Recommendations of Jan Carlzon: Ceo At Sas (A) Case Help

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Recommendations of Jan Carlzon: Ceo At Sas (A) Case Study Solution

On the basis of above internal and external analysis of the business along with the evaluation of various options, the company is advised to think about alternative 3. As alternative 3 would enable the company to expand in worldwide markets without any reduction in its regional profits and any degeneration of its market position. By thinking about Alternative 3, the company might maintain its store experience and brand name originality. Nevertheless, it could likewise consider alternative 2 that could permit the business to access the marketplaces without any prospective investment. The business could pursue alternative 1 which would make it possible for the company to focus on prospective global markets rather than the local markets but as the company is extremely dependent on the regional markets with 90% of its shops in the United States, there fore pursuing alternative 1 would result in the substantial decline in business's profits. The business is recommended to consider alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of Jan Carlzon: Ceo At Sas (A) Case Help Stores

Growth towards international markets through opening new stores in other Europe and Asian nations with closing domestic shops is although a good option for increasing the international presence of the business. However, the closing of domestic stores might highly impact the incomes of the company as above 90% of its stores lie domestically and closing those stores would eventually decrease the profits of the firm. Additionally, the business has a long term market position in United States which can not be created soon in the new markets. The alternative would assist the company to broaden in global markets together with the elimination of problems raised in its local markets associated with its variety. The benefits and drawbacks for Option 1 are listed below;

Pros:

• Expedition of new worldwide markets.
• Boost in income from international markets.
• Elimination of concerns related to variety.
• Income diversity.
• Action towards being a strong worldwide brand.

Cons:

• Loss of extensive incomes from the local markets.
• Increase in competitors.
• Differences in cultures could led to a failure of the brand name especially in Asian nations.
• Low incomes at preliminary levels.
• Boost in marketing expenditures to acquire market share.

Alternative-2: Introduction of Click and Recommendations of Jan Carlzon: Ceo At Sas (A) Case Analysis Stores

Alternative 2 consists of the introduction of online market locations through producing an appropriate business's site. With the increased trends towards online shopping, the online stores like Amazon, Alibaba and so on could pose a serious risk to the marketplace share of business. Furthermore, the rivals are shifting towards click and Recommendations of Jan Carlzon: Ceo At Sas (A) Case Analysis shops with Space presenting Piperline. This shift towards online markets might lower the earnings for business. In this scenario the company could think about introducing Click and Recommendations of Jan Carlzon: Ceo At Sas (A) Case Analysis shops. These stores with a low requirement of funds to settle would allow the company to reach international markets, without ending its domestic shops. The advantages and disadvantages of alternative 2 are given as follows;

Pros:

• Low investment
• Lowering competitors danger
• Access to the world markets
• Enlarging customer base
• Easy to handle
• Large Revenues
• Low Operating Costs
• Easy new market entrance

Cons:

• Danger to the market position
• Removal of brand Individuality
• Removal of the excellent shop experience.
• Danger of decrease in elite sales.

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

Another option that the business might consider, is to expand towards the global markets without closing its domestic stores that adds to the huge part of profits of the company. The advantages and disadvantages related to Alternative 3 are given listed below;

Pros:

• Reducing competitors risk
• Access to the world markets
• Increasing the size of consumer base
• Large Revenues
• Expedition of new worldwide markets.
• Boost in revenue from international markets.
• Income diversity.
• Step towards being a strong worldwide brand.

Cons:

• Extension of problems associated with variety.
• Differences in cultures could resulted in a failure of the brand particularly in Asian nations.
• Low incomes at preliminary levels.
• Boost in marketing expenditures to get market share.



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