Recommendations of Corning Inc: Zero Coupon Convertible Debentures Due November 8 2015 (A) Case Help

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Recommendations of Corning Inc: Zero Coupon Convertible Debentures Due November 8 2015 (A) Case Study Analysis

On the basis of above internal and external analysis of the company along with the assessment of various alternatives, the business is suggested to think about alternative 3. As alternative 3 would enable the business to expand in worldwide markets without any reduction in its regional revenues and any wear and tear of its market position. The business might pursue alternative 1 which would allow the business to focus on possible global markets rather than the regional markets but as the business is highly dependent on the regional markets with 90% of its shops in the US, there fore pursuing alternative 1 would result in the considerable decrease in business's revenue.

Aletrnative-1: Expanding International Brick and Recommendations of Corning Inc: Zero Coupon Convertible Debentures Due November 8 2015 (A) Case Help Stores

Growth towards worldwide markets through opening new shops in other Europe and Asian countries with closing domestic stores is although a great choice for increasing the worldwide existence of the company. Nevertheless, the closing of domestic stores might extremely impact the profits of the company as above 90% of its shops lie locally and closing those shops would eventually decrease the incomes of the firm. The company has a long term market position in US which can not be produced soon in the brand-new markets. The choice would help the company to broaden in international markets along with the removal of problems raised in its local markets connected to its variety. The pros and Cons for Alternative 1 are listed below;

Pros:

• Exploration of brand-new worldwide markets.
• Increase in profits from worldwide markets.
• Removal of concerns associated with variety.
• Revenue diversification.
• Step towards being a strong worldwide brand name.

Cons:

• Loss of substantial incomes from the regional markets.
• Increase in competition.
• Distinctions in cultures might led to a failure of the brand especially in Asian countries.
• Low incomes at preliminary levels.
• Boost in marketing expenses to acquire market share.

Alternative-2: Introduction of Click and Recommendations of Corning Inc: Zero Coupon Convertible Debentures Due November 8 2015 (A) Case Help Stores

With the increased patterns towards online shopping, the online shops like Amazon, Alibaba etc. could position a serious danger to the market share of company. In this situation the business might think about presenting Click and Recommendations of Corning Inc: Zero Coupon Convertible Debentures Due November 8 2015 (A) Case Solution stores. These shops with a low requirement of funds to settle would enable the business to reach global markets, without ending its domestic stores.

Pros:

• Low financial investment
• Lowering competition hazard
• Access to the world markets
• Expanding customer base
• Easy to manage
• Large Revenues
• Low Operating Expense
• Easy brand-new market entrance

Cons:

• Threat to the market position
• Removal of brand Originality
• Elimination of the fantastic shop experience.
• Danger of decline in elite sales.

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

Another alternative that the business could consider, is to broaden towards the international markets without closing its domestic shops that contributes to the huge part of earnings of the business. The pros and cons connected to Alternative 3 are given below;

Pros:

• Minimizing competition hazard
• Access to the world markets
• Increasing the size of consumer base
• Big Revenues
• Expedition of brand-new worldwide markets.
• Boost in income from international markets.
• Earnings diversification.
• Action towards being a strong worldwide brand name.

Cons:

• Extension of problems related to variety.
• Differences in cultures might led to a failure of the brand especially in Asian countries.
• Low earnings at preliminary levels.
• Increase in marketing expenditures to get market share.



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