Recommendations of Diesel For Successful Living: Branding Strategies For An Up-Market Line Extension In The Fashion Industry Case Help

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Recommendations of Diesel For Successful Living: Branding Strategies For An Up-Market Line Extension In The Fashion Industry Case Study Analysis

On the basis of above internal and external analysis of the business along with the assessment of various alternatives, the company is advised to consider alternative 3. As alternative 3 would permit the business to broaden in international markets without any decrease in its regional earnings and any wear and tear of its market position. The business might pursue alternative 1 which would make it possible for the business to focus on prospective worldwide markets rather than the regional markets but as the company is highly dependent on the regional markets with 90% of its shops in the US, there fore pursuing option 1 would result in the significant decrease in company's revenue.

Aletrnative-1: Expanding International Brick and Recommendations of Diesel For Successful Living: Branding Strategies For An Up-Market Line Extension In The Fashion Industry Case Analysis Stores

Growth towards global markets through opening brand-new shops in other Europe and Asian countries with closing domestic shops is although a great alternative for increasing the global existence of the company. The closing of domestic shops could extremely affect the incomes of the firm as above 90% of its shops are situated locally and closing those shops would ultimately lower the earnings of the firm. The company has a long term market position in US which can not be generated quickly in the new markets. The alternative would assist the company to broaden in worldwide markets together with the elimination of problems raised in its regional markets related to its variety. The benefits and drawbacks for Option 1 are listed below;

Pros:

• Exploration of new international markets.
• Boost in earnings from international markets.
• Elimination of concerns associated with diversity.
• Revenue diversity.
• Action towards being a strong international brand.

Cons:

• Loss of comprehensive incomes from the regional markets.
• Increase in competition.
• Distinctions in cultures could resulted in a failure of the brand especially in Asian nations.
• Low revenues at initial levels.
• Increase in marketing expenditures to acquire market share.

Alternative-2: Introduction of Click and Recommendations of Diesel For Successful Living: Branding Strategies For An Up-Market Line Extension In The Fashion Industry Case Analysis Stores

With the increased patterns towards online shopping, the online shops like Amazon, Alibaba etc. could present a severe threat to the market share of business. In this scenario the business could think about introducing Click and Recommendations of Diesel For Successful Living: Branding Strategies For An Up-Market Line Extension In The Fashion Industry Case Analysis shops. These shops with a low requirement of funds to settle would allow the company to reach worldwide markets, without ending its domestic shops.

Pros:

• Low investment
• Decreasing competition hazard
• Access to the world markets
• Expanding customer base
• Easy to manage
• Big Revenues
• Low Operating Expense
• Easy new market entryway

Cons:

• Threat to the market position
• Removal of brand Uniqueness
• Removal of the terrific shop experience.
• Risk of decrease in elite sales.

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

Another choice that the company might think about, is to broaden towards the worldwide markets without closing its domestic shops that contributes to the huge part of revenues of the company. The pros and cons related to Alternative 3 are provided listed below;

Pros:

• Minimizing competitors hazard
• Access to the world markets
• Enlarging consumer base
• Large Earnings
• Exploration of brand-new international markets.
• Increase in earnings from global markets.
• Income diversification.
• Action towards being a strong international brand.

Cons:

• Extension of issues related to variety.
• Differences in cultures could caused a failure of the brand particularly in Asian nations.
• Low earnings at initial levels.
• Boost in marketing expenditures to get market share.



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