Porter's 5 Forces analysis of Astral Records Ltd North America: Some Financial Concerns Case Analysis

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Porter's 5 Forces analysis of Astral Records Ltd North America: Some Financial Concerns Case Study Help

Porter's 5 Forces AnalysisA Porter's 5 Forces analysis of Astral Records Ltd North America: Some Financial Concerns Case Analysis might be performed to design numerous methods utilizing the strengths of the company to get chances, conquer weak points and to minimize the risks. It might also be used to examine that how certain weaknesses resist certain opportunities and increase the threats. The techniques prepared utilizing the Porter's 5 Forces analysis of Astral Records Ltd North America: Some Financial Concerns Case Analysis are given as follows;
• Usage of strong global brand position and financial resources in expanding towards prospective markets.
• Distinct brand experience could help out the business to much better position itself in new markets.
• Resistance in expansion in the possible worldwide markets encouraging diversity.
• High costs limits the growth in various Asian and African nations with low per capita earnings.
• Strong brand acknowledgment, non-traditional ways of marketing and the unique brand name experience might be made use of to minimize the hazard from prospective consumers.
• Stringent appearance policies could caused the customer shift towards Victoria with high social responsibility.
• Minimal target markets could caused a decrease in the overall 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


Monetary analysis for Porter's 5 Forces analysis of Astral Records Ltd North America: Some Financial Concerns Case Solution might be conducted to assess the availability of funds to the company that might be utilized in expansion towards international markets. The monetary position of the business could be examined by utilizing the data given in the case Exhibit 1. The ratios that could be considered in financial efficiency analysis are given up the Table 1 listed 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 growth of 18.4%. A 4.3% net profit margin does not seems to be prospective and the business must put efforts in increasing its incomes along with decreasing its functional expenditures to increase its revenue margins.

Porter's 5 Forces analysis of Astral Records Ltd North America: Some Financial Concerns Case Analysis

Segmentation

Many of the company's Brick and Mortar stores are located in US including above 500 shops in practically each of the state of US. The company has also an international presence in 8 various countries with its highest number of shops situated in United Kingdom i.e. 21. The companyhas an overall of 54 shops in worldwide markets that is probably the 10% of its shops in the United States.

Targeting


The company targets its clothing brand to the young, tall and attractive teens and kids that are thought about to be cool. This targeting policy is responsible for different differences in the company associated with its competitors. The company employs excellent looking males and women for its stores and follows a rigorous look policy to preserve destination of attractive individuals towards its shops and provide a distinct brand name experience.

Positioning


The business has actually placed its brand as a high-end brand targeting only a particular market segment. The business with its non-traditional ways of marketing through designs and representatives posters its brand name image as a high-end clothes brand targeted to the cool and good-looking characters in society. This market position attracts various elite individuals towards the brand but it harms the business's position in various neighborhoods focused at the equality in society.

External Analysis

Competitor Analysis


Porter's 5 Forces analysis of Astral Records Ltd North America: Some Financial Concerns Case Analysis faces a lot of competition in the market with the existence of numerous number of competitors in the market. Gap is also considered to be a potential rival in regional as well as in global; markets as the business is thinking about to shift in the international markets.



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