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

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

RecommendationsOn the basis of above internal and external analysis of the business along with the assessment of numerous alternatives, the company is suggested to consider alternative 3. As alternative 3 would permit the business to expand in worldwide markets without any decrease in its regional revenues and any deterioration of its market position. The company might pursue alternative 1 which would make it possible for the company to focus on potential global markets rather than the local markets but as the business is highly dependent on the regional markets with 90% of its stores in the US, there fore pursuing alternative 1 would result in the substantial decline in business's profits.

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

International SegmentsExpansion towards global markets through opening new shops in other Europe and Asian countries with closing domestic shops is although an excellent alternative for increasing the international existence of the business. The closing of domestic shops could extremely impact the revenues of the company as above 90% of its stores are located domestically and closing those shops would eventually reduce the incomes of the company. Additionally, the business has a long term market position in United States which can not be produced soon in the new markets. The choice would help the company to broaden in international markets together with the removal of concerns raised in its regional markets related to its diversity. The advantages and disadvantages for Option 1 are noted below;

Pros:

• Expedition of new worldwide markets.
• Boost in income from global markets.
• Elimination of issues associated with diversity.
• Earnings diversification.
• Action towards being a strong international brand.

Cons:

• Loss of extensive earnings from the local markets.
• Increase in competition.
• Distinctions in cultures could led to a failure of the brand especially in Asian countries.
• Low incomes at preliminary 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 Help Stores

Alternative 2 consists of the intro of online market locations through generating an appropriate company's website. With the increased patterns towards online shopping, the online shops like Amazon, Alibaba and so on could present an extreme hazard to the marketplace share of company. The rivals are shifting towards click and Recommendations of Air France Klm And Alitalia: Preparing National Champions For The Future Case Help stores with Space presenting Piperline. This shift towards online markets could lower the incomes for business. In this circumstance the company might consider introducing Click and Recommendations of Air France Klm And Alitalia: Preparing National Champions For The Future Case Analysis stores. These stores with a low requirement of funds to settle would allow the business to reach global markets, without ending its domestic stores. The advantages and disadvantages of option 2 are offered as follows;

Pros:

• Low financial investment
• Minimizing competitors hazard
• Access to the world markets
• Increasing the size of customer base
• Easy to manage
• Large Revenues
• Low Operating Expense
• Easy brand-new market entrance

Cons:

• Hazard to the marketplace position
• Elimination of brand name Uniqueness
• Removal of the excellent shop experience.
• Risk of decrease in elite sales.

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

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

Pros:

• Decreasing competitors hazard
• Access to the world markets
• Increasing the size of customer base
• Big Revenues
• Exploration of brand-new global markets.
• Increase in revenue from international markets.
• Profits diversification.
• Action towards being a strong worldwide brand.

Cons:

• Continuation of issues related to diversity.
• Distinctions in cultures could resulted in a failure of the brand especially in Asian countries.
• Low profits at preliminary levels.
• Boost in marketing expenditures to gain market share.



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