Recommendations of Frontier Services Group: Building A Pan African Logistics Provider (A) Case Analysis

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Recommendations of Frontier Services Group: Building A Pan African Logistics Provider (A) Case Study Solution

On the basis of above internal and external analysis of the business along with the evaluation of various alternatives, the business is recommended to think about alternative 3. As alternative 3 would allow the business to broaden in international markets without any reduction in its regional profits and any deterioration of its market position. The business might pursue alternative 1 which would allow the business to focus on prospective international markets rather than the local markets but as the company is extremely reliant on the local markets with 90% of its stores in the United States, there fore pursuing alternative 1 would result in the considerable decrease in business's revenue.

Aletrnative-1: Expanding International Brick and Recommendations of Frontier Services Group: Building A Pan African Logistics Provider (A) Case Help Stores

Growth towards global markets through opening brand-new stores in other Europe and Asian countries with closing domestic stores is although an excellent alternative for increasing the worldwide existence of the company. The closing of domestic stores might highly impact the profits of the company as above 90% of its stores are situated domestically and closing those stores would eventually decrease the incomes of the firm. The business has a long term market position in US which can not be produced soon in the new markets. The alternative would help the business to broaden in worldwide markets in addition to the removal of problems raised in its regional markets related to its diversity. The benefits and drawbacks for Alternative 1 are listed below;

Pros:

• Exploration of new global markets.
• Increase in revenue from worldwide markets.
• Elimination of problems associated with variety.
• Profits diversification.
• Action towards being a strong international brand.

Cons:

• Loss of substantial incomes from the regional markets.
• Increase in competition.
• Distinctions in cultures might caused a failure of the brand name especially in Asian nations.
• Low revenues at initial levels.
• Boost in marketing expenses to acquire market share.

Alternative-2: Introduction of Click and Recommendations of Frontier Services Group: Building A Pan African Logistics Provider (A) Case Analysis Stores

With the increased patterns towards online shopping, the online shops like Amazon, Alibaba and so on could present a serious risk to the market share of business. In this circumstance the business might think about introducing Click and Recommendations of Frontier Services Group: Building A Pan African Logistics Provider (A) Case Analysis shops. 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
• Decreasing competition hazard
• Access to the world markets
• Enlarging customer base
• Easy to handle
• Big Earnings
• Low Operating Expense
• Easy new market entryway

Cons:

• Risk to the market position
• Elimination of brand Individuality
• Elimination of the fantastic shop experience.
• Risk of decline in elite sales.

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

Another alternative that the business might think about, is to broaden towards the international markets without closing its domestic stores that contributes to the huge part of earnings of the company. The benefits and drawbacks associated with Alternative 3 are given below;

Pros:

• Reducing competitors threat
• Access to the world markets
• Increasing the size of customer base
• Big Earnings
• Exploration of new global markets.
• Boost in profits from worldwide markets.
• Earnings diversification.
• Step towards being a strong international brand.

Cons:

• Extension of concerns associated with diversity.
• Distinctions in cultures might resulted in a failure of the brand especially in Asian nations.
• Low incomes at preliminary levels.
• Increase in marketing expenses to gain market share.



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