Porter's 5 Forces analysis of The Battle For Value: Federal Express Corporation Vs United Parcel Service Of America Inc Case Analysis

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Porter's 5 Forces analysis of The Battle For Value: Federal Express Corporation Vs United Parcel Service Of America Inc Case Study Solution

Porter's 5 Forces AnalysisA Porter's 5 Forces analysis of The Battle For Value: Federal Express Corporation Vs United Parcel Service Of America Inc Case Solution might be carried out to create various methods utilizing the strengths of the company to obtain opportunities, get rid of weak points and to decrease the hazards. It could also be utilized to evaluate that how particular weak points withstand certain chances and increase the hazards. The strategies drafted using the Porter's 5 Forces analysis of The Battle For Value: Federal Express Corporation Vs United Parcel Service Of America Inc Case Analysis are offered as follows;
• Usage of strong international brand name position and funds in expanding towards possible markets.
• Unique brand experience might assist the company to much better position itself in new markets.
• Resistance in expansion in the prospective global markets encouraging variety.
• High rates restricts the growth in different Asian and African countries with low per capita earnings.
• Strong brand acknowledgment, non-traditional ways of marketing and the unique brand name experience might be made use of to decrease the threat from prospective clients.
• Rigorous appearance policies might resulted in the consumer shift towards Victoria with high social obligation.
• Limited target markets could led to a decline in the total market share of the business.
These techniques 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 The Battle For Value: Federal Express Corporation Vs United Parcel Service Of America Inc Case Help could be conducted to assess the accessibility of financial resources to the business that could be used in expansion towards international markets. The monetary 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 up the Table 1 listed below;

From the above Table 1, it might be seen that the company has a reasonable financial efficiency with a ROE of 7.9% and a high sales growth of 18.4%. A 4.3% net profit margin does not appears to be prospective and the company needs to put efforts in increasing its earnings along with decreasing its functional costs to increase its profit margins.

Porter's 5 Forces analysis of The Battle For Value: Federal Express Corporation Vs United Parcel Service Of America Inc Case Analysis

Segmentation

The segmentation analysis includes the analysis of numerous company sectors of the company in domestic and the worldwide, markets. The majority of the business's Traditional shops are located in United States including above 500 stores in almost each of the state of United States. The company has also an international presence in 8 various nations with its highest number of shops situated in United Kingdom i.e. 21. The companyhas a total of 54 shops in worldwide markets that is probably the 10% of its stores in the US. It implies that majority of the profits of the company originated from the regional markets. Additionally, the business is considering to expand its stores into 7 more European and Asian nations. A chart revealing the presence of the business in various international markets is given in the Appendix 2.

Targeting


The company targets its clothes brand to the young, tall and attractive teens and kids that are thought about to be cool. This targeting policy is accountable for various differences in the company related to its rivals. For instance, the company hires excellent looking men and women for its shops and follows a rigorous look policy to preserve attraction of attractive people towards its stores and offer an unique brand name experience.

Positioning


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

External Analysis

Competitor Analysis


Porter's 5 Forces analysis of The Battle For Value: Federal Express Corporation Vs United Parcel Service Of America Inc Case Analysis faces a lot of competitors in the market with the existence of numerous number of rivals in the market. Space is also considered to be a possible rival in local as well as in global; markets as the business is considering to move in the international markets.



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