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

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

On the basis of above internal and external analysis of the company in addition to the examination of various alternatives, the company is advised to consider alternative 3. As alternative 3 would enable the business to broaden in worldwide markets without any reduction in its local profits and any deterioration of its market position. By thinking about Alternative 3, the business could maintain its shop experience and brand originality. However, it could also think about alternative 2 that could allow the business to access the markets without any possible investment. Although, the business could pursue alternative 1 which would make it possible for the company to concentrate on possible global markets instead of the regional markets however as the company is highly depending on the local markets with 90% of its shops in the US, there fore pursuing alternative 1 would lead to the significant decrease in business's profits. For that reason, the company is advised to consider alternative 3.

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

The business has a long term market position in United States which can not be produced soon in the new markets. The option would help the company to broaden in global markets along with the removal of issues raised in its regional markets related to its diversity.

Pros:

• Exploration of brand-new international markets.
• Boost in earnings from international markets.
• Removal of concerns associated with variety.
• Earnings diversification.
• Action towards being a strong international brand name.

Cons:

• Loss of comprehensive profits from the local markets.
• Boost in competitors.
• Distinctions in cultures could resulted in a failure of the brand especially in Asian countries.
• Low incomes at initial 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 (B) Case Help Stores

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

Pros:

• Low financial investment
• Reducing competition danger
• Access to the world markets
• Enlarging consumer base
• Easy to manage
• Big Incomes
• Low Operating Costs
• Easy new market entryway

Cons:

• Hazard to the market position
• Elimination of brand Uniqueness
• Removal of the great store experience.
• Risk of decrease in elite sales.

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

Another choice that the business could consider, is to expand towards the worldwide markets without closing its domestic stores that contributes to the major part of incomes of the company. The pros and cons connected to Alternative 3 are offered listed below;

Pros:

• Minimizing competition hazard
• Access to the world markets
• Enlarging consumer base
• Large Revenues
• Expedition of new worldwide markets.
• Boost in income from worldwide markets.
• Revenue diversification.
• Action towards being a strong international brand.

Cons:

• Extension of problems connected to diversity.
• Distinctions in cultures could caused a failure of the brand specifically in Asian nations.
• Low profits at initial levels.
• Boost in marketing expenses to gain market share.



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