Recommendations of American International Group Inc Case Help

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Recommendations of American International Group Inc Case Study Solution

On the basis of above internal and external analysis of the business in addition to the assessment of different alternatives, the business is advised to consider alternative 3. As alternative 3 would enable the business to expand in international markets with no reduction in its regional incomes and any wear and tear of its market position. By thinking about Alternative 3, the company could keep its store experience and brand name uniqueness. However, it might likewise think about alternative 2 that could permit the company to access the markets with no possible financial investment. Although, the business might pursue alternative 1 which would enable the company to focus on prospective worldwide markets instead of the local markets but as the business is highly based on the local markets with 90% of its stores in the United States, there fore pursuing alternative 1 would lead to the substantial decrease in business's income. The business is suggested to consider alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of American International Group Inc Case Help Stores

The business has a long term market position in United States which can not be generated soon in the brand-new markets. The option would help the company to broaden in worldwide markets along with the elimination of problems raised in its local markets related to its variety.

Pros:

• Expedition of new global markets.
• Increase in earnings from international markets.
• Elimination of concerns connected to variety.
• Revenue diversity.
• Action towards being a strong worldwide brand name.

Cons:

• Loss of extensive incomes from the regional markets.
• Increase in competitors.
• Differences in cultures might led to a failure of the brand name specifically in Asian countries.
• Low profits at preliminary levels.
• Increase in marketing expenditures to acquire market share.

Alternative-2: Introduction of Click and Recommendations of American International Group Inc Case Analysis Stores

Alternative 2 consists of the intro of online market locations through producing a correct company's website. With the increased trends towards online shopping, the online shops like Amazon, Alibaba and so on could pose an extreme danger to the market share of business. Furthermore, the rivals are shifting towards click and Recommendations of American International Group Inc Case Solution shops with Gap introducing Piperline. This shift towards online markets could minimize the revenues for company. In this situation the business might think about presenting Click and Recommendations of American International Group Inc Case Analysis shops. These stores with a low requirement of funds to settle would allow the business to reach international markets, without ending its domestic shops. The advantages and disadvantages of alternative 2 are given as follows;

Pros:

• Low financial investment
• Minimizing competition threat
• Access to the world markets
• Enlarging customer base
• Easy to manage
• Large Profits
• Low Operating Expense
• Easy brand-new market entrance

Cons:

• Risk to the marketplace position
• Removal of brand name Uniqueness
• Removal of the excellent shop experience.
• Risk of decline in elite sales.

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

Another alternative that the company might consider, is to expand towards the international markets without closing its domestic stores that adds to the major part of incomes of the company. The advantages and disadvantages related to Alternative 3 are given listed below;

Pros:

• Decreasing competition danger
• Access to the world markets
• Enlarging customer base
• Big Profits
• Exploration of new global markets.
• Boost in income from international markets.
• Earnings diversification.
• Step towards being a strong worldwide brand.

Cons:

• Continuation of issues associated with diversity.
• Distinctions in cultures could led to a failure of the brand name specifically in Asian countries.
• Low revenues at preliminary levels.
• Boost in marketing expenditures to get market share.



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