Recommendations of Tonka Corporation Case Solution

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Recommendations of Tonka Corporation Case Study Analysis

RecommendationsOn the basis of above internal and external analysis of the business along with the evaluation of different alternatives, the business is advised to think about alternative 3. As alternative 3 would allow the business to broaden in international markets with no reduction in its local incomes and any wear and tear of its market position. By considering Alternative 3, the business could maintain its shop experience and brand originality. It could also think about alternative 2 that might allow the company to access the markets without any prospective investment. The company could pursue alternative 1 which would allow the company to focus on potential worldwide markets rather than the local markets however as the business is highly reliant on the local markets with 90% of its stores in the US, there fore pursuing option 1 would result in the significant decline in company's profits. The business is advised to think about alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of Tonka Corporation Case Help Stores

International SegmentsThe company has a long term market position in United States which can not be produced quickly in the new markets. The choice would assist the business to broaden in global markets along with the removal of concerns raised in its local markets related to its variety.

Pros:

• Exploration of new international markets.
• Increase in income from international markets.
• Removal of concerns related to variety.
• Earnings diversity.
• Step towards being a strong international brand.

Cons:

• Loss of substantial earnings from the regional markets.
• Boost in competitors.
• Differences in cultures could resulted in a failure of the brand name particularly in Asian countries.
• Low incomes at initial levels.
• Increase in marketing expenses to acquire market share.

Alternative-2: Introduction of Click and Recommendations of Tonka Corporation Case Analysis Stores

With the increased patterns towards online shopping, the online shops like Amazon, Alibaba and so on might present an extreme risk to the market share of business. In this circumstance the business could think about introducing Click and Recommendations of Tonka Corporation Case Solution stores. These shops with a low requirement of funds to settle would allow the company to reach international markets, without ending its domestic stores.

Pros:

• Low investment
• Decreasing competitors hazard
• Access to the world markets
• Increasing the size of customer base
• Easy to handle
• Large Earnings
• Low Operating Expense
• Easy brand-new market entryway

Cons:

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

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

Another alternative that the business could think about, is to expand towards the worldwide markets without closing its domestic stores that adds to the major part of revenues of the business. The pros and cons connected to Alternative 3 are offered listed below;

Pros:

• Reducing competition risk
• Access to the world markets
• Expanding consumer base
• Big Incomes
• Expedition of new global markets.
• Increase in revenue from international markets.
• Income diversity.
• Action towards being a strong worldwide brand.

Cons:

• Extension of problems connected to variety.
• Distinctions in cultures might led to a failure of the brand name particularly in Asian countries.
• Low revenues at initial levels.
• Boost in marketing expenditures to gain market share.



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