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

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

On the basis of above internal and external analysis of the company together with the assessment of numerous alternatives, the company is advised to consider alternative 3. As alternative 3 would enable the company to broaden in worldwide markets without any decrease in its local revenues and any degeneration of its market position. By thinking about Alternative 3, the company could preserve its store experience and brand name uniqueness. However, it might also consider alternative 2 that could allow the company to access the markets without any potential investment. Although, the business could pursue alternative 1 which would enable the business to concentrate on potential worldwide markets instead of the local markets but as the business is highly based on the regional markets with 90% of its shops in the United States, there fore pursuing alternative 1 would result in the significant decline in company's profits. For that reason, the business is suggested to consider alternative 3.

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

The business has a long term market position in US which can not be generated quickly in the new markets. The alternative would help the company to expand in global markets along with the elimination of issues raised in its regional markets related to its diversity.

Pros:

• Expedition of new worldwide markets.
• Boost in revenue from international markets.
• Elimination of concerns associated with variety.
• Revenue diversity.
• Action towards being a strong global brand name.

Cons:

• Loss of substantial profits from the regional markets.
• Increase in competition.
• Distinctions in cultures might caused a failure of the brand particularly in Asian countries.
• Low incomes at initial levels.
• Increase in marketing expenditures to gain market share.

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

With the increased patterns towards online shopping, the online shops like Amazon, Alibaba and so on could posture an extreme danger to the market share of company. In this situation the company might consider introducing Click and Recommendations of Tcl-Thomson Electronics Corporation: A Failed Joint Venture Case Solution stores. These shops with a low requirement of funds to settle would enable the business to reach worldwide markets, without ending its domestic shops.

Pros:

• Low investment
• Minimizing competition risk
• Access to the world markets
• Enlarging customer base
• Easy to manage
• Large Revenues
• Low Operating Expense
• Easy brand-new market entryway

Cons:

• Danger to the market position
• Removal of brand Individuality
• Removal of the fantastic 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 broaden towards the international markets without closing its domestic stores that adds to the major part of revenues of the company. The pros and cons associated with Alternative 3 are offered listed below;

Pros:

• Reducing competitors threat
• Access to the world markets
• Expanding customer base
• Big Incomes
• Expedition of new worldwide markets.
• Increase in revenue from worldwide markets.
• Revenue diversity.
• Action towards being a strong international brand name.

Cons:

• Extension of issues related to diversity.
• Differences in cultures might caused a failure of the brand especially in Asian countries.
• Low revenues at initial levels.
• Increase in marketing expenses to gain market share.



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