Recommendations of Sony: Towards A Networked Economy Case Help

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Recommendations of Sony: Towards A Networked Economy Case Study Solution

On the basis of above internal and external analysis of the business along with the assessment of various alternatives, the company is suggested to think about alternative 3. As alternative 3 would permit the company to broaden in worldwide markets without any reduction in its regional earnings and any deterioration of its market position. The business could pursue alternative 1 which would make it possible for the business to focus on potential global markets rather than the local markets but as the business is extremely reliant on the local markets with 90% of its shops in the US, there fore pursuing option 1 would result in the significant decrease in company's earnings.

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

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

Pros:

• Exploration of new worldwide markets.
• Boost in revenue from global markets.
• Elimination of problems connected to variety.
• Earnings diversification.
• Step towards being a strong worldwide brand name.

Cons:

• Loss of substantial incomes from the regional markets.
• Boost in competitors.
• Differences in cultures could led to a failure of the brand name particularly in Asian nations.
• Low earnings at preliminary levels.
• Boost in marketing expenses to acquire market share.

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

Alternative 2 consists of the intro of online market locations through creating a proper business's website. With the increased trends towards online shopping, the online stores like Amazon, Alibaba etc. could posture a severe threat to the market share of company. Furthermore, the competitors are shifting towards click and Recommendations of Sony: Towards A Networked Economy Case Analysis stores with Space introducing Piperline. This shift towards online markets might minimize the revenues for business. In this circumstance the business could consider introducing Click and Recommendations of Sony: Towards A Networked Economy Case Analysis shops. These stores with a low requirement of funds to settle would enable the business to reach worldwide markets, without ending its domestic shops. The advantages and disadvantages of option 2 are given as follows;

Pros:

• Low investment
• Decreasing competition threat
• Access to the world markets
• Expanding customer base
• Easy to handle
• Big Profits
• Low Operating Expense
• Easy new market entrance

Cons:

• Hazard to the marketplace position
• Elimination of brand Originality
• Elimination of the great shop experience.
• Danger of decline in elite sales.

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

Another alternative that the company could consider, is to expand towards the worldwide markets without closing its domestic shops that adds to the major part of incomes of the company. The benefits and drawbacks related to Alternative 3 are given below;

Pros:

• Lowering competition threat
• Access to the world markets
• Increasing the size of customer base
• Large Earnings
• Exploration of brand-new global markets.
• Increase in profits from worldwide markets.
• Profits diversity.
• Action towards being a strong worldwide brand name.

Cons:

• Extension of issues associated with variety.
• Distinctions in cultures might resulted in a failure of the brand name especially in Asian countries.
• Low profits at preliminary levels.
• Increase in marketing expenditures to get market share.



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