Recommendations of Eastern Airlines Bankruptcy (B): The Unions Case Analysis

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Recommendations of Eastern Airlines Bankruptcy (B): The Unions Case Study Analysis

On the basis of above internal and external analysis of the business along with the examination of numerous options, the business is suggested to consider alternative 3. As alternative 3 would permit the company to broaden in worldwide markets without any decrease in its regional earnings and any degeneration of its market position. The company could pursue alternative 1 which would enable the business to focus on possible worldwide markets rather than the local markets however as the company is extremely reliant on the local markets with 90% of its stores in the US, there fore pursuing option 1 would result in the significant decline in business's revenue.

Aletrnative-1: Expanding International Brick and Recommendations of Eastern Airlines Bankruptcy (B): The Unions Case Analysis Stores

The business has a long term market position in United States which can not be generated soon in the brand-new markets. The option would assist the business to broaden in global markets along with the elimination of problems raised in its regional markets related to its variety.

Pros:

• Exploration of new global markets.
• Boost in earnings from international markets.
• Removal of issues associated with variety.
• Income diversity.
• Action towards being a strong global brand name.

Cons:

• Loss of extensive incomes from the regional markets.
• Increase in competition.
• Distinctions in cultures might resulted in a failure of the brand name specifically in Asian nations.
• Low earnings at preliminary levels.
• Increase in marketing expenses to acquire market share.

Alternative-2: Introduction of Click and Recommendations of Eastern Airlines Bankruptcy (B): The Unions Case Analysis Stores

With the increased patterns towards online shopping, the online stores like Amazon, Alibaba etc. could pose a severe danger to the market share of company. In this circumstance the business could consider introducing Click and Recommendations of Eastern Airlines Bankruptcy (B): The Unions Case Analysis shops. 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 investment
• Reducing competition risk
• Access to the world markets
• Expanding consumer base
• Easy to manage
• Big Profits
• Low Operating Costs
• Easy brand-new market entrance

Cons:

• Threat to the marketplace position
• Removal of brand Originality
• Elimination 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 company could think about, is to broaden towards the global markets without closing its domestic stores that adds to the huge part of profits of the company. The advantages and disadvantages related to Alternative 3 are provided listed below;

Pros:

• Reducing competitors danger
• Access to the world markets
• Increasing the size of consumer base
• Big Earnings
• Exploration of new worldwide markets.
• Boost in income from worldwide markets.
• Revenue diversity.
• Step towards being a strong worldwide brand.

Cons:

• Extension of problems related to variety.
• Differences in cultures could caused a failure of the brand especially in Asian countries.
• Low incomes at preliminary levels.
• Boost in marketing expenses to gain market share.



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