Recommendations of Merging American Airlines And Us Airways (A) Case Help

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Recommendations of Merging American Airlines And Us Airways (A) Case Study Analysis

On the basis of above internal and external analysis of the company along with the examination of different options, the business is recommended to think about alternative 3. As alternative 3 would allow the company to expand in worldwide markets without any decrease in its local profits and any wear and tear of its market position. The company could pursue alternative 1 which would enable the business to focus on potential global markets rather than the regional markets but as the company is extremely reliant on the local markets with 90% of its shops in the US, there fore pursuing option 1 would result in the significant decline in company's revenue.

Aletrnative-1: Expanding International Brick and Recommendations of Merging American Airlines And Us Airways (A) Case Analysis Stores

The company has a long term market position in US which can not be produced quickly in the brand-new markets. The alternative would assist the business to broaden in international markets along with the removal of concerns raised in its regional markets related to its diversity.

Pros:

• Expedition of brand-new worldwide markets.
• Boost in profits from global markets.
• Elimination of concerns associated with variety.
• Earnings diversification.
• Action towards being a strong worldwide brand name.

Cons:

• Loss of comprehensive earnings from the regional markets.
• Increase in competition.
• Differences in cultures might led to a failure of the brand name especially in Asian nations.
• Low profits at initial levels.
• Boost in marketing expenses to get market share.

Alternative-2: Introduction of Click and Recommendations of Merging American Airlines And Us Airways (A) Case Solution Stores

Alternative 2 consists of the introduction of online market locations through creating an appropriate business's site. With the increased trends towards online shopping, the online stores like Amazon, Alibaba etc. might posture an extreme threat to the market share of business. The rivals are shifting towards click and Recommendations of Merging American Airlines And Us Airways (A) Case Help shops with Space presenting Piperline. This shift towards online markets might decrease the profits for business. In this situation the company could consider presenting Click and Recommendations of Merging American Airlines And Us Airways (A) Case Analysis shops. These shops with a low requirement of funds to settle would enable the business to reach global markets, without ending its domestic shops. The pros and cons of option 2 are offered as follows;

Pros:

• Low investment
• Reducing competition hazard
• Access to the world markets
• Enlarging customer base
• Easy to manage
• Big Profits
• Low Operating Expense
• Easy new market entryway

Cons:

• Threat to the marketplace position
• Elimination of brand Originality
• Elimination 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 international markets without closing its domestic shops that contributes to the major part of earnings of the business. The benefits and drawbacks associated with Alternative 3 are given below;

Pros:

• Decreasing competitors risk
• Access to the world markets
• Enlarging customer base
• Large Revenues
• Exploration of new global markets.
• Increase in profits from worldwide markets.
• Earnings diversification.
• Step towards being a strong global brand.

Cons:

• Continuation of concerns connected to variety.
• Distinctions in cultures could caused a failure of the brand particularly in Asian nations.
• Low profits at preliminary levels.
• Boost in marketing expenditures to get market share.



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