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

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

On the basis of above internal and external analysis of the business together with the assessment of various options, the business is advised to think about alternative 3. As alternative 3 would permit the company to expand in global markets with no decrease in its regional revenues and any degeneration of its market position. By considering Alternative 3, the business could preserve its store experience and brand name originality. It could likewise think about alternative 2 that might enable the business to access the markets without any potential financial investment. The company could pursue alternative 1 which would allow the company to focus on potential international markets rather than the local markets however as the company 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 considerable decline in business's income. For that reason, the company is advised to consider alternative 3.

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

The business has a long term market position in US which can not be generated quickly in the brand-new markets. The alternative would help the business to expand in worldwide markets along with the elimination of problems raised in its regional markets related to its diversity.

Pros:

• Expedition of new international markets.
• Boost in income from international markets.
• Removal of concerns associated with diversity.
• Revenue diversification.
• Action towards being a strong global brand name.

Cons:

• Loss of substantial profits from the local markets.
• Increase in competitors.
• Differences in cultures might caused a failure of the brand specifically in Asian nations.
• Low incomes at preliminary levels.
• Boost in marketing expenditures to get 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 trends towards online shopping, the online shops like Amazon, Alibaba and so on could posture a severe threat to the market share of company. In this circumstance the company might think about introducing Click and Recommendations of Air France-Klm-Alitalia-Etihad: Of Growth In Alliances (B) Case Help shops. These stores with a low requirement of funds to settle would allow the business to reach worldwide markets, without ending its domestic shops.

Pros:

• Low financial investment
• Decreasing competition danger
• Access to the world markets
• Enlarging consumer base
• Easy to handle
• Large Profits
• Low Operating Expense
• Easy brand-new market entrance

Cons:

• Risk to the marketplace position
• Removal of brand Originality
• Removal of the great shop experience.
• Danger of decline in elite sales.

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

Another alternative that the business could consider, is to expand towards the worldwide markets without closing its domestic stores that contributes to the major part of profits of the business. The advantages and disadvantages connected to Alternative 3 are offered below;

Pros:

• Decreasing competitors danger
• Access to the world markets
• Expanding customer base
• Big Earnings
• Exploration of new worldwide markets.
• Increase in profits from international markets.
• Profits diversity.
• Step towards being a strong worldwide brand.

Cons:

• Extension of issues related to diversity.
• Distinctions in cultures might caused a failure of the brand particularly in Asian countries.
• Low profits at initial levels.
• Increase in marketing expenses to gain market share.



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