Porter's 5 Forces analysis of Traxon Asia Ltd Case Analysis

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Porter's 5 Forces analysis of Traxon Asia Ltd Case Study Solution

A Porter's 5 Forces analysis of Traxon Asia Ltd Case Solution could be carried out to create numerous techniques utilizing the strengths of the company to get chances, conquer weaknesses and to minimize the dangers. It might likewise be utilized to assess that how particular weaknesses withstand particular chances and increase the threats. The strategies drafted utilizing the Porter's 5 Forces analysis of Traxon Asia Ltd Case Solution are offered as follows;
• Usage of strong international brand name position and financial resources in expanding towards prospective markets.
• Unique brand name experience could assist the company to better position itself in brand-new markets.
• Resistance in growth in the prospective worldwide markets motivating variety.
• High rates limits the expansion in various Asian and African countries with low per capita income.
• Strong brand recognition, non-traditional ways of marketing and the distinct brand name experience might be used to decrease the risk from potential clients.
• Strict appearance policies could led to the consumer shift towards Victoria with high social duty.
• Limited target audience might caused a decline in the total market share of the company.
These methods could assist the company 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 Traxon Asia Ltd Case Help could be performed to assess the schedule of financial resources to the company that might be made use of in growth towards worldwide markets. The monetary position of the company could be examined by using the data given up the case Exhibition 1. The ratios that might be thought about in financial performance analysis are given up the Table 1 listed below;

From the above Table 1, it might be seen that the business has a sensible monetary efficiency 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 potential and the company needs to put efforts in increasing its revenues along with lowering its functional costs to increase its profit margins.

Porter's 5 Forces analysis of Traxon Asia Ltd Case Solution

Segmentation

The segmentation analysis includes the analysis of numerous organisation sectors of the company in domestic and the global, markets. The majority of the company's Traditional stores are located in US including above 500 stores in almost each of the state of United States. However, the company has likewise an international presence in 8 different countries with its greatest number of stores located in United Kingdom i.e. 21. The companyhas a total of 54 stores in worldwide markets that is probably the 10% of its shops in the US. It implies that majority of the profits of the company originated from the regional markets. Moreover, the company is thinking about to expand its stores into 7 more European and Asian countries. A chart revealing the presence of the business in different worldwide markets is given in the Appendix 2.

Targeting

The business targets its clothing brand to the young, high and good-looking teenagers and kids that are considered to be cool. This targeting policy is accountable for different differences in the company related to its rivals. The business works with excellent looking guys and ladies for its shops and follows a rigorous appearance policy to maintain tourist attraction of attractive individuals towards its shops and provide an unique brand experience.

Positioning

The company has positioned its brand name as a high-end brand targeting only a specific market sector. The business with its non-traditional methods of marketing through models and representatives posters its brand image as a high-end clothes brand targeted to the cool and good-looking personalities in society. This market position brings in various elite individuals towards the brand name however it injures the business's position in various neighborhoods focused at the equality in society.

External Analysis

Competitor Analysis

Porter's 5 Forces analysis of Traxon Asia Ltd Case Analysis faces a lot of competitors in the market with the existence of numerous number of competitors in the market. Gap is likewise considered to be a possible rival in local as well as in global; markets as the business is considering to move in the global markets.

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