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 Help

On the basis of above internal and external analysis of the company in addition to the evaluation of different options, the company is advised to think about alternative 3. As alternative 3 would allow the business to broaden in worldwide markets without any decrease in its regional earnings and any wear and tear of its market position. By considering Alternative 3, the business might maintain its shop experience and brand name originality. Nevertheless, it could also think about alternative 2 that might allow the business to access the markets without any potential financial investment. Although, the business could pursue alternative 1 which would make it possible for the company to focus on possible worldwide markets instead of the local markets but as the business is extremely depending on the local markets with 90% of its stores in the US, there fore pursuing alternative 1 would lead to the substantial decrease in company's revenue. For that reason, the company is suggested to consider alternative 3.

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

Growth towards international markets through opening new shops in other Europe and Asian nations with closing domestic shops is although a good choice for increasing the worldwide presence of the company. The closing of domestic shops might highly impact the incomes of the company as above 90% of its shops are situated domestically and closing those stores would eventually reduce the earnings of the firm. Furthermore, the company has a long term market position in US which can not be generated soon in the new markets. The option would help the business to expand in worldwide markets along with the elimination of issues raised in its regional markets associated with its variety. The benefits and drawbacks for Alternative 1 are noted below;

Pros:

• Expedition of new international markets.
• Boost in profits from international markets.
• Removal of issues connected to diversity.
• Profits diversity.
• Step towards being a strong worldwide brand name.

Cons:

• Loss of substantial revenues from the regional markets.
• Boost in competition.
• Differences in cultures could caused a failure of the brand especially in Asian countries.
• Low earnings at initial levels.
• Increase 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 Help Stores

With the increased trends towards online shopping, the online shops like Amazon, Alibaba and so on could posture a serious hazard to the market share of company. In this situation the company might think about presenting Click and Recommendations of Sony-Columbia Pictures: Lessons From A Cross Border Acquisition Case Solution stores. These stores with a low requirement of funds to settle would allow the company to reach global markets, without ending its domestic shops.

Pros:

• Low investment
• Decreasing competition danger
• Access to the world markets
• Enlarging customer base
• Easy to manage
• Large Revenues
• Low Operating Costs
• Easy new market entryway

Cons:

• Threat to the market position
• Elimination of brand Originality
• Elimination of the excellent shop experience.
• Risk of decrease in elite sales.

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

Another option that the company might consider, is to expand towards the worldwide markets without closing its domestic stores that contributes to the huge part of earnings of the company. The advantages and disadvantages related to Alternative 3 are offered below;

Pros:

• Minimizing competitors risk
• Access to the world markets
• Enlarging customer base
• Big Revenues
• Expedition of brand-new worldwide markets.
• Increase in income from global markets.
• Revenue diversification.
• Action towards being a strong international brand name.

Cons:

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



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