Recommendations of National Railroad Passenger Corporation (Amtrak) Acela Financing Case Analysis

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Recommendations of National Railroad Passenger Corporation (Amtrak) Acela Financing Case Study Analysis

On the basis of above internal and external analysis of the business along with the assessment of different options, the business is recommended to consider alternative 3. As alternative 3 would enable the business to expand in international markets without any decrease in its local profits and any wear and tear of its market position. The company could pursue alternative 1 which would enable the business to focus on prospective international markets rather than the local markets but as the business is highly reliant on the local markets with 90% of its shops in the United States, there fore pursuing alternative 1 would result in the substantial decrease in company's profits.

Aletrnative-1: Expanding International Brick and Recommendations of National Railroad Passenger Corporation (Amtrak) Acela Financing Case Analysis Stores

Growth towards worldwide markets through opening brand-new stores in other Europe and Asian nations with closing domestic shops is although an excellent alternative for increasing the international existence of the company. Nevertheless, the closing of domestic stores could extremely affect the earnings of the firm as above 90% of its shops lie domestically and closing those shops would ultimately reduce the revenues of the company. The business has a long term market position in United States which can not be produced soon in the brand-new markets. The option would assist the company to broaden in international markets together with the elimination of concerns raised in its regional markets related to its diversity. The benefits and drawbacks for Option 1 are listed below;

Pros:

• Exploration of new worldwide markets.
• Boost in profits from international markets.
• Removal of issues related to diversity.
• Income diversification.
• Step towards being a strong global brand name.

Cons:

• Loss of extensive earnings from the regional markets.
• Boost in competitors.
• Differences in cultures could led to a failure of the brand name especially in Asian countries.
• Low earnings at preliminary levels.
• Boost in marketing expenditures to gain market share.

Alternative-2: Introduction of Click and Recommendations of National Railroad Passenger Corporation (Amtrak) Acela Financing Case Analysis Stores

Alternative 2 includes the introduction of online market locations through generating a proper business's site. With the increased trends towards online shopping, the online stores like Amazon, Alibaba and so on could pose a severe hazard to the market share of company. The competitors are moving towards click and Recommendations of National Railroad Passenger Corporation (Amtrak) Acela Financing Case Help stores with Space presenting Piperline. This shift towards online markets could reduce the incomes for business. In this circumstance the company could consider presenting Click and Recommendations of National Railroad Passenger Corporation (Amtrak) Acela Financing Case Analysis shops. These shops with a low requirement of funds to settle would make it possible for the company to reach international markets, without ending its domestic shops. The pros and cons of alternative 2 are provided as follows;

Pros:

• Low investment
• Lowering competitors hazard
• Access to the world markets
• Expanding consumer base
• Easy to handle
• Big Profits
• Low Operating Expense
• Easy new market entryway

Cons:

• Danger to the market position
• Removal of brand name Uniqueness
• Elimination of the fantastic store experience.
• Risk of decline in elite sales.

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

Another alternative that the company could consider, is to broaden towards the worldwide markets without closing its domestic shops that contributes to the major part of profits of the company. The benefits and drawbacks associated with Alternative 3 are provided below;

Pros:

• Lowering competitors hazard
• Access to the world markets
• Enlarging consumer base
• Big Incomes
• Expedition of brand-new worldwide markets.
• Boost in income from worldwide markets.
• Revenue diversification.
• Step towards being a strong worldwide brand name.

Cons:

• Continuation of problems associated with variety.
• Distinctions in cultures could led to a failure of the brand name specifically in Asian countries.
• Low revenues at preliminary levels.
• Increase in marketing expenses to get market share.



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