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Socratix Case Study 2

The questions asked are:
1. What is your Strategy & action Plan for geographic expansion for Aaron’s within the U.S?
2. A) Should Aaron expand internationally?
b) if Aaron was to go for international expansion, what are the key things they must keep in mind or do?
3. Could rent-to-own work for goods beyond basic durable household items? Should Aaron offer additional products and service offerings/
4. In terms of growth, Loudermilk (CEO) viewed managerial talent as Aaron’s primary constraint. How they address this issue?

To analyze the questions asked and give logical and effective answers it is important to first understand the Rent-to-Own industry per say as well as find out what are the Strength and
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In many developing countries the employment laws are restrictive and there is lack of regulations regarding consumer transactions.
2. Unexplored markets have high percentage of Risk factors e.g. Peru where the business didn’t take off.
3. European Economy is facing huge debt crisis except for countries like Germany.
4. Countries like China and India have huge population and other South Asian Countries are turning into manufacturing hubs thus the profit margins may decline.
Social: The social analysis is as follows:
1. Huge criticism by Consumer Advocates inside U.S. due to Regressive Cross-subsidy.
2. Consumer Driven Markets in the U.S. which gives rise to growth and profitability.
3. Aarons have moderate collections ways which enable to be ahead of its competitors
4. Asking for references of Mother and other family members during transactions which give better success rate in recovery in case of default of payments.
5. Helping people with bad credit to acquire/use household durable products.
6. Good growth opportunities in developing countries where high income wage bracket population is low.
Legal: This factor has also been categorized in two parts which are as follows; In U.S.
1. No regulatory law at the Federal Level thus posing an indefinite threat.
2. Every state having its own laws and regulations wherein 47 states have passed legislations classifying Rent to Own transactions as lease transactions and established disclosure requirements,