Recommendations of Air France Klm And Alitalia Preparing National Champions For The Future Case Analysis

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Recommendations of Air France Klm And Alitalia Preparing National Champions For The Future Case Study Analysis

On the basis of above internal and external analysis of the business along with the assessment of numerous alternatives, the business is recommended to think about alternative 3. As alternative 3 would enable the company to expand in global markets without any decrease in its regional revenues and any degeneration of its market position. The company might pursue alternative 1 which would make it possible for the business to focus on potential worldwide markets rather than the regional markets however as the business is extremely dependent on the regional markets with 90% of its stores in the United States, there fore pursuing option 1 would result in the substantial decrease in business's earnings.

Aletrnative-1: Expanding International Brick and Recommendations of Air France Klm And Alitalia Preparing National Champions For The Future Case Solution Stores

Growth towards worldwide markets through opening new stores in other Europe and Asian nations with closing domestic stores is although a good choice for increasing the global presence of the business. The closing of domestic stores could highly affect the incomes of the firm as above 90% of its shops are located locally and closing those shops would ultimately reduce the profits of the firm. The business has a long term market position in US which can not be created quickly in the brand-new markets. The choice would assist the company to expand in international markets in addition to the elimination of concerns raised in its regional markets related to its diversity. The benefits and drawbacks for Alternative 1 are noted below;

Pros:

• Expedition of brand-new international markets.
• Boost in earnings from worldwide markets.
• Elimination of problems associated with variety.
• Earnings diversity.
• Step towards being a strong international brand name.

Cons:

• Loss of extensive profits from the regional markets.
• Increase in competitors.
• Distinctions in cultures could resulted in a failure of the brand particularly in Asian nations.
• Low profits at initial levels.
• Increase in marketing expenditures to gain market share.

Alternative-2: Introduction of Click and Recommendations of Air France Klm And Alitalia Preparing National Champions For The Future Case Solution Stores

Alternative 2 consists of the intro of online market places through generating an appropriate business's website. With the increased trends towards online shopping, the online stores like Amazon, Alibaba and so on might position a severe danger to the market share of company. The competitors are moving towards click and Recommendations of Air France Klm And Alitalia Preparing National Champions For The Future Case Help stores with Gap presenting Piperline. This shift towards online markets could minimize the revenues for company. In this situation the company might consider introducing Click and Recommendations of Air France Klm And Alitalia Preparing National Champions For The Future Case Analysis shops. These shops with a low requirement of funds to settle would enable the company to reach international markets, without ending its domestic shops. The pros and cons of option 2 are given as follows;

Pros:

• Low financial investment
• Reducing competition danger
• Access to the world markets
• Expanding consumer base
• Easy to handle
• Large Earnings
• Low Operating Expense
• Easy brand-new market entryway

Cons:

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

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

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

Pros:

• Lowering competitors risk
• Access to the world markets
• Increasing the size of customer base
• Big Incomes
• Expedition of brand-new worldwide markets.
• Boost in earnings from worldwide markets.
• Earnings diversification.
• Action towards being a strong worldwide brand name.

Cons:

• Extension of issues related to variety.
• Distinctions in cultures might resulted in a failure of the brand name specifically in Asian nations.
• Low earnings at preliminary levels.
• Increase in marketing expenditures to gain market share.



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