Recommendations of Eastern Airlines Bankruptcy (C): The Ritchie Group Case Solution

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Recommendations of Eastern Airlines Bankruptcy (C): The Ritchie Group Case Study Analysis

On the basis of above internal and external analysis of the company along with the assessment of different options, the company is recommended to consider alternative 3. As alternative 3 would permit the business to expand in international markets without any reduction in its local profits and any deterioration of its market position. The business might pursue alternative 1 which would allow the business to focus on possible international markets rather than the regional markets however as the business is highly reliant on the regional markets with 90% of its shops in the United States, there fore pursuing option 1 would result in the substantial decline in business's income.

Aletrnative-1: Expanding International Brick and Recommendations of Eastern Airlines Bankruptcy (C): The Ritchie Group Case Analysis Stores

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 worldwide markets along with the elimination of problems raised in its local markets related to its diversity.

Pros:

• Expedition of new international markets.
• Increase in revenue from international markets.
• Elimination of concerns associated with diversity.
• Earnings diversity.
• Step towards being a strong global brand.

Cons:

• Loss of comprehensive incomes from the regional markets.
• Boost in competitors.
• Distinctions in cultures might led to a failure of the brand specifically in Asian countries.
• Low profits at preliminary levels.
• Increase in marketing expenses to gain market share.

Alternative-2: Introduction of Click and Recommendations of Eastern Airlines Bankruptcy (C): The Ritchie Group Case Solution Stores

Alternative 2 includes the introduction of online market locations through producing an appropriate business's site. With the increased trends towards online shopping, the online shops like Amazon, Alibaba etc. could posture a serious danger to the market share of company. Additionally, the rivals are shifting towards click and Recommendations of Eastern Airlines Bankruptcy (C): The Ritchie Group Case Solution shops with Space presenting Piperline. This shift towards online markets could decrease the incomes for business. In this situation the company could think about presenting Click and Recommendations of Eastern Airlines Bankruptcy (C): The Ritchie Group Case Analysis stores. These stores with a low requirement of funds to settle would make it possible for the company to reach international markets, without ending its domestic stores. The benefits and drawbacks of alternative 2 are provided as follows;

Pros:

• Low investment
• Decreasing competitors hazard
• Access to the world markets
• Enlarging consumer base
• Easy to manage
• Large Revenues
• Low Operating Costs
• Easy brand-new market entryway

Cons:

• Hazard to the marketplace position
• Elimination of brand Originality
• Elimination of the terrific shop experience.
• Risk of decrease in elite sales.

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

Another alternative that the business could consider, is to expand towards the international markets without closing its domestic stores that contributes to the huge part of incomes of the business. The pros and cons related to Alternative 3 are provided below;

Pros:

• Minimizing competition hazard
• Access to the world markets
• Increasing the size of customer base
• Large Incomes
• Expedition of new international markets.
• Boost in profits from worldwide markets.
• Earnings diversification.
• Step towards being a strong global brand name.

Cons:

• Continuation of issues connected to variety.
• Differences in cultures might resulted in a failure of the brand particularly in Asian countries.
• Low revenues at preliminary levels.
• Boost in marketing expenditures to gain market share.



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