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

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

Porter's 5 Forces AnalysisA Porter's 5 Forces analysis of Renault-Volvo Strategic Alliance (A): March 1993 Case Solution could be carried out to create numerous methods utilizing the strengths of the company to avail opportunities, conquer weaknesses and to decrease the hazards. It might also be used to evaluate that how certain weaknesses withstand specific chances and increase the hazards. The methods prepared utilizing the Porter's 5 Forces analysis of Renault-Volvo Strategic Alliance (A): March 1993 Case Analysis are provided as follows;
• Usage of strong global brand position and funds in expanding towards possible markets.
• Distinct brand experience might assist the company to better position itself in brand-new markets.
• Resistance in expansion in the potential worldwide markets motivating diversity.
• High rates restricts the expansion in various Asian and African countries with low per capita income.
• Strong brand recognition, non-traditional methods of marketing and the distinct brand name experience might be made use of to minimize the threat from possible clients.
• Rigorous appearance policies could caused the consumer shift towards Victoria with high social duty.
• Minimal target markets could caused a decrease in the overall market share of the company.
These strategies might help 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 Renault-Volvo Strategic Alliance (A): March 1993 Case Help could be conducted to examine the availability of financial resources to the business that could be used in expansion towards worldwide markets. The monetary position of the business could be assessed by using the information given in the case Display 1. The ratios that might be thought about in monetary performance analysis are given up the Table 1 listed below;

From the above Table 1, it could be seen that the business has an affordable financial efficiency with a ROE of 7.9% and a high sales development 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 together with lowering its functional expenditures to increase its earnings margins.

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

Segmentation

Many of the business's Brick and Mortar shops are located in United States consisting of above 500 shops in nearly each of the state of United States. The company has likewise a worldwide existence in 8 various nations with its highest 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 company targets its clothing brand to the young, high and attractive teens and kids that are considered to be cool. This targeting policy is responsible for numerous distinctions in the company associated with its rivals. For example, the business employs good looking men and women for its stores and follows a strict appearance policy to keep destination of attractive individuals towards its stores and offer a special brand experience.

Positioning


The company has actually positioned its brand name as a high-end brand name targeting just a particular market sector. The business with its non-traditional ways of marketing through designs and representatives posters its brand image as a luxury clothes brand targeted to the cool and good-looking characters in society. Although, this market position attracts numerous elite individuals towards the brand name 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 Renault-Volvo Strategic Alliance (A): March 1993 Case Help faces a lot of competitors in the market with the existence of various number of competitors in the market. Gap is also considered to be a prospective rival in regional as well as in international; markets as the business is thinking about to move in the global markets.



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