Porter's 5 Forces analysis of Tencents Business Model Case Analysis

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Porter's 5 Forces analysis of Tencents Business Model Case Study Solution

A Porter's 5 Forces analysis of Tencents Business Model Case Solution could be carried out to develop numerous strategies using the strengths of the business to obtain opportunities, get rid of weak points and to reduce the risks. It might also be used to assess that how particular weaknesses withstand particular opportunities and increase the threats. The strategies prepared utilizing the Porter's 5 Forces analysis of Tencents Business Model Case Solution are provided as follows;
• Utilization of strong global brand position and funds in broadening towards prospective markets.
• Unique brand name experience might assist the business to much better position itself in brand-new markets.
• Resistance in expansion in the potential global markets encouraging variety.
• High rates limits the growth in various Asian and African countries with low per capita income.
• Strong brand name acknowledgment, non-traditional ways of marketing and the distinct brand name experience could be made use of to minimize the risk from possible clients.
• Strict appearance policies could resulted in the customer shift towards Victoria with high social duty.
• Restricted target markets might led to a decrease in the total market share of the business.
These methods could help the company to improvise its market position and be at the leading position in the market.

Financial Analysis

Monetary analysis for Porter's 5 Forces analysis of Tencents Business Model Case Solution could be performed to examine the accessibility of financial resources to the company that might be utilized in growth towards worldwide markets. The financial position of the company could be examined by utilizing the data given in the case Exhibition 1. The ratios that might be considered in monetary efficiency analysis are given up the Table 1 below;

From the above Table 1, it might be seen that the business has a reasonable monetary efficiency with a ROE of 7.9% and a high sales development of 18.4%. Although, a 4.3% net revenue margin does not seems to be potential and the company needs to put efforts in increasing its earnings along with reducing its functional expenditures to increase its revenue margins.

Porter's 5 Forces analysis of Tencents Business Model Case Analysis

Segmentation

Most of the company's Brick and Mortar shops are situated in United States consisting of above 500 stores in nearly each of the state of US. The company has also a global existence in 8 various countries with its highest number of stores located in United Kingdom i.e. 21. The companyhas a total of 54 shops in worldwide markets that is probably the 10% of its stores in the US.

Targeting

The business targets its clothing brand name to the young, tall and good-looking teens and kids that are thought about to be cool. This targeting policy is responsible for various distinctions in the company associated with its competitors. For instance, the business employs good looking men and women for its shops and follows a strict appearance policy to keep tourist attraction of good-looking individuals towards its shops and provide a distinct brand experience.

Positioning

The business has placed its brand name as a high-end brand name targeting only a specific market sector. The business with its non-traditional methods of marketing through models and agents posters its brand name image as a high-end clothing brand targeted to the cool and attractive personalities in society. Although, this market position attracts different elite people towards the brand name but it injures the company's position in numerous communities focused at the equality in society.

External Analysis

Competitor Analysis

Porter's 5 Forces analysis of Tencents Business Model Case Analysis deals with a lot of competitors in the market with the presence of various number of competitors in the market. Gap is likewise considered to be a potential rival in local as well as in international; markets as the company is considering to move in the international markets.



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