Recommendations of Philips Versus Matsushita: The Competitive Battle Continues Case Solution

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Recommendations of Philips Versus Matsushita: The Competitive Battle Continues Case Study Analysis

On the basis of above internal and external analysis of the company along with the assessment of different options, the business is suggested to think about alternative 3. As alternative 3 would permit the company to expand in international markets without any decrease in its local incomes and any degeneration of its market position. The company could pursue alternative 1 which would allow the company to focus on potential international markets rather than the local markets but as the business is extremely reliant on the regional markets with 90% of its stores in the US, there fore pursuing alternative 1 would result in the significant decrease in business's revenue.

Aletrnative-1: Expanding International Brick and Recommendations of Philips Versus Matsushita: The Competitive Battle Continues Case Help Stores

Growth towards international markets through opening brand-new stores in other Europe and Asian nations with closing domestic stores is although a great option for increasing the global presence of the company. The closing of domestic stores might highly affect the incomes of the firm as above 90% of its shops are located locally and closing those shops would eventually reduce the earnings of the company. The business has a long term market position in US which can not be generated soon in the brand-new markets. The alternative would help the company to expand in international markets in addition to the removal of issues raised in its local markets connected to its variety. The pros and Cons for Alternative 1 are noted below;

Pros:

• Expedition of new worldwide markets.
• Increase in revenue from global markets.
• Elimination of issues related to variety.
• Revenue diversity.
• Action towards being a strong global brand name.

Cons:

• Loss of substantial incomes from the local markets.
• Increase in competitors.
• Distinctions in cultures could resulted in a failure of the brand particularly in Asian nations.
• Low incomes at preliminary levels.
• Boost in marketing expenses to get market share.

Alternative-2: Introduction of Click and Recommendations of Philips Versus Matsushita: The Competitive Battle Continues Case Analysis Stores

With the increased patterns towards online shopping, the online stores like Amazon, Alibaba etc. could posture a serious danger to the market share of business. In this situation the business could think about presenting Click and Recommendations of Philips Versus Matsushita: The Competitive Battle Continues Case Analysis stores. These shops with a low requirement of funds to settle would allow the company to reach worldwide markets, without ending its domestic stores.

Pros:

• Low financial investment
• Lowering competition danger
• Access to the world markets
• Enlarging consumer base
• Easy to manage
• Large Revenues
• Low Operating Expense
• Easy brand-new market entrance

Cons:

• Threat to the marketplace position
• Removal of brand Individuality
• Elimination of the terrific store experience.
• Risk of decline in elite sales.

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

Another choice that the company might consider, is to broaden towards the global markets without closing its domestic stores that adds to the major part of incomes of the company. The benefits and drawbacks related to Alternative 3 are provided listed below;

Pros:

• Minimizing competitors threat
• Access to the world markets
• Increasing the size of consumer base
• Big Incomes
• Expedition of new global markets.
• Increase in revenue from international markets.
• Revenue diversification.
• Action towards being a strong worldwide brand name.

Cons:

• Continuation of concerns related to diversity.
• Distinctions in cultures could resulted in a failure of the brand name specifically in Asian nations.
• Low incomes at initial levels.
• Boost in marketing expenditures to get market share.



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