Recommendations of Tcl-Thomson Electronics Corporation A Failed Joint Venture Case Solution

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Recommendations of Tcl-Thomson Electronics Corporation A Failed Joint Venture Case Study Help

On the basis of above internal and external analysis of the company along with the assessment of different alternatives, the business is recommended to consider alternative 3. As alternative 3 would enable the company to expand in worldwide markets without any decrease in its local profits and any degeneration of its market position. The company might pursue alternative 1 which would enable the company to focus on potential international markets rather than the local markets but as the company is extremely dependent on the regional markets with 90% of its shops in the US, there fore pursuing option 1 would result in the considerable decrease in business's income.

Aletrnative-1: Expanding International Brick and Recommendations of Tcl-Thomson Electronics Corporation A Failed Joint Venture Case Analysis Stores

The business has a long term market position in United States which can not be created soon in the new markets. The choice would assist the company to expand in worldwide markets along with the removal of problems raised in its local markets related to its variety.

Pros:

• Exploration of new global markets.
• Boost in income from international markets.
• Elimination of issues connected to variety.
• Revenue diversity.
• Action towards being a strong global brand name.

Cons:

• Loss of extensive earnings from the regional markets.
• Boost in competition.
• Distinctions in cultures could led to a failure of the brand name particularly in Asian countries.
• Low revenues at initial levels.
• Boost in marketing expenses to get market share.

Alternative-2: Introduction of Click and Recommendations of Tcl-Thomson Electronics Corporation A Failed Joint Venture Case Help Stores

Alternative 2 consists of the introduction of online market places through creating a proper company's website. With the increased patterns towards online shopping, the online shops like Amazon, Alibaba etc. might position an extreme hazard to the market share of business. Furthermore, the rivals are moving towards click and Recommendations of Tcl-Thomson Electronics Corporation A Failed Joint Venture Case Help shops with Gap introducing Piperline. This shift towards online markets might lower the revenues for company. In this scenario the business could consider introducing Click and Recommendations of Tcl-Thomson Electronics Corporation A Failed Joint Venture Case Solution shops. These stores with a low requirement of funds to settle would make it possible for the business to reach global markets, without ending its domestic shops. The pros and cons of alternative 2 are provided as follows;

Pros:

• Low financial investment
• Decreasing competition threat
• Access to the world markets
• Enlarging customer base
• Easy to handle
• Big Incomes
• Low Operating Costs
• Easy brand-new market entryway

Cons:

• Danger to the market position
• Elimination of brand name Uniqueness
• Elimination of the terrific shop experience.
• Threat of decrease in elite sales.

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

Another alternative that the business could think about, is to broaden towards the international markets without closing its domestic stores that adds to the huge part of profits of the company. The pros and cons connected to Alternative 3 are given listed below;

Pros:

• Lowering competitors risk
• Access to the world markets
• Increasing the size of consumer base
• Large Profits
• Expedition of new worldwide markets.
• Boost in profits from global markets.
• Earnings diversification.
• Action towards being a strong international brand name.

Cons:

• Continuation of concerns related to variety.
• Distinctions in cultures might caused a failure of the brand specifically in Asian nations.
• Low profits at preliminary levels.
• Increase in marketing expenses to get market share.



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