Recommendations of Af-Klm Ruling The Skies Case Analysis

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Recommendations of Af-Klm Ruling The Skies Case Study Analysis

On the basis of above internal and external analysis of the business along with the examination of various options, the business is suggested to consider alternative 3. As alternative 3 would allow the company to broaden in worldwide markets with no reduction in its regional incomes and any wear and tear of its market position. By thinking about Alternative 3, the business could maintain its shop experience and brand uniqueness. It could also consider alternative 2 that might allow the business to access the markets without any prospective financial investment. The company could pursue alternative 1 which would make it possible for the company to focus on possible worldwide markets rather than the local markets but as the company is highly dependent on the local markets with 90% of its shops in the United States, there fore pursuing alternative 1 would result in the considerable decrease in business's income. The business is suggested to consider alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of Af-Klm Ruling The Skies Case Solution Stores

Growth towards international markets through opening brand-new stores in other Europe and Asian countries with closing domestic shops is although an excellent choice for increasing the global existence of the business. The closing of domestic shops might extremely affect the earnings of the firm as above 90% of its stores are situated domestically and closing those shops would ultimately decrease the revenues of the company. The company has a long term market position in US which can not be created soon in the brand-new markets. The alternative would assist the company to expand in international markets along with the removal of problems raised in its local markets related to its variety. The benefits and drawbacks for Option 1 are noted below;

Pros:

• Expedition of brand-new international markets.
• Boost in profits from global markets.
• Removal of issues related to variety.
• Profits diversification.
• Action towards being a strong global brand.

Cons:

• Loss of extensive incomes from the local markets.
• Increase in competitors.
• Distinctions in cultures might resulted in a failure of the brand name especially in Asian countries.
• Low revenues at preliminary levels.
• Boost in marketing expenditures to gain market share.

Alternative-2: Introduction of Click and Recommendations of Af-Klm Ruling The Skies Case Help Stores

With the increased trends towards online shopping, the online shops like Amazon, Alibaba and so on might position a serious risk to the market share of company. In this situation the business might think about introducing Click and Recommendations of Af-Klm Ruling The Skies Case Solution stores. These stores with a low requirement of funds to settle would make it possible for the business to reach global markets, without ending its domestic stores.

Pros:

• Low investment
• Minimizing competition danger
• Access to the world markets
• Expanding customer base
• Easy to handle
• Large Earnings
• Low Operating Expense
• Easy new market entrance

Cons:

• Hazard to the marketplace position
• Removal of brand name Uniqueness
• Elimination of the great store experience.
• Threat of decline in elite sales.

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

Another option that the business could think about, is to broaden towards the international markets without closing its domestic shops that contributes to the huge part of earnings of the business. The benefits and drawbacks related to Alternative 3 are given below;

Pros:

• Reducing competitors threat
• Access to the world markets
• Expanding customer base
• Large Earnings
• Expedition of brand-new global markets.
• Boost in income from global markets.
• Revenue diversity.
• Step towards being a strong international brand.

Cons:

• Extension of concerns related to variety.
• Differences in cultures could caused a failure of the brand particularly in Asian countries.
• Low profits at preliminary levels.
• Boost in marketing expenses to acquire market share.



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