Recommendations of The Delta And Northwest Airlines Merger Case Analysis

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Recommendations of The Delta And Northwest Airlines Merger Case Study Solution

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

Aletrnative-1: Expanding International Brick and Recommendations of The Delta And Northwest Airlines Merger Case Analysis Stores

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 assist the business to broaden in international markets along with the removal of issues raised in its local markets related to its variety.

Pros:

• Exploration of new global markets.
• Boost in revenue from global markets.
• Removal of issues associated with variety.
• Profits diversification.
• Step towards being a strong worldwide brand.

Cons:

• Loss of extensive revenues from the local markets.
• Boost in competition.
• Differences in cultures might caused a failure of the brand specifically in Asian nations.
• Low earnings at initial levels.
• Increase in marketing expenses to gain market share.

Alternative-2: Introduction of Click and Recommendations of The Delta And Northwest Airlines Merger Case Help 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 circumstance the company could think about presenting Click and Recommendations of The Delta And Northwest Airlines Merger Case Analysis stores. These shops with a low requirement of funds to settle would enable the company to reach worldwide markets, without ending its domestic shops.

Pros:

• Low investment
• Decreasing competition threat
• Access to the world markets
• Enlarging consumer base
• Easy to handle
• Large Earnings
• Low Operating Expense
• Easy new market entrance

Cons:

• Danger to the marketplace position
• Elimination of brand Individuality
• Elimination of the great store experience.
• Danger of decline in elite sales.

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

Another option that the company might consider, is to expand towards the global markets without closing its domestic stores that adds to the huge part of earnings of the company. The pros and cons connected to Alternative 3 are given listed below;

Pros:

• Minimizing competition risk
• Access to the world markets
• Enlarging customer base
• Large Earnings
• Exploration of new global markets.
• Boost in earnings from global markets.
• Earnings diversification.
• Step towards being a strong international brand name.

Cons:

• Extension of concerns associated with diversity.
• Distinctions in cultures might caused a failure of the brand specifically in Asian countries.
• Low profits at preliminary levels.
• Increase in marketing expenses to gain market share.



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