Recommendations of Sony-Columbia Pictures Lesson From A Cross Border Acquisition Case Analysis

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Recommendations of Sony-Columbia Pictures Lesson From A Cross Border Acquisition Case Study Solution

On the basis of above internal and external analysis of the company in addition to the evaluation of numerous options, the business is suggested to think about alternative 3. As alternative 3 would permit the company to broaden in worldwide markets without any decrease in its regional revenues and any deterioration of its market position. By considering Alternative 3, the business could keep its shop experience and brand name individuality. It might likewise consider alternative 2 that might permit the business to access the markets without any possible investment. Although, the company might pursue alternative 1 which would allow the company to focus on potential international markets instead of the local markets but as the company is highly dependent on the regional markets with 90% of its shops in the US, there fore pursuing alternative 1 would lead to the considerable decline in business's profits. The company is recommended to think about alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of Sony-Columbia Pictures Lesson From A Cross Border Acquisition Case Analysis Stores

Growth towards global markets through opening brand-new shops in other Europe and Asian countries with closing domestic shops is although a great choice for increasing the international presence of the business. Nevertheless, the closing of domestic shops could extremely impact the revenues of the company as above 90% of its stores are located domestically and closing those stores would eventually lower the profits of the firm. Additionally, the company has a long term market position in US which can not be generated soon in the brand-new markets. The alternative would help the business to broaden in global markets together with the removal of problems raised in its regional markets connected to its diversity. The benefits and drawbacks for Option 1 are listed below;

Pros:

• Exploration of brand-new global markets.
• Boost in earnings from worldwide markets.
• Elimination of issues related to variety.
• Earnings diversity.
• Step towards being a strong worldwide brand name.

Cons:

• Loss of comprehensive earnings from the regional markets.
• Increase in competitors.
• Distinctions in cultures could caused a failure of the brand especially in Asian countries.
• Low earnings at preliminary levels.
• Boost in marketing expenditures to get market share.

Alternative-2: Introduction of Click and Recommendations of Sony-Columbia Pictures Lesson From A Cross Border Acquisition Case Analysis Stores

With the increased patterns towards online shopping, the online shops like Amazon, Alibaba and so on could position an extreme risk to the market share of company. In this situation the company might think about introducing Click and Recommendations of Sony-Columbia Pictures Lesson From A Cross Border Acquisition Case Help stores. These stores with a low requirement of funds to settle would allow the company to reach international markets, without ending its domestic shops.

Pros:

• Low investment
• Decreasing competitors threat
• Access to the world markets
• Increasing the size of customer base
• Easy to handle
• Big Revenues
• Low Operating Expense
• Easy brand-new market entrance

Cons:

• Risk to the marketplace position
• Removal of brand Originality
• Elimination of the fantastic store experience.
• Risk of decline 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 global markets without closing its domestic shops that contributes to the huge part of revenues of the business. The benefits and drawbacks connected to Alternative 3 are given listed below;

Pros:

• Reducing competitors risk
• Access to the world markets
• Enlarging customer base
• Big Incomes
• Expedition of brand-new global markets.
• Increase in profits from worldwide markets.
• Profits diversification.
• Step towards being a strong international brand name.

Cons:

• Extension of issues associated with diversity.
• Distinctions in cultures could resulted in a failure of the brand especially in Asian countries.
• Low profits at preliminary levels.
• Boost in marketing expenses to gain market share.



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