Name of the Company: ACCELYA Complexity Simplified; Deadline:15/09/2017 Website: http://w3.accelya.com/

Introduction
In this report, the company that is being looked into is Accelya, which is into the business of consulting for
various business purposes. The specific business unit which is being looked into for the purpose of this report
is the financial consultancy which is provided by the firm for the entities in the airline industry. This is one of
the strategically most significant business unties for the firm and it is very important that this unit continues to
grow and thrive in terms of the business and revenue.
Currently this business unit is primarily focusing on the European and USA markets where it provides
consultancy for a number of large airlines. However the airlines industry in these parts of the world is fairly
stagnant due to significant degree of competition within the larger entities and within the smaller entities of
the market. This has led to the situation in which the airline industry in these parts of the world in spite of the
rapid growth, are not being able to achieve profitability which can be consistent and robust for the companies.
This is also disadvantageous for Accelya and the specific business unit which is being looked into. With lower
profitability for the companies, the requirement of financial consultancy is also shrinking fairly.
This has called for the company in expanding the business unit and its consultancy service to various other
parts of the world. This is the strategic plan that will be discussed here with the purpose of stating the various
factors related to the same. The strategic course that has been chosen for the purpose of this shift is
expansion into the emerging economies and chasing a specific emerging economy for the purpose of
expansion by the company to the same which will help the company in offering its services to a wider number
of client companies.
Key recommendations
The company needs to expand the business unit for consultancy service to the aviation industries to various
other parts of the world. This is the strategic plan that will be discussed here with the purpose of stating the
various factors related to the same. The strategic course that has been chosen for the purpose of this shift is
expansion into the emerging economies and chasing a specific emerging economy for the purpose of
expansion by the company to the same which will help the company in offering its services to a wider number
of client companies.
Basis various criteria it can be said that the preferred mode of market entry for Accelya in a chosen market will
be Direct Export or entering the market. It can be said that in view of the specific business model of the firm
the direct exporting will be the most suitable form of expansion for the company. There are various
advantages which can be derived out of the process.
The most important benefit of this is that the company will be able to realize the entire profits which are
higher in view of the fact all the intermediaries are eliminated from the system. Also the company will have
the highest form of control on all the aspects of the service provision and client management within the new
market. In view of the fact the company will get to know its customers the best through this process, this will
help the Accelya in customizing their service propositions for them and provider a better service level. Also in
this process the customers are sure about the firm which is providing the service and hence they feel more
secure while dealing directly with the firm. Alsop there is no chance of copying of IP by other firms in the new
market and this will provide the company with a significant degree of competitive advantage within the
market. Finally with the further development of the business in the new market, the company will have a lot
of flexibility for the improvement of the marketing efforts or redirecting the same.
India has a largely booming aviation industry which has been growing over the past decade at a significant
rate. Following are some of the salient factors of the aviation industry of India:
 Over the period of last 1 decade or so from the financial year 2006 to 2016 the traffic of domestic
passengers for the industry has increased at a CAGR of 11.46 per cent
 During the same period the growth of the traffic of international passengers was measured at CAGR of
8.33 per cent
 As per the Directorate General of Civil Aviation, traffic of domestic passengers went through a growth
of 22 per cent in the financial year 17 as compared to the 21.24 per cent during the financial year 16.
 During February 2017, the number of passengers carried by the domestic airlines was more than 8.23
million. This was growth of more than 23 per cent in comparison to the same period of the previous
year.
 During financial year 2017, traffic of domestic passengers increased by 22 per cent as compared to
growth rate of 21.24 per cent during financial year 2016.
 During financial year 2016, traffic for the international passengers had increased by 7.72 per cent.
All of these figures are indicative of the booming nature of the Indian aviation industry and from this point of
view it can be said that the India will be a very good industry for extending the consultancy for the aviation
companies.
In view of the fact there are a number of companies in the South Asian region including Bangladesh, Sri Lanka
which are in the growth phase it can be said that if anything goes wrong with the business plan in India the
unit can be relocated to any of these other countries and the resources used up on the same can be saved
significantly.
Elaboration
The strategic course which is being looked into in this report has 2 important considerations to it and these
are:
1. If business expansion to a new geographical region is the correct strategic course for the company or
not and the preferred mode for the same
2. If business expansion to a new...