Recommendations of Damien Hirst And The Contemporary Art Market Case Solution

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Recommendations of Damien Hirst And The Contemporary Art Market Case Study Analysis

RecommendationsOn the basis of above internal and external analysis of the company along with the examination of different alternatives, the business is suggested to consider alternative 3. As alternative 3 would permit the business to expand in global markets without any reduction in its local revenues and any deterioration of its market position. By thinking about Alternative 3, the business might keep its shop experience and brand name individuality. It could likewise think about alternative 2 that might enable the company to access the markets without any prospective financial investment. The company might pursue alternative 1 which would allow the business to focus on prospective global markets rather than the regional markets however as the business is extremely reliant on the regional markets with 90% of its stores in the US, there fore pursuing option 1 would result in the substantial decrease in business's earnings. Therefore, the business is advised to think about alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of Damien Hirst And The Contemporary Art Market Case Solution Stores

International SegmentsGrowth towards international markets through opening new stores in other Europe and Asian nations with closing domestic stores is although a good choice for increasing the worldwide existence of the company. However, the closing of domestic shops could highly impact the profits of the firm as above 90% of its shops lie locally and closing those shops would eventually lower the incomes of the company. The company has a long term market position in US which can not be produced quickly in the new markets. The choice would help the business to broaden in global markets along with the elimination of problems raised in its local markets connected to its diversity. The benefits and drawbacks for Option 1 are listed below;

Pros:

• Exploration of new worldwide markets.
• Boost in income from global markets.
• Removal of concerns connected to variety.
• Income diversity.
• Action towards being a strong international brand.

Cons:

• Loss of comprehensive earnings from the local markets.
• Increase in competitors.
• Differences in cultures could led to a failure of the brand particularly in Asian countries.
• Low earnings at preliminary levels.
• Increase in marketing expenditures to gain market share.

Alternative-2: Introduction of Click and Recommendations of Damien Hirst And The Contemporary Art Market Case Solution Stores

Alternative 2 includes the introduction of online market places through creating a correct company's website. With the increased patterns towards online shopping, the online shops like Amazon, Alibaba etc. might position a serious risk to the marketplace share of business. The rivals are moving towards click and Recommendations of Damien Hirst And The Contemporary Art Market Case Solution stores with Gap presenting Piperline. This shift towards online markets could lower the profits for company. In this scenario the company might think about introducing Click and Recommendations of Damien Hirst And The Contemporary Art Market 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 stores. The advantages and disadvantages of option 2 are offered as follows;

Pros:

• Low investment
• Minimizing competition danger
• Access to the world markets
• Enlarging consumer base
• Easy to handle
• Large Profits
• Low Operating Expense
• Easy new market entrance

Cons:

• Threat to the market position
• Removal of brand name Individuality
• Removal of the great store experience.
• Risk of decline in elite sales.

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

Another alternative that the business could consider, is to broaden towards the worldwide markets without closing its domestic shops that contributes to the major part of incomes of the business. The pros and cons associated with Alternative 3 are offered below;

Pros:

• Decreasing competitors risk
• Access to the world markets
• Enlarging customer base
• Big Profits
• Expedition of new international markets.
• Increase in income from global markets.
• Earnings diversity.
• Step towards being a strong worldwide brand.

Cons:

• Continuation of concerns related to variety.
• Distinctions in cultures might caused a failure of the brand name particularly in Asian countries.
• Low earnings at initial levels.
• Boost in marketing expenditures to acquire market share.



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