Recommendations of British Airways: A Journey In Procurement Transformation Case Analysis

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Recommendations of British Airways: A Journey In Procurement Transformation Case Study Help

On the basis of above internal and external analysis of the company along with the examination of different alternatives, the company is suggested to think about alternative 3. As alternative 3 would allow the company to expand in worldwide markets without any reduction in its regional incomes and any degeneration of its market position. The company might pursue alternative 1 which would make it possible for the company to focus on prospective global markets rather than the regional markets but as the company is extremely dependent on the regional markets with 90% of its shops in the US, there fore pursuing alternative 1 would result in the considerable decline in company's earnings.

Aletrnative-1: Expanding International Brick and Recommendations of British Airways: A Journey In Procurement Transformation Case Analysis Stores

Expansion towards international markets through opening new shops in other Europe and Asian countries with closing domestic shops is although an excellent option for increasing the international presence of the company. However, the closing of domestic shops might extremely affect the profits of the company as above 90% of its shops are located domestically and closing those shops would ultimately minimize the earnings of the company. Moreover, the business has a long term market position in United States which can not be generated quickly in the new markets. The option would help the business to expand in international markets along with the elimination of concerns raised in its local markets associated with its variety. The pros and Cons for Option 1 are listed below;

Pros:

• Expedition of new worldwide markets.
• Boost in income from worldwide markets.
• Removal of issues connected to diversity.
• Profits diversity.
• Action towards being a strong worldwide brand.

Cons:

• Loss of substantial earnings from the regional markets.
• Boost in competitors.
• Differences in cultures might caused a failure of the brand particularly in Asian nations.
• Low earnings at initial levels.
• Boost in marketing expenditures to acquire market share.

Alternative-2: Introduction of Click and Recommendations of British Airways: A Journey In Procurement Transformation Case Help Stores

With the increased patterns towards online shopping, the online shops like Amazon, Alibaba etc. might posture a serious threat to the market share of company. In this scenario the company could consider introducing Click and Recommendations of British Airways: A Journey In Procurement Transformation Case Solution shops. These stores with a low requirement of funds to settle would enable the company to reach worldwide markets, without ending its domestic shops.

Pros:

• Low investment
• Lowering competition hazard
• Access to the world markets
• Enlarging customer base
• Easy to manage
• Large Revenues
• Low Operating Costs
• Easy brand-new market entryway

Cons:

• Danger to the marketplace position
• Elimination of brand Individuality
• Elimination of the great shop experience.
• Risk of decrease in elite sales.

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

Another option that the business might think about, is to broaden towards the worldwide markets without closing its domestic shops that contributes to the huge part of profits of the company. The pros and cons associated with Alternative 3 are given listed below;

Pros:

• Decreasing competitors risk
• Access to the world markets
• Expanding consumer base
• Big Incomes
• Exploration of new international markets.
• Boost in revenue from international markets.
• Earnings diversification.
• Action towards being a strong international brand name.

Cons:

• Continuation of issues related to diversity.
• Distinctions in cultures could led to a failure of the brand name particularly in Asian nations.
• Low profits at preliminary levels.
• Increase in marketing expenditures to acquire market share.



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