Porter's 5 Forces analysis of Disney Losing Magic In The Middle Kingdom Case Help

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Porter's 5 Forces analysis of Disney Losing Magic In The Middle Kingdom Case Study Solution

Porter's 5 Forces AnalysisA Porter's 5 Forces analysis of Disney Losing Magic In The Middle Kingdom Case Help could be conducted to design different strategies using the strengths of the company to obtain opportunities, overcome weak points and to minimize the risks. It could also be used to examine that how specific weaknesses withstand particular chances and increase the risks. The techniques drafted using the Porter's 5 Forces analysis of Disney Losing Magic In The Middle Kingdom Case Analysis are provided as follows;
• Usage of strong international brand name position and funds in expanding towards prospective markets.
• Special brand experience could help out the business to much better position itself in new markets.
• Resistance in growth in the possible global markets motivating variety.
• High rates restricts the expansion in numerous Asian and African countries with low per capita income.
• Strong brand name recognition, non-traditional ways of marketing and the special brand name experience could be made use of to lower the danger from potential consumers.
• Rigorous look policies could led to the customer shift towards Victoria with high social duty.
• Restricted target audience could caused a decrease in the total market share of the company.
These strategies could help the business to improvise its market position and be at the leading position in the market.

Financial Analysis


Financial analysis for Porter's 5 Forces analysis of Disney Losing Magic In The Middle Kingdom Case Analysis could be performed to evaluate the availability of financial resources to the business that could be made use of in growth towards international markets. The monetary position of the company could be examined by utilizing the data given up the case Exhibition 1. The ratios that could be thought about in monetary efficiency analysis are given up the Table 1 below;

From the above Table 1, it might be seen that the company has a reasonable financial performance with a ROE of 7.9% and a high sales growth of 18.4%. A 4.3% net profit margin does not appears to be prospective and the company needs to put efforts in increasing its profits along with lowering its operational costs to increase its earnings margins.

Porter's 5 Forces analysis of Disney Losing Magic In The Middle Kingdom Case Solution

Segmentation

The segmentation analysis includes the analysis of various organisation sectors of the business in domestic and the worldwide, markets. Most of the company's Physical stores are located in US consisting of above 500 stores in almost each of the state of United States. The company has likewise an international presence in 8 various countries with its highest number of shops located in United Kingdom i.e. 21. The companyhas a total of 54 stores in international markets that is most likely the 10% of its stores in the United States. It indicates that majority of the incomes of the company originated from the local markets. Furthermore, the business is thinking about to broaden its shops into 7 more European and Asian countries. A chart showing the existence of the business in various international markets is given in the Appendix 2.

Targeting


The company targets its clothing brand name to the young, high and good-looking teens and kids that are thought about to be cool. This targeting policy is accountable for different differences in the company related to its rivals. The company works with great looking males and females for its stores and follows a strict look policy to keep attraction of attractive individuals towards its stores and supply an unique brand name experience.

Positioning


The company has actually positioned its brand as a high-end brand name targeting only a particular market sector. The company with its non-traditional methods of marketing through models and representatives posters its brand image as a luxury clothing brand targeted to the cool and attractive personalities in society. Although, this market position brings in various elite people towards the brand name but it hurts the company's position in various neighborhoods focused at the equality in society.

External Analysis

Competitor Analysis


Porter's 5 Forces analysis of Disney Losing Magic In The Middle Kingdom Case Solution deals with a lot of competition in the market with the existence of various number of competitors in the market. Space is also thought about to be a prospective competitor in local as well as in global; markets as the business is considering to move in the worldwide markets.



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