Recommendations of The Air France-Klm Merger Story Case Solution

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Recommendations of The Air France-Klm Merger Story Case Study Help

On the basis of above internal and external analysis of the business together with the examination of different alternatives, the company is suggested to think about alternative 3. As alternative 3 would enable the business to broaden in worldwide markets without any reduction in its local profits and any wear and tear of its market position. By considering Alternative 3, the business could maintain its shop experience and brand originality. Nevertheless, it might also consider alternative 2 that could enable the business to access the markets without any prospective financial investment. The business could pursue alternative 1 which would make it possible for the business to focus on possible international markets rather than the regional markets but as the company is extremely reliant on the regional markets with 90% of its shops in the US, there fore pursuing option 1 would result in the substantial decrease in company's earnings. The company is recommended to think about alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of The Air France-Klm Merger Story Case Help Stores

Growth towards worldwide markets through opening brand-new shops in other Europe and Asian nations with closing domestic stores is although a good choice for increasing the global presence of the business. Nevertheless, the closing of domestic shops could extremely affect the incomes of the company as above 90% of its shops lie locally and closing those shops would eventually decrease the revenues of the firm. The company has a long term market position in United States which can not be created soon in the brand-new markets. The alternative would help the business to expand in worldwide markets along with the removal of concerns raised in its regional markets connected to its variety. The pros and Cons for Option 1 are noted below;

Pros:

• Expedition of new worldwide markets.
• Boost in income from worldwide markets.
• Removal of problems connected to variety.
• Income diversification.
• Step towards being a strong international brand name.

Cons:

• Loss of extensive profits from the regional markets.
• Increase in competition.
• Distinctions in cultures could resulted in a failure of the brand specifically in Asian countries.
• Low profits at initial levels.
• Increase in marketing expenses to gain market share.

Alternative-2: Introduction of Click and Recommendations of The Air France-Klm Merger Story Case Help Stores

With the increased patterns towards online shopping, the online shops like Amazon, Alibaba etc. could pose an extreme hazard to the market share of business. In this circumstance the company could think about introducing Click and Recommendations of The Air France-Klm Merger Story Case Help stores. These stores with a low requirement of funds to settle would enable the company to reach global markets, without ending its domestic stores.

Pros:

• Low financial investment
• Decreasing competition threat
• Access to the world markets
• Enlarging customer base
• Easy to handle
• Large Earnings
• Low Operating Costs
• Easy new market entryway

Cons:

• Risk to the marketplace position
• Removal of brand name Originality
• Elimination of the terrific shop experience.
• Risk of decline in elite sales.

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

Another alternative that the business might think about, is to broaden towards the global markets without closing its domestic stores that adds to the major part of profits of the company. The pros and cons connected to Alternative 3 are provided below;

Pros:

• Lowering competition risk
• Access to the world markets
• Increasing the size of consumer base
• Large Earnings
• Exploration of new global markets.
• Boost in income from worldwide markets.
• Revenue diversification.
• Step towards being a strong worldwide brand.

Cons:

• Extension of issues associated with diversity.
• Differences in cultures could resulted in a failure of the brand specifically in Asian countries.
• Low incomes at initial levels.
• Boost in marketing expenditures to acquire market share.



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