Recommendations of Reviving Alitalia Italys Loss Making Airline Case Solution

Home >> Ibs Center For Management Research >> Reviving Alitalia Italys Loss Making Airline >> Recommendations

Recommendations of Reviving Alitalia Italys Loss Making Airline Case Study Analysis

On the basis of above internal and external analysis of the business in addition to the assessment of numerous options, the company is suggested to consider alternative 3. As alternative 3 would allow the business to broaden in international markets without any reduction in its regional incomes and any degeneration of its market position. By considering Alternative 3, the business could maintain its shop experience and brand name originality. Nevertheless, it might also consider alternative 2 that could allow the business to access the marketplaces with no potential financial investment. The business might pursue alternative 1 which would make it possible for the business to focus on potential global markets rather than the local markets but as the business is extremely dependent on the local markets with 90% of its shops in the US, there fore pursuing alternative 1 would result in the substantial decline in company's revenue. The business is advised to consider alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of Reviving Alitalia Italys Loss Making Airline Case Help Stores

Growth towards international markets through opening brand-new stores in other Europe and Asian countries with closing domestic shops is although an excellent choice for increasing the international presence of the business. Nevertheless, the closing of domestic shops might highly affect the earnings of the firm as above 90% of its stores are located locally and closing those stores would ultimately decrease the profits of the company. Additionally, the business has a long term market position in US which can not be created soon in the new markets. The option would assist the business to broaden in international markets together with the elimination of problems raised in its local markets related to its variety. The benefits and drawbacks for Alternative 1 are listed below;

Pros:

• Exploration of new worldwide markets.
• Increase in revenue from international markets.
• Removal of problems related to variety.
• Earnings diversity.
• Action towards being a strong international brand.

Cons:

• Loss of comprehensive incomes from the local markets.
• Boost in competition.
• Distinctions in cultures could resulted in a failure of the brand name especially in Asian countries.
• Low incomes at preliminary levels.
• Boost in marketing expenses to gain market share.

Alternative-2: Introduction of Click and Recommendations of Reviving Alitalia Italys Loss Making Airline Case Help Stores

Alternative 2 consists of the intro of online market places through generating a correct business's site. With the increased trends towards online shopping, the online stores like Amazon, Alibaba and so on could position an extreme danger to the market share of business. Furthermore, the rivals are moving towards click and Recommendations of Reviving Alitalia Italys Loss Making Airline Case Analysis stores with Space presenting Piperline. This shift towards online markets could reduce the profits for business. In this scenario the company might consider presenting Click and Recommendations of Reviving Alitalia Italys Loss Making Airline Case Analysis shops. These stores with a low requirement of funds to settle would enable the company to reach international markets, without ending its domestic stores. The benefits and drawbacks of alternative 2 are provided as follows;

Pros:

• Low investment
• Reducing competition threat
• Access to the world markets
• Increasing the size of customer base
• Easy to manage
• Big Profits
• Low Operating Costs
• Easy brand-new market entryway

Cons:

• Risk to the marketplace position
• Removal of brand name Individuality
• Removal of the fantastic store experience.
• Risk of decline in elite sales.

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

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

Pros:

• Minimizing competitors hazard
• Access to the world markets
• Expanding customer base
• Big Revenues
• Exploration of brand-new global markets.
• Boost in income from global markets.
• Income diversity.
• Step towards being a strong international brand.

Cons:

• Continuation of problems related to variety.
• Distinctions in cultures could led to a failure of the brand name specifically in Asian countries.
• Low profits at preliminary levels.
• Boost in marketing expenses to gain market share.



This is sample work and not applicable to real case study. Please place the order on the website to get your own originally done case solution.