Recommendations of Sony Corporation Restructuring Continues Problems Remain Case Solution

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Recommendations of Sony Corporation Restructuring Continues Problems Remain Case Study Solution

On the basis of above internal and external analysis of the company along with the examination of different options, the company is recommended to consider alternative 3. As alternative 3 would allow the company to broaden in international markets without any reduction in its regional revenues and any wear and tear of its market position. The business could pursue alternative 1 which would allow the business to focus on prospective international markets rather than the local markets but as the company is highly dependent on the local markets with 90% of its stores in the United States, there fore pursuing alternative 1 would result in the substantial decline in company's revenue.

Aletrnative-1: Expanding International Brick and Recommendations of Sony Corporation Restructuring Continues Problems Remain Case Analysis Stores

Growth towards global markets through opening brand-new shops in other Europe and Asian countries with closing domestic stores is although a great choice for increasing the international existence of the company. Nevertheless, the closing of domestic stores might extremely impact the profits of the company as above 90% of its shops lie locally and closing those stores would ultimately lower the profits of the firm. The business has a long term market position in United States which can not be generated soon in the new markets. The alternative would help the company to expand in worldwide markets along with the elimination of problems raised in its local markets connected to its diversity. The pros and Cons for Option 1 are listed below;

Pros:

• Expedition of new worldwide markets.
• Increase in income from worldwide markets.
• Elimination of problems associated with diversity.
• Income diversification.
• Action towards being a strong global brand.

Cons:

• Loss of extensive earnings from the regional markets.
• Increase in competition.
• Distinctions in cultures might resulted in a failure of the brand particularly in Asian nations.
• Low incomes at preliminary levels.
• Boost in marketing expenses to acquire market share.

Alternative-2: Introduction of Click and Recommendations of Sony Corporation Restructuring Continues Problems Remain Case Help Stores

With the increased trends towards online shopping, the online shops like Amazon, Alibaba and so on could pose a severe hazard to the market share of company. In this circumstance the business could consider introducing Click and Recommendations of Sony Corporation Restructuring Continues Problems Remain Case Analysis shops. These shops with a low requirement of funds to settle would allow the business to reach international markets, without ending its domestic shops.

Pros:

• Low investment
• Reducing 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 entrance

Cons:

• Threat to the marketplace position
• Elimination of brand name Originality
• Elimination of the excellent store experience.
• Risk of decline in elite sales.

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

Another option that the company might think about, is to broaden towards the global markets without closing its domestic shops that adds to the huge part of profits of the company. The pros and cons connected to Alternative 3 are given listed below;

Pros:

• Reducing competition risk
• Access to the world markets
• Increasing the size of consumer base
• Big Earnings
• Exploration of brand-new global markets.
• Boost in revenue from worldwide markets.
• Income diversification.
• Action towards being a strong global brand name.

Cons:

• Continuation of problems associated with diversity.
• Distinctions in cultures might resulted in a failure of the brand name specifically in Asian countries.
• Low incomes at preliminary levels.
• Boost in marketing expenditures to get market share.



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