Porter's 5 Forces analysis of Lenovo Being On Top In A Declining Industry Case Analysis

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Porter's 5 Forces analysis of Lenovo Being On Top In A Declining Industry Case Study Solution

Porter's 5 Forces AnalysisA Porter's 5 Forces analysis of Lenovo Being On Top In A Declining Industry Case Help could be conducted to design numerous methods using the strengths of the business to avail chances, get rid of weaknesses and to decrease the risks. It might likewise be utilized to assess that how specific weak points withstand certain chances and increase the hazards. The techniques prepared utilizing the Porter's 5 Forces analysis of Lenovo Being On Top In A Declining Industry Case Analysis are given as follows;
• Utilization of strong international brand name position and financial resources in broadening towards possible markets.
• Distinct brand experience might help out the company to much better position itself in new markets.
• Resistance in expansion in the prospective worldwide markets motivating diversity.
• High costs limits the expansion in numerous Asian and African countries with low per capita earnings.
• Strong brand name recognition, non-traditional methods of marketing and the unique brand name experience could be utilized to lower the hazard from potential consumers.
• Strict appearance policies might resulted in the customer shift towards Victoria with high social responsibility.
• Restricted target markets might led to a decrease in the total market share of the business.
These methods might assist 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 Lenovo Being On Top In A Declining Industry Case Help might be performed to assess the availability of financial resources to the business that might be utilized in growth towards worldwide markets. The financial position of the company could be assessed by utilizing the data given up the case Exhibition 1. The ratios that might be considered in financial efficiency analysis are given in the Table 1 listed below;

From the above Table 1, it could be seen that the company has a reasonable monetary performance with a ROE of 7.9% and a high sales development of 18.4%. A 4.3% net earnings margin does not seems to be possible and the company must put efforts in increasing its revenues along with reducing its operational expenses to increase its profit margins.

Porter's 5 Forces analysis of Lenovo Being On Top In A Declining Industry Case Analysis

Segmentation

The division analysis consists of the analysis of numerous service sectors of the business in domestic and the international, markets. The majority of the company's Physical stores are located in United States consisting of above 500 stores in nearly each of the state of United States. The business has also a global presence in 8 various countries with its highest number of stores situated 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 earnings of the business come from the local markets. Additionally, the company is thinking about to expand its shops into 7 more European and Asian countries. A chart revealing the existence of the company in numerous worldwide markets is given up the Appendix 2.

Targeting


The business targets its clothing brand to the young, tall and good-looking teens and kids that are considered to be cool. This targeting policy is responsible for different distinctions in the company connected to its rivals. For example, the business hires great looking males and females for its stores and follows a strict appearance policy to keep destination of attractive individuals towards its stores and offer an unique brand experience.

Positioning


The business has placed its brand name as a high-end brand name targeting just a particular market section. The company with its non-traditional methods of marketing through designs and agents posters its brand name image as a high-end clothing brand targeted to the cool and good-looking characters in society. This market position draws in numerous elite people towards the brand however it injures the business's position in different neighborhoods focused at the equality in society.

External Analysis

Competitor Analysis


Porter's 5 Forces analysis of Lenovo Being On Top In A Declining Industry Case Solution faces a lot of competitors in the market with the presence of different number of rivals in the market. Gap is likewise considered to be a possible rival in regional as well as in global; markets as the company is considering to shift in the worldwide markets.



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