Porter's 5 Forces analysis of Renault-Volvo Strategic Alliance (A) March 1993 Case Help

Disclaimer: This is only sample format for the case and not the actual case solution. Place your order on the website to get your own case solution originally solved.

Home >> Darden Business School >> Renault-Volvo Strategic Alliance (A) March 1993 >> Porter's 5 Forces analysis

Porter's 5 Forces analysis of Renault-Volvo Strategic Alliance (A) March 1993 Case Study Solution

A Porter's 5 Forces analysis of Renault-Volvo Strategic Alliance (A) March 1993 Case Analysis might be conducted to create different methods using the strengths of the business to avail opportunities, get rid of weaknesses and to reduce the risks. It might also be used to assess that how particular weak points resist particular opportunities and increase the threats. The methods prepared utilizing the Porter's 5 Forces analysis of Renault-Volvo Strategic Alliance (A) March 1993 Case Solution are offered as follows;
• Utilization of strong worldwide brand position and financial resources in expanding towards prospective markets.
• Special brand experience might help out the business to much better position itself in brand-new markets.
• Resistance in growth in the possible international markets motivating diversity.
• High rates limits the expansion in numerous Asian and African nations with low per capita income.
• Strong brand acknowledgment, non-traditional methods of marketing and the unique brand experience could be utilized to decrease the hazard from prospective customers.
• Rigorous look policies might resulted in the consumer shift towards Victoria with high social duty.
• Restricted target markets could led to a decline in the total market share of the company.
These techniques might 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 Renault-Volvo Strategic Alliance (A) March 1993 Case Solution could be carried out to evaluate the availability of funds to the business that might be used in growth towards international markets. The monetary position of the company might be assessed by utilizing the data given in the case Exhibit 1. The ratios that could be thought about in monetary efficiency analysis are given up the Table 1 listed below;

From the above Table 1, it might be seen that the company has a sensible monetary 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 possible and the company must put efforts in increasing its earnings in addition to minimizing its operational expenses to increase its revenue margins.

Porter's 5 Forces analysis of Renault-Volvo Strategic Alliance (A) March 1993 Case Solution

Segmentation

The division analysis includes the analysis of various service segments of the business in domestic and the worldwide, markets. The majority of the business's Physical stores lie in United States including above 500 shops in almost each of the state of United States. The company has also a worldwide existence in 8 various nations with its greatest number of shops located in United Kingdom i.e. 21. The companyhas an overall of 54 stores in global markets that is probably the 10% of its stores in the US. It implies that majority of the profits of the business come from the local markets. Moreover, the business is considering to broaden its shops into 7 more European and Asian countries. A chart revealing the presence of the business in numerous international markets is given in the Appendix 2.

Targeting

The business targets its clothing brand name to the young, high and attractive teenagers and kids that are thought about to be cool. This targeting policy is responsible for different distinctions in the business related to its competitors. For instance, the business employs great looking men and women for its shops and follows a stringent appearance policy to maintain tourist attraction of attractive individuals towards its shops and supply an unique brand experience.

Positioning

The business has actually placed its brand name as a high-end brand name targeting only a particular market section. The business with its non-traditional methods of marketing through models and representatives posters its brand name image as a high-end clothing brand targeted to the cool and good-looking characters in society. Although, this market position attracts numerous elite people towards the brand name however it harms the company's position in various neighborhoods focused at the equality in society.

External Analysis

Competitor Analysis

Porter's 5 Forces analysis of Renault-Volvo Strategic Alliance (A) March 1993 Case Solution deals with a lot of competitors in the market with the existence of numerous number of competitors in the market. Gap is likewise thought about to be a prospective competitor in local as well as in international; markets as the business is thinking about to shift in the global markets.

This is sample work and not applicable to real case study. Please place the order on the website to get your own originally done case solution.