Recommendations of Sony Corporation: Losing Competitive Advantage Case Solution

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Recommendations of Sony Corporation: Losing Competitive Advantage Case Study Solution

On the basis of above internal and external analysis of the company along with the examination of various alternatives, the business is suggested to think about alternative 3. As alternative 3 would permit the business to broaden in global markets without any reduction in its regional earnings and any deterioration of its market position. The business could pursue alternative 1 which would enable the company to focus on prospective international markets rather than the regional markets however as the business is highly dependent on the regional markets with 90% of its shops in the US, there fore pursuing alternative 1 would result in the significant decline in business's income.

Aletrnative-1: Expanding International Brick and Recommendations of Sony Corporation: Losing Competitive Advantage Case Solution Stores

The company has a long term market position in United States which can not be produced quickly in the new markets. The choice would assist the company to expand in international markets along with the removal of issues raised in its local markets related to its variety.

Pros:

• Exploration of new international markets.
• Increase in income from international markets.
• Elimination of problems related to diversity.
• Income diversification.
• Action towards being a strong global brand.

Cons:

• Loss of comprehensive incomes from the local markets.
• Increase in competition.
• Differences in cultures might led to a failure of the brand specifically in Asian countries.
• Low profits at preliminary levels.
• Increase in marketing expenditures to get market share.

Alternative-2: Introduction of Click and Recommendations of Sony Corporation: Losing Competitive Advantage Case Solution Stores

With the increased patterns towards online shopping, the online stores like Amazon, Alibaba and so on could position a serious hazard to the market share of company. In this situation the company could consider introducing Click and Recommendations of Sony Corporation: Losing Competitive Advantage Case Solution shops. These stores with a low requirement of funds to settle would enable the company to reach worldwide markets, without ending its domestic stores.

Pros:

• Low investment
• Reducing competitors hazard
• Access to the world markets
• Increasing the size of customer base
• Easy to manage
• Large Revenues
• Low Operating Costs
• Easy brand-new market entrance

Cons:

• Danger to the marketplace position
• Elimination of brand name Individuality
• Removal of the excellent shop experience.
• Risk of decline in elite sales.

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

Another alternative that the business could consider, is to expand towards the international markets without closing its domestic stores that adds to the huge part of incomes of the company. The pros and cons related to Alternative 3 are offered below;

Pros:

• Minimizing competitors risk
• Access to the world markets
• Enlarging consumer base
• Large Revenues
• Exploration of new global markets.
• Increase in income from international markets.
• Revenue diversity.
• Step towards being a strong international brand.

Cons:

• Extension of problems related to diversity.
• Differences in cultures could resulted in a failure of the brand particularly in Asian countries.
• Low earnings at preliminary levels.
• Boost in marketing expenditures to gain market share.



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