Recommendations of Aig’S E-Business Risk Insurance Solutions Case Solution

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Recommendations of Aig’S E-Business Risk Insurance Solutions Case Study Solution

On the basis of above internal and external analysis of the company along with the examination of numerous options, the business is suggested to think about alternative 3. As alternative 3 would allow the business to broaden in worldwide markets without any decrease in its local profits and any degeneration of its market position. The company might pursue alternative 1 which would make it possible for the business to focus on possible international markets rather than the regional markets however as the business is extremely reliant on the regional markets with 90% of its shops in the US, there fore pursuing option 1 would result in the substantial decline in company's income.

Aletrnative-1: Expanding International Brick and Recommendations of Aig’S E-Business Risk Insurance Solutions Case Analysis Stores

Expansion towards international markets through opening brand-new shops in other Europe and Asian nations with closing domestic stores is although a great choice for increasing the global presence of the company. Nevertheless, the closing of domestic shops could highly impact the earnings of the company as above 90% of its shops are located 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 produced soon in the new markets. The alternative would assist the business to broaden in worldwide markets along with the removal of problems raised in its local markets connected to its diversity. The advantages and disadvantages for Option 1 are listed below;

Pros:

• Exploration of brand-new international markets.
• Increase in earnings from worldwide markets.
• Elimination of problems associated with variety.
• Earnings diversification.
• Step towards being a strong international brand.

Cons:

• Loss of comprehensive revenues from the regional markets.
• Increase in competition.
• Distinctions in cultures might led to a failure of the brand specifically in Asian countries.
• Low revenues at preliminary levels.
• Boost in marketing expenses to get market share.

Alternative-2: Introduction of Click and Recommendations of Aig’S E-Business Risk Insurance Solutions Case Analysis Stores

Alternative 2 consists of the introduction of online market locations through creating a proper business's website. With the increased trends towards online shopping, the online stores like Amazon, Alibaba etc. might pose an extreme hazard to the market share of business. The competitors are moving towards click and Recommendations of Aig’S E-Business Risk Insurance Solutions Case Solution shops with Space introducing Piperline. This shift towards online markets could reduce the revenues for company. In this scenario the business might think about introducing Click and Recommendations of Aig’S E-Business Risk Insurance Solutions Case Help stores. These shops with a low requirement of funds to settle would make it possible for the business to reach global markets, without ending its domestic shops. The benefits and drawbacks of option 2 are given as follows;

Pros:

• Low financial investment
• Minimizing competition threat
• Access to the world markets
• Expanding customer base
• Easy to handle
• Large Earnings
• Low Operating Expense
• Easy brand-new market entryway

Cons:

• Hazard to the market position
• Removal of brand name Individuality
• Elimination of the terrific store experience.
• Risk of decrease in elite sales.

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

Another option that the company might think about, is to expand towards the global markets without closing its domestic stores that contributes to the major part of revenues of the business. The pros and cons connected to Alternative 3 are offered below;

Pros:

• Reducing competitors threat
• Access to the world markets
• Enlarging consumer base
• Large Profits
• Expedition of brand-new international markets.
• Boost in revenue from international markets.
• Revenue diversity.
• Action towards being a strong global brand.

Cons:

• Continuation of problems associated with diversity.
• Distinctions in cultures could caused a failure of the brand name particularly in Asian nations.
• Low earnings at initial levels.
• Boost in marketing expenses to get market share.



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