Recommendations of Air Deccan The First Low Cost Airline In India Case Analysis

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Recommendations of Air Deccan The First Low Cost Airline In India Case Study Help

On the basis of above internal and external analysis of the business along with the examination of various alternatives, the company is suggested to consider alternative 3. As alternative 3 would allow the company to broaden in worldwide markets without any reduction in its local revenues and any deterioration of its market position. The company could pursue alternative 1 which would allow the business to focus on possible 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 United States, there fore pursuing option 1 would result in the substantial decrease in business's income.

Aletrnative-1: Expanding International Brick and Recommendations of Air Deccan The First Low Cost Airline In India Case Analysis Stores

Growth towards worldwide markets through opening new shops in other Europe and Asian countries with closing domestic stores is although an excellent option for increasing the worldwide presence of the business. Nevertheless, the closing of domestic shops could highly affect the earnings of the firm as above 90% of its shops are located domestically and closing those shops would eventually lower the incomes of the company. Furthermore, the business has a long term market position in US which can not be created soon in the new markets. The option would help the company to broaden in worldwide markets together with the elimination of problems raised in its regional markets connected to its variety. The benefits and drawbacks for Alternative 1 are listed below;

Pros:

• Expedition of new international markets.
• Increase in revenue from worldwide markets.
• Elimination of problems connected to variety.
• Earnings diversity.
• Step towards being a strong international brand.

Cons:

• Loss of substantial profits from the regional markets.
• Boost in competition.
• Differences in cultures could resulted in a failure of the brand name especially in Asian countries.
• Low earnings at preliminary levels.
• Increase in marketing expenditures to acquire market share.

Alternative-2: Introduction of Click and Recommendations of Air Deccan The First Low Cost Airline In India Case Help Stores

Alternative 2 consists of the intro of online market locations through creating an appropriate company's website. With the increased patterns towards online shopping, the online stores like Amazon, Alibaba and so on could posture a serious hazard to the market share of company. The rivals are shifting towards click and Recommendations of Air Deccan The First Low Cost Airline In India Case Help shops with Space introducing Piperline. This shift towards online markets might reduce the earnings for business. In this situation the company could consider presenting Click and Recommendations of Air Deccan The First Low Cost Airline In India Case Analysis shops. These shops with a low requirement of funds to settle would allow the business to reach international markets, without ending its domestic shops. The benefits and drawbacks of option 2 are offered as follows;

Pros:

• Low investment
• Minimizing competition threat
• Access to the world markets
• Enlarging consumer base
• Easy to handle
• Large Incomes
• Low Operating Costs
• Easy brand-new market entrance

Cons:

• Threat to the marketplace position
• Removal of brand name Individuality
• Removal of the fantastic store experience.
• Danger of decrease 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 international markets without closing its domestic stores that contributes to the huge part of incomes of the business. The advantages and disadvantages related to Alternative 3 are offered below;

Pros:

• Decreasing competition hazard
• Access to the world markets
• Increasing the size of customer base
• Big Revenues
• Expedition of brand-new global markets.
• Boost in income from international markets.
• Income diversity.
• Action towards being a strong international brand name.

Cons:

• Continuation of issues connected to variety.
• Differences in cultures might caused a failure of the brand name especially in Asian countries.
• Low revenues at initial levels.
• Increase in marketing expenditures to get market share.



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