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

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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 assessment of various alternatives, the business is recommended to think about alternative 3. As alternative 3 would permit the business to broaden in global markets without any decrease in its regional incomes and any deterioration of its market position. The business might pursue alternative 1 which would allow the company to focus on possible international markets rather than the regional markets but as the company is extremely dependent on the local markets with 90% of its stores in the United States, there fore pursuing option 1 would result in the substantial decline in company's revenue.

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

Growth towards international markets through opening brand-new stores in other Europe and Asian countries with closing domestic stores is although a great alternative for increasing the global existence of the business. However, the closing of domestic stores could highly impact the profits of the company as above 90% of its stores lie locally and closing those stores would ultimately decrease the profits of the company. The company has a long term market position in US which can not be produced quickly in the brand-new markets. The alternative would assist the business to expand in global markets in addition to the removal of problems raised in its regional markets associated with its diversity. The benefits and drawbacks for Option 1 are noted below;

Pros:

• Expedition of new worldwide markets.
• Increase in income from international markets.
• Elimination of problems related to variety.
• Earnings diversification.
• Action towards being a strong worldwide brand.

Cons:

• Loss of comprehensive profits from the regional markets.
• Increase in competitors.
• Differences in cultures might resulted in a failure of the brand name especially in Asian countries.
• Low profits at preliminary levels.
• Increase in marketing expenditures to get market share.

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

Alternative 2 includes the introduction of online market locations through producing a proper company's site. With the increased patterns towards online shopping, the online stores like Amazon, Alibaba and so on might posture an extreme threat to the market share of business. The competitors are moving towards click and Recommendations of Air Deccan: The First Low Cost Airline In India Case Help stores with Gap introducing Piperline. This shift towards online markets might decrease the incomes for company. In this circumstance the company might consider introducing Click and Recommendations of Air Deccan: The First Low Cost Airline In India Case Help shops. These shops with a low requirement of funds to settle would enable the business to reach worldwide markets, without ending its domestic shops. The benefits and drawbacks of option 2 are given as follows;

Pros:

• Low financial investment
• Minimizing competition risk
• Access to the world markets
• Enlarging customer base
• Easy to manage
• Big Incomes
• Low Operating Expense
• Easy brand-new market entrance

Cons:

• Threat to the marketplace position
• Elimination of brand name Originality
• Elimination of the great store experience.
• Threat of decrease in elite sales.

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

Another choice that the company could think about, is to expand towards the worldwide markets without closing its domestic shops that adds to the huge part of incomes of the company. The benefits and drawbacks connected to Alternative 3 are provided listed below;

Pros:

• Reducing competition danger
• Access to the world markets
• Expanding customer base
• Large Revenues
• Expedition of brand-new international markets.
• Increase in earnings from global markets.
• Earnings diversity.
• Action towards being a strong worldwide brand.

Cons:

• Continuation of issues associated with variety.
• Differences in cultures could led to a failure of the brand name particularly in Asian countries.
• Low profits at initial levels.
• Increase in marketing expenses to gain market share.



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