Recommendations of Airbus A3xx: Developing The Worlds Largest Commercial Jet (A) Case Solution

Home >> Harvard Business School >> Airbus A3xx: Developing The Worlds Largest Commercial Jet (A) >> Recommendations

Recommendations of Airbus A3xx: Developing The Worlds Largest Commercial Jet (A) Case Study Analysis

On the basis of above internal and external analysis of the company along with the examination of numerous alternatives, the company is recommended to think about alternative 3. As alternative 3 would permit the company to broaden in worldwide markets without any decrease in its local earnings and any degeneration of its market position. The company could pursue alternative 1 which would allow the company to focus on possible international markets rather than the regional markets but as the business is extremely reliant on the regional markets with 90% of its stores in the US, there fore pursuing option 1 would result in the substantial decline in company's income.

Aletrnative-1: Expanding International Brick and Recommendations of Airbus A3xx: Developing The Worlds Largest Commercial Jet (A) Case Solution Stores

Growth towards international markets through opening brand-new shops in other Europe and Asian nations with closing domestic shops is although an excellent option for increasing the worldwide presence of the business. The closing of domestic shops could highly affect the profits of the firm as above 90% of its shops are located locally and closing those stores would ultimately reduce the earnings of the firm. Furthermore, the business has a long term market position in United States which can not be produced soon in the brand-new markets. The choice would assist the company to broaden in worldwide markets in addition to the elimination of issues raised in its regional markets associated with its diversity. The pros and Cons for Alternative 1 are noted below;

Pros:

• Exploration of new international markets.
• Boost in profits from international markets.
• Removal of issues related to variety.
• Revenue diversity.
• Step towards being a strong global brand.

Cons:

• Loss of comprehensive revenues from the regional markets.
• Increase in competitors.
• Distinctions in cultures could caused a failure of the brand name particularly in Asian countries.
• Low earnings at preliminary levels.
• Boost in marketing expenditures to get market share.

Alternative-2: Introduction of Click and Recommendations of Airbus A3xx: Developing The Worlds Largest Commercial Jet (A) Case Help Stores

With the increased patterns towards online shopping, the online shops like Amazon, Alibaba etc. could position a serious threat to the market share of company. In this scenario the company could consider introducing Click and Recommendations of Airbus A3xx: Developing The Worlds Largest Commercial Jet (A) Case Help shops. These shops with a low requirement of funds to settle would allow the company to reach international markets, without ending its domestic stores.

Pros:

• Low investment
• Lowering competitors risk
• Access to the world markets
• Expanding consumer base
• Easy to manage
• Big Earnings
• Low Operating Costs
• Easy new market entrance

Cons:

• Danger to the marketplace position
• Elimination of brand Uniqueness
• Elimination of the fantastic store experience.
• Threat 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 worldwide 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 given listed below;

Pros:

• Reducing competitors danger
• Access to the world markets
• Expanding consumer base
• Large Earnings
• Expedition of new international markets.
• Increase in revenue from global markets.
• Earnings diversification.
• Action towards being a strong global brand.

Cons:

• Extension of problems related to diversity.
• Distinctions in cultures might led to a failure of the brand name especially in Asian nations.
• Low profits at preliminary levels.
• Increase in marketing expenses to get market share.



This is sample work and not applicable to real case study. Please place the order on the website to get your own originally done case solution.