Recommendations of Ctrip: Scientifically Managing Travel Services Case Analysis

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Recommendations of Ctrip: Scientifically Managing Travel Services Case Study Help

On the basis of above internal and external analysis of the business together with the evaluation of different alternatives, the business is advised to consider alternative 3. As alternative 3 would permit the business to expand in international markets without any decrease in its local earnings and any deterioration of its market position. By thinking about Alternative 3, the company might keep its store experience and brand individuality. However, it could likewise consider alternative 2 that might enable the business to access the marketplaces with no prospective financial investment. Although, the company might pursue alternative 1 which would enable the company to concentrate on prospective global markets rather than the regional markets but as the company is highly based on the regional markets with 90% of its stores in the United States, there fore pursuing option 1 would result in the substantial decline in business's profits. The business is advised to think about alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of Ctrip: Scientifically Managing Travel Services Case Help Stores

Growth towards international markets through opening brand-new shops in other Europe and Asian countries with closing domestic shops is although a good choice for increasing the global existence of the business. Nevertheless, the closing of domestic shops could extremely impact the profits of the firm as above 90% of its shops lie locally and closing those stores would ultimately decrease the revenues of the company. Moreover, the company has a long term market position in US which can not be created quickly in the brand-new markets. The choice would assist the business to expand in worldwide markets in addition to the removal of problems raised in its regional markets associated with its variety. The advantages and disadvantages for Option 1 are noted below;

Pros:

• Expedition of brand-new global markets.
• Boost in revenue from global markets.
• Elimination of concerns related to variety.
• Revenue diversity.
• Step towards being a strong global brand name.

Cons:

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

Alternative-2: Introduction of Click and Recommendations of Ctrip: Scientifically Managing Travel Services Case Solution Stores

Alternative 2 consists of the introduction of online market locations through generating a correct business's site. With the increased patterns towards online shopping, the online stores like Amazon, Alibaba and so on could position an extreme hazard to the market share of business. Additionally, the rivals are shifting towards click and Recommendations of Ctrip: Scientifically Managing Travel Services Case Analysis stores with Gap introducing Piperline. This shift towards online markets could decrease the earnings for company. In this scenario the business could think about presenting Click and Recommendations of Ctrip: Scientifically Managing Travel Services Case Solution stores. These shops with a low requirement of funds to settle would make it possible for the company to reach worldwide markets, without ending its domestic stores. The benefits and drawbacks of option 2 are given as follows;

Pros:

• Low financial investment
• Decreasing competitors risk
• Access to the world markets
• Expanding customer base
• Easy to handle
• Large Profits
• Low Operating Expense
• Easy new market entryway

Cons:

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

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

Another choice that the business might think about, is to expand towards the worldwide markets without closing its domestic stores that adds to the huge part of earnings of the business. The pros and cons related to Alternative 3 are given below;

Pros:

• Minimizing competitors risk
• Access to the world markets
• Enlarging customer base
• Large Revenues
• Exploration of new worldwide markets.
• Increase in income from international markets.
• Earnings diversity.
• Step towards being a strong worldwide brand.

Cons:

• Continuation of problems connected to diversity.
• Distinctions in cultures could led to a failure of the brand name especially in Asian countries.
• Low earnings at initial levels.
• Boost in marketing expenditures to acquire market share.



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