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

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

RecommendationsOn the basis of above internal and external analysis of the business along with the evaluation of numerous alternatives, the company is recommended to consider alternative 3. As alternative 3 would permit the company to broaden in international markets without any reduction in its local revenues and any deterioration of its market position. The business could pursue alternative 1 which would enable the business to focus on potential worldwide markets rather than the regional markets however as the company is extremely dependent on the local markets with 90% of its stores in the United States, there fore pursuing option 1 would result in the considerable decrease in business's revenue.

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

International SegmentsGrowth towards worldwide markets through opening new shops in other Europe and Asian nations with closing domestic shops is although a great option for increasing the international existence of the business. The closing of domestic shops might highly impact the revenues of the company as above 90% of its shops are located locally and closing those stores would ultimately minimize the revenues of the firm. Additionally, the company has a long term market position in US which can not be produced soon in the brand-new markets. The alternative would help the business to broaden in global markets together with the elimination of issues raised in its regional markets associated with its variety. The pros and Cons for Alternative 1 are noted below;

Pros:

• Exploration of new international markets.
• Increase in revenue from international markets.
• Elimination of problems connected to diversity.
• Profits diversity.
• Step towards being a strong international brand.

Cons:

• Loss of comprehensive profits from the local markets.
• Increase in competition.
• Differences in cultures could caused a failure of the brand name specifically in Asian countries.
• Low earnings at initial levels.
• Boost in marketing expenditures to get market share.

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

Alternative 2 includes the intro of online market locations through producing a correct company's website. With the increased trends towards online shopping, the online shops like Amazon, Alibaba etc. could pose a severe danger to the market share of company. The rivals are moving towards click and Recommendations of National Railroad Passenger Corporation (Amtrak): Acela Financing Case Solution stores with Gap presenting Piperline. This shift towards online markets could reduce the earnings for company. In this situation the business might think about introducing Click and Recommendations of National Railroad Passenger Corporation (Amtrak): Acela Financing Case Help shops. These shops with a low requirement of funds to settle would allow the company to reach global markets, without ending its domestic stores. The benefits and drawbacks of option 2 are offered as follows;

Pros:

• Low investment
• Minimizing competition danger
• Access to the world markets
• Increasing the size of consumer base
• Easy to manage
• Large Revenues
• Low Operating Expense
• Easy brand-new market entryway

Cons:

• Hazard to the marketplace position
• Removal of brand name Individuality
• Removal of the fantastic store experience.
• Threat of decrease in elite sales.

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

Another choice that the company could consider, is to broaden towards the worldwide markets without closing its domestic stores that adds to the huge part of profits of the company. The pros and cons connected to Alternative 3 are offered listed below;

Pros:

• Reducing competitors hazard
• Access to the world markets
• Expanding consumer base
• Big Earnings
• Exploration of new worldwide markets.
• Increase in profits from global markets.
• Revenue diversification.
• Action towards being a strong global brand.

Cons:

• Extension of issues connected to diversity.
• Distinctions in cultures might led to a failure of the brand especially in Asian countries.
• Low revenues at initial levels.
• Boost in marketing expenditures to get market share.



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