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

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Porter's 5 Forces analysis of Renault-Volvo Strategic Alliance (B) September 1993 Case Study Analysis

A Porter's 5 Forces analysis of Renault-Volvo Strategic Alliance (B) September 1993 Case Solution could be carried out to develop numerous techniques utilizing the strengths of the business to obtain opportunities, conquer weak points and to reduce the risks. It might also be used to evaluate that how specific weaknesses withstand certain chances and increase the dangers. The strategies prepared utilizing the Porter's 5 Forces analysis of Renault-Volvo Strategic Alliance (B) September 1993 Case Help are offered as follows;
• Utilization of strong worldwide brand name position and funds in broadening towards prospective markets.
• Distinct brand name experience could help out the company to much better position itself in new markets.
• Resistance in growth in the prospective worldwide markets encouraging variety.
• High costs restricts the growth in different Asian and African countries with low per capita earnings.
• Strong brand name recognition, non-traditional methods of marketing and the distinct brand name experience could be used to decrease the threat from potential customers.
• Strict appearance policies might led to the consumer shift towards Victoria with high social obligation.
• Restricted target markets might led to a decline in the overall market share of the business.
These techniques 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 Renault-Volvo Strategic Alliance (B) September 1993 Case Analysis might be performed to examine the schedule of financial resources to the company that could be used in expansion towards worldwide markets. The financial position of the company might be assessed by using the data given in the case Exhibit 1. The ratios that could be thought about in financial performance analysis are given in the Table 1 listed below;

From the above Table 1, it could be seen that the company has a reasonable monetary efficiency with a ROE of 7.9% and a high sales development of 18.4%. Although, a 4.3% net profit margin does not appears to be possible and the company needs to put efforts in increasing its incomes together with lowering its operational expenditures to increase its earnings margins.

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

Segmentation

The division analysis consists of the analysis of numerous company sections of the company in domestic and the global, markets. The majority of the company's Traditional stores lie in US consisting of above 500 shops in practically each of the state of US. Nevertheless, the company has also a worldwide presence in 8 various nations with its highest number of shops located in United Kingdom i.e. 21. The companyhas an overall of 54 stores in international markets that is probably the 10% of its shops in the US. It suggests that majority of the profits of the business come from the local markets. Additionally, the business is considering to expand its stores into 7 more European and Asian nations. A chart showing the presence of the business in numerous worldwide markets is given up the Appendix 2.

Targeting

The company targets its clothing brand name to the young, tall and attractive teens and kids that are thought about to be cool. This targeting policy is accountable for numerous distinctions in the company related to its rivals. The business employs excellent looking guys and ladies for its shops and follows a stringent appearance policy to maintain tourist attraction of attractive individuals towards its shops and provide a special brand experience.

Positioning

The business has positioned its brand as a high-end brand targeting only a specific market segment. The business with its non-traditional methods of marketing through models and representatives posters its brand image as a luxury clothes brand targeted to the cool and attractive characters in society. This market position attracts numerous elite people towards the brand however it injures the company's position in numerous neighborhoods focused at the equality in society.

External Analysis

Competitor Analysis

Porter's 5 Forces analysis of Renault-Volvo Strategic Alliance (B) September 1993 Case Help deals with a lot of competition in the market with the presence of various number of competitors in the market. Space is likewise thought about to be a potential competitor in regional as well as in international; markets as the company is considering to move in the international markets.

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