Recommendations of Thomas Cook Group On The Brink (B): Transformation Year 1 Results Case Solution

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Recommendations of Thomas Cook Group On The Brink (B): Transformation Year 1 Results Case Study Solution

On the basis of above internal and external analysis of the company along with the assessment of various options, the company is suggested to think about alternative 3. As alternative 3 would enable the business to expand in worldwide markets without any reduction in its local revenues and any degeneration of its market position. The business could pursue alternative 1 which would allow the company to focus on prospective global markets rather than the local markets but as the business is highly dependent on the local markets with 90% of its stores in the US, there fore pursuing alternative 1 would result in the significant decline in company's earnings.

Aletrnative-1: Expanding International Brick and Recommendations of Thomas Cook Group On The Brink (B): Transformation Year 1 Results Case Help Stores

Expansion towards international markets through opening brand-new shops in other Europe and Asian countries with closing domestic stores is although an excellent choice for increasing the international presence of the company. The closing of domestic stores could highly impact the revenues of the firm as above 90% of its stores are situated locally and closing those shops would ultimately minimize the revenues of the company. Furthermore, the business has a long term market position in United States which can not be generated quickly in the brand-new markets. The option would assist the business to broaden in worldwide markets in addition to the removal of concerns raised in its regional markets connected to its diversity. The benefits and drawbacks for Option 1 are noted below;

Pros:

• Expedition of new international markets.
• Boost in income from worldwide markets.
• Elimination of concerns associated with variety.
• Earnings diversification.
• Step towards being a strong worldwide brand name.

Cons:

• Loss of substantial earnings from the regional markets.
• Boost in competitors.
• Distinctions in cultures might resulted in a failure of the brand name particularly in Asian nations.
• Low profits at initial levels.
• Boost in marketing expenses to get market share.

Alternative-2: Introduction of Click and Recommendations of Thomas Cook Group On The Brink (B): Transformation Year 1 Results Case Analysis Stores

With the increased patterns towards online shopping, the online shops like Amazon, Alibaba etc. might present a serious hazard to the market share of company. In this situation the company could consider presenting Click and Recommendations of Thomas Cook Group On The Brink (B): Transformation Year 1 Results Case Solution stores. These stores with a low requirement of funds to settle would allow the company to reach international markets, without ending its domestic stores.

Pros:

• Low investment
• Reducing competitors danger
• Access to the world markets
• Enlarging customer base
• Easy to manage
• Large Profits
• Low Operating Costs
• Easy brand-new market entrance

Cons:

• Danger to the market position
• Elimination of brand name Individuality
• Elimination of the fantastic store experience.
• Threat of decline in elite sales.

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

Another alternative that the business might think about, is to broaden towards the global markets without closing its domestic shops that adds to the huge part of earnings of the business. The pros and cons connected to Alternative 3 are given listed below;

Pros:

• Decreasing competitors threat
• Access to the world markets
• Increasing the size of consumer base
• Large Revenues
• Exploration of brand-new global markets.
• Boost in earnings from worldwide markets.
• Revenue diversity.
• Action towards being a strong global brand name.

Cons:

• Extension of issues related to diversity.
• Distinctions in cultures could led to a failure of the brand specifically in Asian countries.
• Low incomes at preliminary levels.
• Increase in marketing expenditures to get market share.



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