Recommendations of Reviving Alitalia: Italys Loss Making Airline Case Solution

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Recommendations of Reviving Alitalia: Italys Loss Making Airline Case Study Help

On the basis of above internal and external analysis of the business in addition to the assessment of numerous options, the business is recommended to think about alternative 3. As alternative 3 would enable the company to broaden in global markets with no reduction in its local profits and any wear and tear of its market position. By considering Alternative 3, the business could keep its shop experience and brand originality. Nevertheless, it might also consider alternative 2 that might permit the company to access the marketplaces without any possible financial investment. Although, the business might pursue alternative 1 which would allow the business to concentrate on prospective worldwide markets instead of the local markets but as the company is extremely dependent on the local markets with 90% of its stores in the US, there fore pursuing option 1 would result in the substantial decline in business's earnings. The business is recommended to think about alternative 3.

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

Growth towards global markets through opening brand-new stores in other Europe and Asian countries with closing domestic shops is although a good option for increasing the international presence of the business. Nevertheless, the closing of domestic stores might extremely affect the earnings of the firm as above 90% of its stores lie locally and closing those stores would ultimately lower the revenues of the company. The business has a long term market position in United States which can not be produced quickly in the brand-new markets. The alternative would help the company to expand in worldwide markets along with the elimination of concerns raised in its local markets associated with its variety. The benefits and drawbacks for Option 1 are listed below;

Pros:

• Expedition of brand-new global markets.
• Boost in revenue from international markets.
• Elimination of problems connected to variety.
• Profits diversification.
• Step towards being a strong global brand name.

Cons:

• Loss of substantial revenues from the local markets.
• Increase in competitors.
• Differences in cultures might led to a failure of the brand name specifically in Asian countries.
• Low profits at initial levels.
• Increase in marketing expenses to acquire market share.

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

With the increased trends towards online shopping, the online shops like Amazon, Alibaba etc. might position an extreme danger to the market share of company. In this situation the company could consider introducing Click and Recommendations of Reviving Alitalia: Italys Loss Making Airline Case Solution stores. These shops with a low requirement of funds to settle would enable the business to reach global markets, without ending its domestic stores.

Pros:

• Low financial investment
• Minimizing competition risk
• Access to the world markets
• Enlarging customer base
• Easy to manage
• Big Revenues
• Low Operating Costs
• Easy new market entryway

Cons:

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

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

Another choice that the business might think about, is to broaden towards the worldwide markets without closing its domestic shops that adds to the huge part of profits of the business. The benefits and drawbacks associated with Alternative 3 are provided below;

Pros:

• Reducing competitors risk
• Access to the world markets
• Increasing the size of consumer base
• Large Revenues
• Exploration of new international markets.
• Increase in income from global markets.
• Profits diversification.
• Step towards being a strong international brand.

Cons:

• Continuation of concerns related to diversity.
• Distinctions in cultures could led to a failure of the brand specifically in Asian nations.
• Low earnings at preliminary levels.
• Increase in marketing expenses to acquire market share.



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