Recommendations of Thomas Cook Group On The Brink (C): Transformation Year 2 Results Case Help

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Recommendations of Thomas Cook Group On The Brink (C): Transformation Year 2 Results Case Study Analysis

On the basis of above internal and external analysis of the company along with the assessment of different alternatives, the business is recommended to consider alternative 3. As alternative 3 would allow the business to expand in worldwide markets with no reduction in its local profits and any degeneration of its market position. By considering Alternative 3, the company could keep its shop experience and brand uniqueness. It might also consider alternative 2 that might permit the business to access the markets without any potential financial investment. The company might pursue alternative 1 which would enable the company to focus on potential worldwide markets rather than the regional markets but as the company is extremely reliant on the regional markets with 90% of its stores in the United States, there fore pursuing alternative 1 would result in the significant decrease in business's earnings. Therefore, the company is recommended to consider alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of Thomas Cook Group On The Brink (C): Transformation Year 2 Results Case Analysis Stores

Growth towards worldwide markets through opening new stores in other Europe and Asian nations with closing domestic shops is although an excellent option for increasing the international existence of the business. Nevertheless, the closing of domestic shops might extremely affect the revenues of the firm as above 90% of its stores lie domestically and closing those shops would eventually reduce the incomes of the company. The company has a long term market position in United States which can not be generated quickly in the new markets. The choice would help the business to expand in worldwide markets along with the removal of problems raised in its local markets connected to its variety. The pros and Cons for Option 1 are noted below;

Pros:

• Expedition of brand-new global markets.
• Increase in profits from international markets.
• Removal of issues related to diversity.
• Earnings diversity.
• Step towards being a strong international brand.

Cons:

• Loss of comprehensive earnings from the regional markets.
• Increase in competition.
• Distinctions in cultures might caused a failure of the brand name particularly in Asian countries.
• Low incomes at initial levels.
• Boost in marketing expenses to acquire market share.

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

With the increased trends towards online shopping, the online stores like Amazon, Alibaba and so on might pose an extreme danger to the market share of business. In this situation the company might think about introducing Click and Recommendations of Thomas Cook Group On The Brink (C): Transformation Year 2 Results Case Analysis shops. These stores with a low requirement of funds to settle would allow the company to reach worldwide markets, without ending its domestic stores.

Pros:

• Low financial investment
• Decreasing competitors danger
• Access to the world markets
• Increasing the size of consumer base
• Easy to manage
• Large Revenues
• Low Operating Expense
• Easy new market entryway

Cons:

• Hazard to the market position
• Removal of brand Individuality
• Elimination of the great store experience.
• Threat of decline in elite sales.

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

Another choice that the company might consider, is to broaden towards the global markets without closing its domestic shops that contributes to the major part of profits of the company. The advantages and disadvantages related to Alternative 3 are offered listed below;

Pros:

• Minimizing competitors hazard
• Access to the world markets
• Increasing the size of consumer base
• Big Earnings
• Expedition of brand-new international markets.
• Boost in income from international markets.
• Profits diversity.
• Step towards being a strong worldwide brand.

Cons:

• Continuation of problems associated with diversity.
• Distinctions in cultures could led to a failure of the brand especially in Asian nations.
• Low revenues at preliminary levels.
• Increase in marketing expenses to acquire market share.



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