Porter's 5 Forces analysis of Diamond Chemicals Plc (A) And (B) Case Analysis

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Porter's 5 Forces analysis of Diamond Chemicals Plc (A) And (B) Case Study Analysis

A Porter's 5 Forces analysis of Diamond Chemicals Plc (A) And (B) Case Analysis could be carried out to develop various methods utilizing the strengths of the company to avail chances, overcome weaknesses and to reduce the risks. It might also be utilized to evaluate that how particular weaknesses resist specific chances and increase the dangers. The techniques drafted utilizing the Porter's 5 Forces analysis of Diamond Chemicals Plc (A) And (B) Case Analysis are provided as follows;
• Usage of strong worldwide brand position and funds in expanding towards possible markets.
• Special brand experience might assist the business to much better position itself in new markets.
• Resistance in expansion in the prospective international markets encouraging diversity.
• High costs limits the growth in different Asian and African countries with low per capita income.
• Strong brand name acknowledgment, non-traditional methods of marketing and the unique brand experience might be used to reduce the risk from potential customers.
• Strict appearance policies could led to the consumer shift towards Victoria with high social obligation.
• Limited target markets could resulted in a decrease in the overall market share of the business.
These strategies could help 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 Diamond Chemicals Plc (A) And (B) Case Analysis might be carried out to examine the accessibility of financial resources to the business that could be utilized in expansion towards international markets. The financial position of the company might be examined by using the information given up the case Exhibit 1. The ratios that might be thought about 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 financial efficiency with a ROE of 7.9% and a high sales development of 18.4%. Although, a 4.3% net earnings margin does not seems to be prospective and the company should put efforts in increasing its profits in addition to decreasing its functional expenditures to increase its earnings margins.

Porter's 5 Forces analysis of Diamond Chemicals Plc (A) And (B) Case Analysis

Segmentation

Many of the business's Brick and Mortar shops are situated in United States consisting of above 500 stores in nearly each of the state of United States. The business has likewise an international presence in 8 different countries with its greatest number of stores situated in United Kingdom i.e. 21. The companyhas a total of 54 stores in global markets that is probably the 10% of its stores in the United States.

Targeting

The business targets its clothing brand to the young, high and good-looking teens and kids that are thought about to be cool. This targeting policy is accountable for numerous distinctions in the company related to its competitors. For instance, the business works with good looking men and women for its stores and follows a stringent appearance policy to maintain tourist attraction of good-looking people towards its stores and provide a special brand name experience.

Positioning

The business has actually positioned its brand as a high-end brand targeting only a particular market segment. 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 attractive characters in society. This market position brings in numerous elite individuals towards the brand however it injures the business's position in various communities focused at the equality in society.

External Analysis

Competitor Analysis

Porter's 5 Forces analysis of Diamond Chemicals Plc (A) And (B) Case Help deals with a lot of competition in the market with the presence of different number of rivals in the market. A chart revealing the close competitors together with their attributes and the marketing method is given in. it might be seen that the American Eagle Outfitters is thought about to be the greatest competitors for company with its marketing strategy related to the tv shows. Gap is also thought about to be a prospective rival in regional as well as in international; markets as the business is considering to shift in the global markets. Along with it, Diamond Chemicals Plc (A) And (B) Case Study Help. with its flexible prices method and the Victoria's Street with its strong social status position a severe danger to the existing market share of the Porter's 5 Forces analysis of Diamond Chemicals Plc (A) And (B) Case Help.



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