Recommendations of Akio Morita The Man Who Made Sony Case Analysis

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Recommendations of Akio Morita The Man Who Made Sony Case Study Analysis

On the basis of above internal and external analysis of the business in addition to the examination of numerous options, the company is suggested to think about alternative 3. As alternative 3 would allow the company to expand in international markets with no reduction in its regional revenues and any deterioration of its market position. By considering Alternative 3, the company might keep its shop experience and brand name originality. Nevertheless, it might also think about alternative 2 that could enable the company to access the marketplaces with no possible financial investment. The company might pursue alternative 1 which would allow the company to focus on possible international markets rather than the local markets but as the company is extremely reliant on the local markets with 90% of its stores in the US, there fore pursuing option 1 would result in the considerable decrease in business's income. The business is advised to consider alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of Akio Morita The Man Who Made Sony Case Help Stores

Growth towards global markets through opening new shops in other Europe and Asian nations with closing domestic stores is although a great alternative for increasing the global existence of the company. However, the closing of domestic stores could highly affect the revenues of the firm as above 90% of its stores lie domestically and closing those shops would ultimately minimize the earnings of the company. Moreover, the company has a long term market position in United States which can not be generated soon in the new markets. The choice would help the business to broaden in global markets in addition to the removal of problems raised in its local markets related to its variety. The pros and Cons for Option 1 are noted below;

Pros:

• Exploration of new international markets.
• Increase in profits from international markets.
• Removal of problems associated with diversity.
• Revenue diversity.
• Action towards being a strong worldwide brand.

Cons:

• Loss of extensive earnings from the regional markets.
• Increase in competitors.
• Distinctions in cultures might caused a failure of the brand especially in Asian countries.
• Low profits at preliminary levels.
• Increase in marketing expenditures to gain market share.

Alternative-2: Introduction of Click and Recommendations of Akio Morita The Man Who Made Sony Case Solution Stores

With the increased trends towards online shopping, the online shops like Amazon, Alibaba and so on could present a severe threat to the market share of business. In this scenario the business could consider introducing Click and Recommendations of Akio Morita The Man Who Made Sony Case Analysis stores. These shops with a low requirement of funds to settle would enable the business to reach global markets, without ending its domestic shops.

Pros:

• Low investment
• Reducing competitors danger
• Access to the world markets
• Expanding consumer base
• Easy to handle
• Large Revenues
• Low Operating Costs
• Easy brand-new market entrance

Cons:

• Hazard to the marketplace position
• Removal of brand name Originality
• Removal of the excellent store experience.
• Threat of decline in elite sales.

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

Another option that the business might consider, is to broaden towards the global markets without closing its domestic shops that contributes to the huge part of incomes of the company. The advantages and disadvantages connected to Alternative 3 are given listed below;

Pros:

• Decreasing competition threat
• Access to the world markets
• Increasing the size of consumer base
• Big Revenues
• Exploration of new international markets.
• Increase in earnings from international markets.
• Earnings diversification.
• Step towards being a strong international brand.

Cons:

• Continuation of concerns associated with variety.
• Distinctions in cultures could caused a failure of the brand especially in Asian countries.
• Low incomes at initial levels.
• Increase in marketing expenses to acquire market share.



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