Recommendations of British Aerospace Plc (B) Case Help

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Recommendations of British Aerospace Plc (B) Case Study Help

On the basis of above internal and external analysis of the business together with the evaluation of numerous alternatives, the company is suggested to think about alternative 3. As alternative 3 would permit the business to expand in global markets without any reduction in its local profits and any wear and tear of its market position. By considering Alternative 3, the company might keep its store experience and brand name individuality. However, it could also consider alternative 2 that might enable the business to access the markets with no prospective investment. Although, the company might pursue alternative 1 which would enable the business to concentrate on potential worldwide markets instead of the regional markets however as the company is highly depending on the local markets with 90% of its stores in the United States, there fore pursuing option 1 would lead to the considerable decrease in business's revenue. The company is recommended to consider alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of British Aerospace Plc (B) Case Analysis Stores

Expansion towards international markets through opening new stores in other Europe and Asian nations with closing domestic stores is although a great choice for increasing the international existence of the company. However, the closing of domestic shops could extremely affect the incomes of the firm as above 90% of its shops are located locally and closing those shops would eventually lower the profits of the company. Additionally, the company has a long term market position in US which can not be generated quickly in the brand-new markets. The choice would help the business to expand in international markets together with the removal of issues raised in its local markets associated with its diversity. The benefits and drawbacks for Option 1 are noted below;

Pros:

• Expedition of brand-new global markets.
• Increase in profits from worldwide markets.
• Elimination of issues connected to variety.
• Revenue diversification.
• Step towards being a strong worldwide brand name.

Cons:

• Loss of comprehensive earnings from the regional markets.
• Boost in competitors.
• Distinctions in cultures might led to a failure of the brand name 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 British Aerospace Plc (B) Case Analysis Stores

With the increased trends towards online shopping, the online shops like Amazon, Alibaba etc. might pose a serious danger to the market share of company. In this scenario the company might consider presenting Click and Recommendations of British Aerospace Plc (B) Case Analysis stores. These shops with a low requirement of funds to settle would allow the company to reach international markets, without ending its domestic shops.

Pros:

• Low financial investment
• Minimizing competition risk
• Access to the world markets
• Enlarging consumer base
• Easy to handle
• Big Earnings
• Low Operating Expense
• Easy brand-new market entrance

Cons:

• Hazard to the marketplace position
• Removal of brand Individuality
• Elimination of the excellent shop experience.
• Danger of decline in elite sales.

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

Another choice that the business might think about, is to expand towards the worldwide markets without closing its domestic shops that contributes to the major part of revenues of the company. The advantages and disadvantages connected to Alternative 3 are given listed below;

Pros:

• Decreasing competitors risk
• Access to the world markets
• Expanding customer base
• Large Profits
• Exploration of new worldwide markets.
• Boost in revenue from worldwide markets.
• Earnings diversification.
• Action towards being a strong worldwide brand.

Cons:

• Extension of problems connected to variety.
• Distinctions in cultures could led to a failure of the brand specifically in Asian nations.
• Low incomes at initial levels.
• Increase in marketing expenses to get market share.



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