Recommendations of Corning Inc: A Network Of Alliances Case Analysis

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Recommendations of Corning Inc: A Network Of Alliances Case Study Solution

On the basis of above internal and external analysis of the company along with the evaluation of numerous options, the company is suggested to consider alternative 3. As alternative 3 would allow the company to expand in worldwide markets without any decrease in its local incomes and any deterioration of its market position. The company could pursue alternative 1 which would make it possible for the business to focus on possible international markets rather than the local markets but as the business is extremely 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 business's profits.

Aletrnative-1: Expanding International Brick and Recommendations of Corning Inc: A Network Of Alliances Case Analysis Stores

Growth towards international markets through opening brand-new shops in other Europe and Asian countries with closing domestic stores is although a good alternative for increasing the global existence of the business. The closing of domestic shops could highly affect the incomes of the company as above 90% of its stores are situated locally and closing those shops would ultimately lower the profits of the firm. Additionally, the company has a long term market position in United States which can not be generated soon in the new markets. The choice would assist the business to expand in worldwide markets together with the removal of concerns raised in its regional markets connected to its variety. The benefits and drawbacks for Alternative 1 are listed below;

Pros:

• Exploration of brand-new international markets.
• Increase in profits from global markets.
• Elimination of issues connected to diversity.
• Income diversification.
• Action towards being a strong worldwide brand.

Cons:

• Loss of extensive incomes from the local markets.
• Boost in competitors.
• Differences in cultures could led to a failure of the brand name especially in Asian nations.
• Low incomes at initial levels.
• Increase in marketing expenses to gain market share.

Alternative-2: Introduction of Click and Recommendations of Corning Inc: A Network Of Alliances Case Help Stores

Alternative 2 includes the introduction of online market places through generating an appropriate business's website. With the increased trends towards online shopping, the online stores like Amazon, Alibaba and so on could present a serious hazard to the marketplace share of company. Furthermore, the competitors are shifting towards click and Recommendations of Corning Inc: A Network Of Alliances Case Solution stores with Gap introducing Piperline. This shift towards online markets could lower the earnings for company. In this scenario the company might think about introducing Click and Recommendations of Corning Inc: A Network Of Alliances Case Solution stores. These shops with a low requirement of funds to settle would allow the business to reach global markets, without ending its domestic shops. The benefits and drawbacks of option 2 are provided as follows;

Pros:

• Low financial investment
• Lowering competition threat
• Access to the world markets
• Enlarging customer base
• Easy to manage
• Large Earnings
• Low Operating Expense
• Easy brand-new market entrance

Cons:

• Threat to the market position
• Elimination of brand Uniqueness
• Removal of the fantastic shop experience.
• Threat of decrease in elite sales.

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

Another alternative that the company could consider, is to broaden towards the worldwide markets without closing its domestic stores that contributes to the major part of revenues of the business. The benefits and drawbacks associated with Alternative 3 are provided below;

Pros:

• Minimizing competitors threat
• Access to the world markets
• Increasing the size of customer base
• Large Incomes
• Expedition of brand-new worldwide markets.
• Increase in income from worldwide markets.
• Revenue diversification.
• Action towards being a strong worldwide brand.

Cons:

• Continuation of concerns connected to diversity.
• Differences in cultures could led to a failure of the brand name particularly in Asian nations.
• Low profits at preliminary levels.
• Boost in marketing expenses to acquire market share.



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