Recommendations of Sony Corporation: Restructuring Continues Problems Remain Case Solution

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Recommendations of Sony Corporation: Restructuring Continues Problems Remain Case Study Help

On the basis of above internal and external analysis of the business along with the examination of various options, the business is advised to consider alternative 3. As alternative 3 would permit the business to expand in international markets without any decrease in its regional incomes and any wear and tear of its market position. By considering Alternative 3, the business might keep its shop experience and brand uniqueness. It could also consider alternative 2 that could permit the business to access the markets without any possible investment. The business might pursue alternative 1 which would make it possible for the business to focus on potential worldwide markets rather than the local markets however as the company is highly reliant on the local markets with 90% of its stores in the United States, there fore pursuing alternative 1 would result in the substantial decrease in company's earnings. For that reason, the business is suggested to think about alternative 3.

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

Growth towards international markets through opening new stores in other Europe and Asian nations with closing domestic shops is although a good option for increasing the global existence of the business. The closing of domestic shops might extremely impact the incomes of the firm as above 90% of its shops are situated locally and closing those stores would eventually reduce the profits of the company. Furthermore, the company has a long term market position in United States which can not be produced soon in the new markets. The choice would help the company to expand in worldwide markets along with the elimination of concerns raised in its regional markets connected to its variety. The advantages and disadvantages for Option 1 are listed below;

Pros:

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

Cons:

• Loss of extensive revenues from the regional markets.
• Increase in competition.
• Differences in cultures could resulted in a failure of the brand especially in Asian countries.
• Low profits at preliminary levels.
• Boost in marketing expenses to gain market share.

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

Alternative 2 consists of the introduction of online market places through generating a proper company's site. With the increased trends towards online shopping, the online shops like Amazon, Alibaba etc. could posture a severe risk to the market share of company. The competitors are shifting towards click and Recommendations of Sony Corporation: Restructuring Continues Problems Remain Case Solution stores with Space introducing Piperline. This shift towards online markets could lower the incomes for company. In this situation the business might think about presenting 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 worldwide markets, without ending its domestic stores. The pros and cons of option 2 are given as follows;

Pros:

• Low investment
• Minimizing competitors danger
• Access to the world markets
• Increasing the size of customer base
• Easy to manage
• Large Earnings
• Low Operating Expense
• Easy new market entryway

Cons:

• Hazard to the market position
• Removal of brand Individuality
• Removal of the terrific store experience.
• Threat of decline in elite sales.

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

Another option that the company could consider, is to broaden towards the international markets without closing its domestic stores that adds to the major part of revenues of the company. The advantages and disadvantages connected to Alternative 3 are provided listed below;

Pros:

• Lowering competition threat
• Access to the world markets
• Enlarging consumer base
• Large Profits
• Exploration of new global markets.
• Boost in profits from international markets.
• Profits diversification.
• Action towards being a strong worldwide brand name.

Cons:

• Extension of problems connected to variety.
• Differences in cultures might caused a failure of the brand specifically in Asian countries.
• Low profits at initial levels.
• Boost in marketing expenses to gain market share.



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