Porter's 5 Forces analysis of Diamond Chemicals Plc (A) The Merseyside Project Case Help

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Porter's 5 Forces analysis of Diamond Chemicals Plc (A) The Merseyside Project Case Study Solution

A Porter's 5 Forces analysis of Diamond Chemicals Plc (A) The Merseyside Project Case Analysis might be performed to create numerous techniques utilizing the strengths of the company to obtain opportunities, get rid of weaknesses and to minimize the threats. It could also be utilized to assess that how specific weaknesses withstand particular opportunities and increase the risks. The strategies drafted using the Porter's 5 Forces analysis of Diamond Chemicals Plc (A) The Merseyside Project Case Analysis are provided as follows;
• Usage of strong international brand name position and financial resources in broadening towards possible markets.
• Unique brand experience could help out the business to better position itself in brand-new markets.
• Resistance in growth in the potential international markets encouraging diversity.
• High costs limits the growth in various Asian and African countries with low per capita earnings.
• Strong brand acknowledgment, non-traditional methods of marketing and the unique brand name experience could be utilized to decrease the hazard from possible consumers.
• Rigorous appearance policies might resulted in the consumer shift towards Victoria with high social responsibility.
• Restricted target audience might resulted in a decline in the total market share of the company.
These techniques 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 Diamond Chemicals Plc (A) The Merseyside Project Case Analysis might be carried out to evaluate the availability of funds to the business that could be made use of in expansion towards international markets. The monetary position of the company might be examined by utilizing the information given in the case Exhibit 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 company has an affordable financial efficiency with a ROE of 7.9% and a high sales growth of 18.4%. Although, a 4.3% net profit margin does not seems to be prospective and the company must put efforts in increasing its profits along with reducing its functional expenses to increase its earnings margins.

Porter's 5 Forces analysis of Diamond Chemicals Plc (A) The Merseyside Project Case Solution

Segmentation

The segmentation analysis includes the analysis of numerous business sectors of the business in domestic and the international, markets. The majority of the business's Physical shops lie in United States including above 500 stores in almost each of the state of US. However, the company has also a global existence in 8 various nations with its highest variety of stores situated in United Kingdom i.e. 21. The companyhas an overall of 54 shops in international markets that is probably the 10% of its shops in the US. It suggests that bulk of the incomes of the company come from the local markets. Moreover, the business is considering to expand its shops into 7 more European and Asian countries. A chart showing the existence of the business in various international markets is given in the Appendix 2.

Targeting

The business targets its clothes brand to the young, tall and good-looking teens and kids that are considered to be cool. This targeting policy is accountable for various distinctions in the business associated with its competitors. For example, the company hires good looking men and women for its shops and follows a stringent appearance policy to maintain tourist attraction of attractive individuals towards its stores and offer a distinct brand name experience.

Positioning

The company has actually positioned its brand as a high-end brand targeting just a particular market section. The business with its non-traditional methods of marketing through models and agents posters its brand name image as a luxury clothes brand targeted to the cool and good-looking characters in society. Although, this market position brings in different elite individuals towards the brand but it injures the company's position in various neighborhoods focused at the equality in society.

External Analysis

Competitor Analysis

Porter's 5 Forces analysis of Diamond Chemicals Plc (A) The Merseyside Project Case Help deals with a great deal of competitors in the market with the presence of various number of competitors in the market. A chart showing the close competitors along with their qualities and the marketing method is given up. it could be seen that the American Eagle Outfitters is considered to be the strongest rivals for business with its marketing strategy related to the television programs. Moreover, Space is also thought about to be a prospective rival in regional in addition to in international; markets as the company is thinking about to move in the global markets. In addition to it, Diamond Chemicals Plc (A) The Merseyside Project Case Study Solution. with its flexible pricing method and the Victoria's Street with its strong social status present an extreme threat to the present market share of the Porter's 5 Forces analysis of Diamond Chemicals Plc (A) The Merseyside Project Case Analysis.

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