Recommendations of Restructuring Sony Case Help

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Recommendations of Restructuring Sony Case Study Solution

On the basis of above internal and external analysis of the business along with the evaluation of different options, the company is recommended to consider alternative 3. As alternative 3 would enable the company to expand in worldwide markets with no decrease in its regional profits and any degeneration of its market position. By thinking about Alternative 3, the company might keep its shop experience and brand originality. It could also consider alternative 2 that could enable the company to access the markets without any prospective investment. Although, the company could pursue alternative 1 which would allow the business to focus on prospective worldwide markets instead of the regional markets but as the business is highly dependent on the local markets with 90% of its shops in the United States, there fore pursuing option 1 would result in the considerable decrease in company's revenue. The business is recommended to think about alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of Restructuring Sony Case Help Stores

Expansion towards international markets through opening brand-new shops in other Europe and Asian nations with closing domestic stores is although a great alternative for increasing the global presence of the business. Nevertheless, the closing of domestic shops might extremely affect the profits of the firm as above 90% of its stores are located locally and closing those shops would eventually lower the incomes of the company. The business has a long term market position in US which can not be produced quickly in the brand-new markets. The choice would help the company to broaden in global markets in addition to the elimination of concerns raised in its local markets connected to its diversity. The advantages and disadvantages for Alternative 1 are listed below;

Pros:

• Exploration of new international markets.
• Increase in earnings from international markets.
• Elimination of issues related to variety.
• Income diversification.
• Step towards being a strong worldwide brand name.

Cons:

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

Alternative-2: Introduction of Click and Recommendations of Restructuring Sony Case Help Stores

With the increased trends towards online shopping, the online stores like Amazon, Alibaba and so on might position a serious threat to the market share of company. In this circumstance the business could think about introducing Click and Recommendations of Restructuring Sony Case Analysis shops. These shops with a low requirement of funds to settle would make it possible for the business to reach worldwide markets, without ending its domestic stores.

Pros:

• Low financial investment
• Decreasing competitors danger
• Access to the world markets
• Increasing the size of consumer base
• Easy to manage
• Big Earnings
• Low Operating Expense
• Easy new market entrance

Cons:

• Danger to the marketplace position
• Elimination of brand Individuality
• Elimination of the terrific shop experience.
• Threat of decrease in elite sales.

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

Another alternative that the company might think about, is to expand towards the worldwide markets without closing its domestic stores that adds to the major part of profits of the company. The advantages and disadvantages associated with Alternative 3 are offered below;

Pros:

• Lowering competition risk
• Access to the world markets
• Expanding consumer base
• Large Earnings
• Exploration of new worldwide markets.
• Boost in revenue from worldwide markets.
• Income diversification.
• Action towards being a strong international brand name.

Cons:

• Extension of problems connected to variety.
• Differences in cultures might caused a failure of the brand name especially in Asian nations.
• Low incomes at preliminary levels.
• Increase in marketing expenses to gain market share.



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