Recommendations of Sony Towards A Networked Economy Case Solution

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Recommendations of Sony Towards A Networked Economy Case Study Solution

RecommendationsOn the basis of above internal and external analysis of the company together with the assessment of various options, the company is advised to consider alternative 3. As alternative 3 would enable the company to expand in global markets with no decrease in its regional revenues and any deterioration of its market position. By thinking about Alternative 3, the company could maintain its shop experience and brand name individuality. However, it might likewise think about alternative 2 that could allow the business to access the marketplaces without any potential financial investment. Although, the company could pursue alternative 1 which would make it possible for the company to focus on potential international markets rather than the regional markets however as the business is extremely depending on the local markets with 90% of its stores in the United States, there fore pursuing alternative 1 would lead to the substantial decline in company's profits. The company is recommended to think about alternative 3.

Aletrnative-1: Expanding International Brick and Recommendations of Sony Towards A Networked Economy Case Solution Stores

International SegmentsThe business has a long term market position in United States which can not be created soon in the brand-new markets. The alternative would assist the company to broaden in worldwide markets along with the removal of issues raised in its regional markets related to its diversity.

Pros:

• Expedition of brand-new worldwide markets.
• Boost in revenue from global markets.
• Removal of problems related to variety.
• Revenue diversification.
• Step towards being a strong global brand name.

Cons:

• Loss of extensive incomes from the regional markets.
• Increase in competitors.
• Differences in cultures could resulted in a failure of the brand name especially in Asian countries.
• Low profits at initial levels.
• Boost in marketing expenditures to gain market share.

Alternative-2: Introduction of Click and Recommendations of Sony Towards A Networked Economy Case Solution Stores

With the increased patterns towards online shopping, the online stores like Amazon, Alibaba and so on might pose a serious danger to the market share of company. In this situation the business might consider introducing Click and Recommendations of Sony Towards A Networked Economy Case Solution shops. These shops with a low requirement of funds to settle would make it possible for the business to reach global markets, without ending its domestic stores.

Pros:

• Low investment
• Lowering competition risk
• Access to the world markets
• Enlarging consumer base
• Easy to handle
• Big Incomes
• Low Operating Costs
• Easy brand-new market entryway

Cons:

• Threat to the marketplace position
• Removal of brand Uniqueness
• Elimination of the fantastic shop experience.
• Danger 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 worldwide markets without closing its domestic shops that adds to the huge part of revenues of the company. The pros and cons associated with Alternative 3 are given listed below;

Pros:

• Lowering competitors danger
• Access to the world markets
• Enlarging consumer base
• Big Profits
• Expedition of brand-new worldwide markets.
• Boost in revenue from global markets.
• Earnings diversity.
• Action towards being a strong international brand.

Cons:

• Extension of issues associated with diversity.
• Differences in cultures could caused a failure of the brand specifically in Asian countries.
• Low revenues at initial levels.
• Increase in marketing expenses to get market share.



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