Recommendations of Eastern Airlines Bankruptcy Negotiation Exercise Case Analysis

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Recommendations of Eastern Airlines Bankruptcy Negotiation Exercise Case Study Analysis

On the basis of above internal and external analysis of the company along with the examination of numerous options, the company is recommended to consider alternative 3. As alternative 3 would permit the company to expand in global markets without any decrease in its regional incomes and any deterioration of its market position. The business might pursue alternative 1 which would enable the business to focus on potential global markets rather than the local markets however as the business is highly reliant on the regional markets with 90% of its stores in the United States, there fore pursuing alternative 1 would result in the considerable decrease in business's profits.

Aletrnative-1: Expanding International Brick and Recommendations of Eastern Airlines Bankruptcy Negotiation Exercise Case Solution Stores

The company has a long term market position in United States which can not be produced soon in the brand-new markets. The option would help the business to expand in worldwide markets along with the elimination of issues raised in its local markets related to its diversity.

Pros:

• Exploration of brand-new international markets.
• Boost in income from global markets.
• Removal of problems connected to variety.
• Revenue diversity.
• Step towards being a strong worldwide brand name.

Cons:

• Loss of substantial incomes from the local markets.
• Increase in competition.
• Differences in cultures might resulted in a failure of the brand specifically in Asian nations.
• Low profits at preliminary levels.
• Boost in marketing expenditures to acquire market share.

Alternative-2: Introduction of Click and Recommendations of Eastern Airlines Bankruptcy Negotiation Exercise Case Analysis Stores

Alternative 2 consists of the introduction of online market locations through generating a proper company's website. With the increased patterns towards online shopping, the online stores like Amazon, Alibaba and so on might present a serious threat to the marketplace share of company. Moreover, the competitors are shifting towards click and Recommendations of Eastern Airlines Bankruptcy Negotiation Exercise Case Solution shops with Gap introducing Piperline. This shift towards online markets might reduce the incomes for company. In this situation the company might think about introducing Click and Recommendations of Eastern Airlines Bankruptcy Negotiation Exercise Case Analysis shops. These shops with a low requirement of funds to settle would allow the business to reach global markets, without ending its domestic shops. The pros and cons of option 2 are offered as follows;

Pros:

• Low investment
• Lowering competition danger
• Access to the world markets
• Expanding customer base
• Easy to handle
• Big Revenues
• Low Operating Expense
• Easy new market entrance

Cons:

• Threat to the market position
• Elimination of brand name Individuality
• Elimination of the excellent store experience.
• Risk of decline in elite sales.

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

Another option that the business might consider, is to broaden towards the worldwide markets without closing its domestic shops that contributes to the major part of profits of the business. The pros and cons connected to Alternative 3 are provided below;

Pros:

• Lowering competitors danger
• Access to the world markets
• Increasing the size of consumer base
• Big Earnings
• Expedition of new global markets.
• Boost in profits from worldwide markets.
• Revenue diversity.
• Step towards being a strong international brand.

Cons:

• Continuation of issues connected to diversity.
• Differences in cultures could caused a failure of the brand particularly in Asian countries.
• Low incomes at initial levels.
• Increase in marketing expenditures to gain market share.



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