Recommendations of E Procurement At Cathay Pacific Airways E Business Valuation Case Solution

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Recommendations of E Procurement At Cathay Pacific Airways E Business Valuation Case Study Help

On the basis of above internal and external analysis of the company along with the evaluation of various options, the company is advised to consider alternative 3. As alternative 3 would allow the company to expand in worldwide markets without any reduction in its regional incomes and any degeneration of its market position. The business could pursue alternative 1 which would enable the company to focus on prospective global markets rather than the local markets however as the company is highly dependent on the regional markets with 90% of its shops in the US, there fore pursuing alternative 1 would result in the substantial decline in business's revenue.

Aletrnative-1: Expanding International Brick and Recommendations of E Procurement At Cathay Pacific Airways E Business Valuation Case Help Stores

Expansion towards international markets through opening new stores in other Europe and Asian nations with closing domestic shops is although an excellent alternative for increasing the international presence of the company. The closing of domestic stores could extremely affect the incomes of the firm as above 90% of its shops are situated domestically and closing those shops would ultimately lower the revenues of the firm. Furthermore, the business has a long term market position in United States which can not be produced soon in the new markets. The alternative would assist the company to broaden in global markets together with the removal of issues raised in its local markets associated with its variety. The advantages and disadvantages for Option 1 are listed below;

Pros:

• Exploration of new international markets.
• Increase in revenue from international markets.
• Removal of issues associated with diversity.
• Revenue diversification.
• Step towards being a strong global brand name.

Cons:

• Loss of substantial earnings from the regional markets.
• Boost in competitors.
• Differences in cultures might led to a failure of the brand particularly in Asian countries.
• Low incomes at preliminary levels.
• Boost in marketing expenses to acquire market share.

Alternative-2: Introduction of Click and Recommendations of E Procurement At Cathay Pacific Airways E Business Valuation Case Analysis Stores

Alternative 2 includes the intro of online market locations through generating a proper business's website. With the increased trends towards online shopping, the online shops like Amazon, Alibaba etc. might present a severe risk to the marketplace share of business. The rivals are moving towards click and Recommendations of E Procurement At Cathay Pacific Airways E Business Valuation Case Help stores with Gap presenting Piperline. This shift towards online markets might decrease the incomes for business. In this circumstance the company might think about presenting Click and Recommendations of E Procurement At Cathay Pacific Airways E Business Valuation Case Help shops. These shops with a low requirement of funds to settle would enable the company to reach global markets, without ending its domestic stores. The pros and cons of option 2 are offered as follows;

Pros:

• Low investment
• Decreasing competitors danger
• Access to the world markets
• Expanding customer base
• Easy to handle
• Big Incomes
• Low Operating Costs
• Easy new market entryway

Cons:

• Hazard to the market position
• Removal of brand Uniqueness
• Elimination of the terrific 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 expand towards the worldwide markets without closing its domestic shops that adds to the major part of revenues of the business. The pros and cons related to Alternative 3 are provided below;

Pros:

• Lowering competition risk
• Access to the world markets
• Increasing the size of customer base
• Large Revenues
• Expedition of new global markets.
• Boost in revenue from global markets.
• Profits diversification.
• Action towards being a strong worldwide brand.

Cons:

• Extension of problems associated with variety.
• Distinctions in cultures might led to a failure of the brand name specifically in Asian nations.
• Low incomes at initial levels.
• Increase in marketing expenses to gain market share.



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