Recommendations of Air France Klm And Alitalia: Preparing National Champions For The Future (A) Case Solution

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Recommendations of Air France Klm And Alitalia: Preparing National Champions For The Future (A) Case Study Solution

On the basis of above internal and external analysis of the company together with the evaluation of numerous options, the company is suggested to consider alternative 3. As alternative 3 would enable the business to expand in worldwide markets without any decrease in its regional revenues and any wear and tear of its market position. By thinking about Alternative 3, the company might preserve its shop experience and brand originality. However, it could also think about alternative 2 that might permit the business to access the marketplaces without any possible financial investment. The business could pursue alternative 1 which would enable the business to focus on potential worldwide markets rather than the local markets however as the business is highly reliant on the local markets with 90% of its stores in the United States, there fore pursuing alternative 1 would result in the considerable decline in business's revenue. The business is recommended to think about alternative 3.

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

Growth towards international markets through opening brand-new shops in other Europe and Asian nations with closing domestic stores is although a great alternative for increasing the global presence of the business. However, the closing of domestic shops could highly affect the earnings of the firm as above 90% of its stores are located domestically and closing those stores would ultimately lower the incomes of the company. The business has a long term market position in US which can not be produced quickly in the brand-new markets. The option would assist the company to broaden in worldwide markets together with the elimination of problems raised in its regional markets associated with its variety. The benefits and drawbacks for Option 1 are noted below;

Pros:

• Expedition of brand-new global markets.
• Increase in revenue from global markets.
• Removal of concerns associated with variety.
• Profits diversification.
• Action towards being a strong international brand name.

Cons:

• Loss of extensive profits from the regional markets.
• Increase in competition.
• Differences in cultures might caused a failure of the brand name specifically in Asian countries.
• Low revenues at initial levels.
• Boost in marketing expenses to get market share.

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

Alternative 2 includes the introduction of online market locations through producing an appropriate company's site. With the increased patterns towards online shopping, the online shops like Amazon, Alibaba etc. might posture a serious hazard to the marketplace share of company. Moreover, the competitors are moving towards click and Recommendations of Air France Klm And Alitalia: Preparing National Champions For The Future (A) Case Solution stores with Gap introducing Piperline. This shift towards online markets could decrease the earnings for business. In this scenario the business could consider presenting Click and Recommendations of Air France Klm And Alitalia: Preparing National Champions For The Future (A) Case Solution shops. These stores with a low requirement of funds to settle would allow the business to reach international markets, without ending its domestic stores. The benefits and drawbacks of option 2 are given as follows;

Pros:

• Low financial investment
• Decreasing competition danger
• Access to the world markets
• Enlarging consumer base
• Easy to handle
• Big Revenues
• Low Operating Expense
• Easy brand-new market entryway

Cons:

• Risk to the marketplace position
• Elimination of brand Individuality
• Removal of the excellent shop experience.
• Risk of decline in elite sales.

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

Another choice that the company might consider, is to expand towards the global markets without closing its domestic shops that adds to the huge part of incomes of the business. The advantages and disadvantages connected to Alternative 3 are given below;

Pros:

• Minimizing competition hazard
• Access to the world markets
• Increasing the size of consumer base
• Big Revenues
• Exploration of new global markets.
• Boost in income from global markets.
• Profits diversification.
• Step towards being a strong worldwide brand.

Cons:

• Continuation of problems associated with diversity.
• Distinctions in cultures might caused a failure of the brand name especially in Asian nations.
• Low earnings at preliminary levels.
• Boost in marketing expenditures to acquire market share.



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