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

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

Porter's 5 Forces AnalysisA Porter's 5 Forces analysis of Renault-Volvo Strategic Alliance (B): September 1993 Case Help could be performed to create numerous strategies using the strengths of the business to get chances, overcome weaknesses and to decrease the threats. It could also be used to assess that how certain weak points resist particular opportunities and increase the threats. The techniques prepared utilizing the Porter's 5 Forces analysis of Renault-Volvo Strategic Alliance (B): September 1993 Case Analysis are offered as follows;
• Usage of strong global brand name position and financial resources in expanding towards possible markets.
• Special brand experience might help out the company to much better position itself in brand-new markets.
• Resistance in expansion in the prospective international markets motivating diversity.
• High rates restricts the growth in different Asian and African nations with low per capita earnings.
• Strong brand name acknowledgment, non-traditional methods of marketing and the unique brand experience could be utilized to reduce the risk from potential customers.
• Strict look policies might resulted in the consumer shift towards Victoria with high social duty.
• Restricted target markets might caused a decrease in the total market share of the business.
These methods might assist 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 Renault-Volvo Strategic Alliance (B): September 1993 Case Analysis might be carried out to evaluate the schedule of funds to the company that could be used in expansion towards worldwide markets. The financial position of the company could be evaluated by utilizing the data given in the case Exhibition 1. The ratios that might be considered in financial efficiency analysis are given in the Table 1 listed below;

From the above Table 1, it might be seen that the company has an affordable monetary performance with a ROE of 7.9% and a high sales development of 18.4%. A 4.3% net earnings margin does not seems to be prospective and the company should put efforts in increasing its earnings along with minimizing its functional expenditures to increase its revenue margins.

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

Segmentation

The division analysis includes the analysis of different service segments of the company in domestic and the global, markets. The majority of the business's Physical shops lie in United States including above 500 shops in nearly each of the state of United States. The company has likewise an international existence in 8 various countries with its greatest number of shops 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. It indicates that majority of the profits of the company come from the local markets. Additionally, the company is thinking about to expand its stores into 7 more European and Asian nations. A chart revealing the presence of the company in various worldwide markets is given up the Appendix 2.

Targeting


The company targets its clothing brand name to the young, high and good-looking teens and kids that are considered to be cool. This targeting policy is responsible for numerous differences in the company connected to its rivals. The business employs excellent looking males and ladies for its stores and follows a strict look policy to preserve tourist attraction of good-looking people towards its shops and supply a special brand experience.

Positioning


The company has placed its brand name as a high-end brand targeting just a specific market sector. The business with its non-traditional methods of marketing through designs and representatives posters its brand name image as a luxury clothes brand name targeted to the cool and attractive characters in society. Although, this market position brings in different elite individuals towards the brand name however it injures 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 (B): September 1993 Case Help deals with a lot of competition in the market with the existence of different number of rivals in the market. Space is also considered to be a potential rival in regional as well as in global; markets as the business is thinking about to move in the global markets.



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