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

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

On the basis of above internal and external analysis of the company along with the examination of numerous alternatives, the company is suggested to think about alternative 3. As alternative 3 would permit the business to broaden in global markets without any decrease in its local earnings and any deterioration of its market position. The company could pursue alternative 1 which would make it possible for the business to focus on possible global markets rather than the regional markets but as the business is highly dependent on the regional markets with 90% of its shops in the United States, there fore pursuing alternative 1 would result in the considerable decline in business's revenue.

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

Growth towards worldwide markets through opening new stores in other Europe and Asian nations with closing domestic stores is although a good alternative for increasing the worldwide presence of the business. The closing of domestic shops might highly affect the earnings of the firm as above 90% of its stores are situated locally and closing those stores would ultimately lower the earnings of the firm. Moreover, the company has a long term market position in US which can not be generated soon in the brand-new markets. The choice would assist the business to expand in worldwide markets together with the elimination of concerns raised in its regional markets related to its variety. The benefits and drawbacks for Option 1 are noted below;

Pros:

• Expedition of new worldwide markets.
• Boost in profits from worldwide markets.
• Elimination of problems related to diversity.
• Revenue diversification.
• Step towards being a strong global brand name.

Cons:

• Loss of extensive earnings from the local markets.
• Boost in competitors.
• Differences in cultures might resulted in a failure of the brand specifically in Asian countries.
• Low profits at initial levels.
• Increase in marketing expenditures to gain 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 trends towards online shopping, the online stores like Amazon, Alibaba etc. might position an extreme risk to the market share of business. In this scenario the business might think about presenting Click and Recommendations of Sony-Columbia Pictures: Lesson From A Cross Border Acquisition Case Analysis shops. These stores with a low requirement of funds to settle would make it possible for the company to reach global 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 handle
• Big Profits
• Low Operating Costs
• Easy brand-new market entryway

Cons:

• Hazard to the market position
• Elimination of brand name Uniqueness
• Elimination of the terrific store experience.
• Danger of decline in elite sales.

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

Another choice that the business might consider, is to expand towards the global markets without closing its domestic shops that adds to the major part of profits of the company. The benefits and drawbacks associated with Alternative 3 are offered listed below;

Pros:

• Decreasing competitors hazard
• Access to the world markets
• Increasing the size of consumer base
• Big Profits
• Exploration of new worldwide markets.
• Boost in earnings from worldwide markets.
• Income diversity.
• Action towards being a strong global brand.

Cons:

• Continuation of problems connected to variety.
• Distinctions in cultures could resulted in a failure of the brand name specifically in Asian countries.
• Low revenues at initial levels.
• Boost in marketing expenditures to gain market share.



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