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

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

On the basis of above internal and external analysis of the business along with the assessment of various alternatives, the business is advised to consider alternative 3. As alternative 3 would allow the business to broaden in global markets without any decrease in its local profits and any wear and tear of its market position. The company might pursue alternative 1 which would enable the company to focus on prospective international markets rather than the local markets however as the business is highly dependent on the regional markets with 90% of its stores in the US, there fore pursuing option 1 would result in the substantial decline in business's profits.

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

Expansion towards worldwide markets through opening new shops in other Europe and Asian nations with closing domestic stores is although a great option for increasing the international existence of the company. However, the closing of domestic shops might highly impact the incomes of the company as above 90% of its shops lie locally and closing those shops would eventually minimize the profits of the company. The company has a long term market position in United States which can not be created soon in the new markets. The choice would help the business to expand in worldwide markets together with the removal of problems raised in its regional markets connected to its variety. The pros and Cons for Option 1 are noted below;

Pros:

• Exploration of new international markets.
• Increase in profits from worldwide markets.
• Removal of concerns associated with diversity.
• Income diversification.
• Action towards being a strong international brand name.

Cons:

• Loss of extensive incomes from the regional markets.
• Increase in competition.
• Distinctions in cultures could led to a failure of the brand especially in Asian nations.
• Low profits at preliminary levels.
• Boost in marketing expenses to acquire market share.

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

Alternative 2 consists of the intro of online market places through generating an appropriate company's site. With the increased patterns towards online shopping, the online stores like Amazon, Alibaba etc. could posture a serious hazard to the market share of business. Moreover, the competitors are moving towards click and Recommendations of Sony-Columbia Pictures Lessons From A Cross Border Acquisition Case Help stores with Space introducing Piperline. This shift towards online markets could decrease the earnings for business. In this circumstance the business could consider introducing Click and Recommendations of Sony-Columbia Pictures Lessons From A Cross Border Acquisition Case Solution shops. These stores with a low requirement of funds to settle would allow the business to reach worldwide markets, without ending its domestic shops. The pros and cons of alternative 2 are given as follows;

Pros:

• Low financial investment
• Reducing competitors hazard
• Access to the world markets
• Expanding consumer base
• Easy to manage
• Big Profits
• Low Operating Costs
• Easy brand-new market entryway

Cons:

• Risk to the market position
• Elimination of brand name Uniqueness
• Elimination of the great shop experience.
• Risk of decrease in elite sales.

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

Another option that the company could consider, is to expand towards the global markets without closing its domestic shops that contributes to the huge part of earnings of the business. The advantages and disadvantages associated with Alternative 3 are given listed below;

Pros:

• Reducing competition hazard
• Access to the world markets
• Increasing the size of customer base
• Big Earnings
• Exploration of new international markets.
• Boost in profits from global markets.
• Income diversification.
• Step towards being a strong international brand name.

Cons:

• Continuation of problems associated with diversity.
• Differences in cultures might resulted in a failure of the brand especially in Asian nations.
• Low profits at preliminary levels.
• Increase in marketing expenses to gain market share.



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