Recommendations of Air France-Klm-Alitalia-Etihad Of Growth In Alliances (B) Case Solution

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Recommendations of Air France-Klm-Alitalia-Etihad Of Growth In Alliances (B) Case Study Solution

RecommendationsOn the basis of above internal and external analysis of the company along with the examination of different options, the business is recommended to think about alternative 3. As alternative 3 would enable the business to expand in worldwide markets without any decrease in its local revenues and any deterioration of its market position. The business could pursue alternative 1 which would allow the business to focus on prospective worldwide markets rather than the regional markets but as the company is extremely dependent on the regional markets with 90% of its stores in the US, there fore pursuing option 1 would result in the considerable decline in company's revenue.

Aletrnative-1: Expanding International Brick and Recommendations of Air France-Klm-Alitalia-Etihad Of Growth In Alliances (B) Case Help Stores

International SegmentsThe company has a long term market position in US which can not be generated soon in the new markets. The option would help the business to expand in global markets along with the removal of concerns raised in its local markets related to its variety.

Pros:

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

Cons:

• Loss of extensive revenues from the regional markets.
• Increase in competition.
• Distinctions in cultures could caused a failure of the brand name particularly in Asian nations.
• Low revenues at initial levels.
• Boost in marketing expenditures to gain market share.

Alternative-2: Introduction of Click and Recommendations of Air France-Klm-Alitalia-Etihad Of Growth In Alliances (B) Case Solution Stores

With the increased patterns towards online shopping, the online stores like Amazon, Alibaba etc. could posture an extreme risk to the market share of business. In this circumstance the business might think about presenting Click and Recommendations of Air France-Klm-Alitalia-Etihad Of Growth In Alliances (B) Case Solution stores. These shops with a low requirement of funds to settle would allow the company to reach international markets, without ending its domestic shops.

Pros:

• Low financial investment
• Lowering competition danger
• Access to the world markets
• Enlarging consumer base
• Easy to handle
• Big Earnings
• Low Operating Costs
• Easy new market entrance

Cons:

• Hazard to the marketplace position
• Elimination of brand name Uniqueness
• Elimination of the terrific shop experience.
• Danger 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 expand towards the international markets without closing its domestic stores that contributes to the major part of earnings of the company. The benefits and drawbacks associated with Alternative 3 are provided below;

Pros:

• Reducing competition risk
• Access to the world markets
• Enlarging customer base
• Big Profits
• Expedition of new worldwide markets.
• Boost in earnings from global markets.
• Income diversity.
• Step towards being a strong international brand name.

Cons:

• Extension of issues connected to variety.
• Differences in cultures might led to a failure of the brand specifically in Asian countries.
• Low incomes at preliminary levels.
• Boost in marketing expenses to get market share.



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