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

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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 Help could be conducted to create numerous techniques using the strengths of the company to obtain chances, conquer weak points and to lower the hazards. It might likewise be used to examine that how certain weak points resist specific chances and increase the risks. The strategies prepared utilizing the Porter's 5 Forces analysis of Diamond Chemicals Plc (A): The Merseyside Project Case Solution are offered as follows;
• Utilization of strong global brand name position and financial resources in expanding towards prospective markets.
• Unique brand name experience might assist the company to better position itself in new markets.
• Resistance in growth in the prospective international markets motivating variety.
• High costs limits the expansion in various Asian and African countries with low per capita earnings.
• Strong brand acknowledgment, non-traditional ways of marketing and the unique brand name experience could be made use of to decrease the danger from possible customers.
• Strict appearance policies might resulted in the consumer shift towards Victoria with high social obligation.
• Restricted target markets might resulted in a decline in the total market share of the business.
These techniques could assist the business 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): The Merseyside Project Case Solution could be conducted to examine the accessibility of funds to the business that might be used in growth towards global markets. The financial position of the company could be assessed by utilizing the information 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 an affordable financial efficiency with a ROE of 7.9% and a high sales growth of 18.4%. Although, a 4.3% net earnings margin does not seems to be prospective and the company must put efforts in increasing its incomes in addition to decreasing its functional costs to increase its profit margins.

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

Segmentation

Most of the business's Brick and Mortar stores are located in US consisting of above 500 stores in practically each of the state of United States. The company has likewise an international presence in 8 various nations with its greatest number of stores located in United Kingdom i.e. 21. The companyhas a total of 54 shops in worldwide markets that is most likely the 10% of its stores in the United States.

Targeting

The business targets its clothing brand name to the young, high and good-looking teens and kids that are thought about to be cool. This targeting policy is responsible for different differences in the business connected to its competitors. The business hires good looking men and women for its stores and follows a rigorous look policy to maintain attraction of attractive individuals towards its shops and offer a distinct brand name experience.

Positioning

The company has placed its brand name as a high-end brand targeting only a particular market segment. The business with its non-traditional ways of marketing through designs and agents posters its brand name image as a luxury clothing brand targeted to the cool and attractive personalities in society. This market position brings in different elite individuals towards the brand name however it hurts the business's position in numerous communities 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 lot of competition in the market with the presence of various number of rivals in the market. Gap is also thought about to be a prospective competitor in regional as well as in international; markets as the business is considering to shift in the international markets.

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