Recommendations of Sabre Holdings: The Quest For New Business Models Case Help

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Recommendations of Sabre Holdings: The Quest For New Business Models Case Study Analysis

On the basis of above internal and external analysis of the company along with the evaluation of numerous options, the business is suggested to consider alternative 3. As alternative 3 would enable the company to expand in global markets without any decrease in its regional earnings and any wear and tear of its market position. The company might pursue alternative 1 which would enable the business to focus on potential worldwide markets rather than the local markets however as the company is highly reliant on the regional markets with 90% of its stores in the United States, there fore pursuing alternative 1 would result in the significant decrease in company's profits.

Aletrnative-1: Expanding International Brick and Recommendations of Sabre Holdings: The Quest For New Business Models Case Analysis Stores

Expansion towards international markets through opening new stores in other Europe and Asian nations with closing domestic stores is although a great alternative for increasing the worldwide existence of the business. The closing of domestic stores might highly affect the incomes of the company as above 90% of its stores are located locally and closing those shops would eventually decrease the profits of the company. Moreover, the business has a long term market position in US which can not be created quickly in the new markets. The choice would assist the business to expand in worldwide markets together with the removal of concerns raised in its local markets connected to its diversity. The advantages and disadvantages for Option 1 are listed below;

Pros:

• Exploration of new international markets.
• Increase in revenue from international markets.
• Elimination of issues associated with variety.
• Profits diversification.
• Action towards being a strong worldwide brand name.

Cons:

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

Alternative-2: Introduction of Click and Recommendations of Sabre Holdings: The Quest For New Business Models Case Help Stores

Alternative 2 includes the introduction of online market locations through generating an appropriate business's site. With the increased patterns towards online shopping, the online stores like Amazon, Alibaba and so on could pose a severe risk to the market share of business. Moreover, the rivals are shifting towards click and Recommendations of Sabre Holdings: The Quest For New Business Models Case Analysis shops with Gap presenting Piperline. This shift towards online markets might reduce the earnings for business. In this scenario the business might think about introducing Click and Recommendations of Sabre Holdings: The Quest For New Business Models Case Solution shops. These shops with a low requirement of funds to settle would allow the company to reach international markets, without ending its domestic stores. The benefits and drawbacks of alternative 2 are offered as follows;

Pros:

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

Cons:

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

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

Another alternative that the company could think about, is to broaden towards the global markets without closing its domestic stores that contributes to the huge part of incomes of the company. The pros and cons related to Alternative 3 are given below;

Pros:

• Reducing competition hazard
• Access to the world markets
• Increasing the size of customer base
• Large Earnings
• Exploration of brand-new worldwide markets.
• Increase in earnings from worldwide markets.
• Revenue diversity.
• Action towards being a strong international brand name.

Cons:

• Continuation of issues associated with diversity.
• Differences in cultures could caused a failure of the brand specifically in Asian nations.
• Low profits at preliminary levels.
• Increase in marketing expenses to get market share.



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