• Differences in cultures could led to a failure of the brand particularly in Asian nations.
• Low revenues at initial levels.
• Increase in marketing expenses to get market share.



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