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

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Recommendations of Jan Carlzon: Ceo At Sas (B) Case Study Analysis

On the basis of above internal and external analysis of the business along with the examination of numerous alternatives, the company is recommended to consider alternative 3. As alternative 3 would permit the business to broaden in international markets without any decrease in its local incomes and any degeneration of its market position. The business could pursue alternative 1 which would make it possible for the company to focus on prospective worldwide markets rather than the local markets but as the company is highly dependent on the local markets with 90% of its shops in the United States, there fore pursuing option 1 would result in the considerable decrease in business's income.

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

The company has a long term market position in US which can not be generated quickly in the new markets. The alternative would help the business to expand in worldwide markets along with the removal of problems raised in its local markets related to its diversity.

Pros:

• Expedition of new worldwide markets.
• Increase in profits from international markets.
• Removal of concerns connected to diversity.
• Revenue diversification.
• Step towards being a strong worldwide brand name.

Cons:

• Loss of substantial incomes from the regional markets.
• Increase in competition.
• Distinctions in cultures might resulted in a failure of the brand name especially in Asian nations.
• Low revenues at preliminary levels.
• Increase in marketing expenditures to get market share.

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

With the increased trends towards online shopping, the online shops like Amazon, Alibaba etc. could position a severe hazard to the market share of company. In this circumstance the business might consider introducing Click and Recommendations of Jan Carlzon: Ceo At Sas (B) Case Solution stores. These stores with a low requirement of funds to settle would enable the company to reach international markets, without ending its domestic shops.

Pros:

• Low financial investment
• Decreasing competitors threat
• Access to the world markets
• Increasing the size of consumer base
• Easy to handle
• Big Earnings
• Low Operating Expense
• Easy new market entrance

Cons:

• Risk to the market position
• Removal of brand Originality
• Removal of the excellent store experience.
• Danger of decline in elite sales.

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

Another choice that the business might consider, is to expand towards the worldwide markets without closing its domestic shops that adds to the major part of earnings of the company. The benefits and drawbacks associated with Alternative 3 are given listed below;

Pros:

• Lowering competition danger
• Access to the world markets
• Enlarging consumer base
• Big Profits
• Expedition of brand-new global markets.
• Increase in profits from global markets.
• Revenue diversification.
• Action towards being a strong global brand name.

Cons:

• Extension of concerns associated with variety.
• Distinctions in cultures might led to a failure of the brand name especially in Asian nations.
• Low earnings at initial levels.
• Boost in marketing expenditures to gain market share.



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