Porter's 5 Forces analysis of The Body Shop International Plc 2001: An Introduction To Financial Modeling Case Help

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Porter's 5 Forces analysis of The Body Shop International Plc 2001: An Introduction To Financial Modeling Case Study Solution

A Porter's 5 Forces analysis of The Body Shop International Plc 2001: An Introduction To Financial Modeling Case Solution might be conducted to develop different strategies using the strengths of the business to avail chances, get rid of weak points and to minimize the dangers. It could likewise be utilized to evaluate that how particular weaknesses resist certain opportunities and increase the threats. The methods drafted utilizing the Porter's 5 Forces analysis of The Body Shop International Plc 2001: An Introduction To Financial Modeling Case Analysis are offered as follows;
• Utilization of strong global brand position and financial resources in broadening towards prospective markets.
• Distinct brand name experience might assist the company to much better position itself in brand-new markets.
• Resistance in growth in the prospective international markets encouraging diversity.
• High costs restricts the growth in numerous Asian and African nations with low per capita income.
• Strong brand name recognition, non-traditional methods of marketing and the unique brand name experience might be used to minimize the threat from potential clients.
• Rigorous appearance policies could led to the customer shift towards Victoria with high social obligation.
• Limited target audience might caused a decrease in the overall market share of the company.
These strategies 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 The Body Shop International Plc 2001: An Introduction To Financial Modeling Case Solution might be performed to examine the accessibility of financial resources to the business that could be made use of in growth towards international markets. The monetary position of the company might be assessed by utilizing the information given in the case Display 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 financial efficiency with a ROE of 7.9% and a high sales development of 18.4%. A 4.3% net revenue margin does not appears to be possible and the business needs to put efforts in increasing its incomes along with decreasing its operational expenses to increase its profit margins.

Porter's 5 Forces analysis of The Body Shop International Plc 2001: An Introduction To Financial Modeling Case Solution

Segmentation

Many of the company's Brick and Mortar stores are located in US including above 500 shops in nearly each of the state of United States. The business has likewise an international existence in 8 various countries with its highest number of shops situated in United Kingdom i.e. 21. The companyhas a total of 54 shops in global markets that is most likely the 10% of its stores in the US.

Targeting

The business targets its clothes brand name to the young, high and attractive teens and kids that are thought about to be cool. This targeting policy is responsible for numerous distinctions in the company associated with its rivals. For example, the company employs excellent looking males and females for its stores and follows a strict appearance policy to preserve tourist attraction of attractive individuals towards its shops and provide an unique brand experience.

Positioning

The business has actually positioned its brand as a high-end brand targeting only a particular market section. The business with its non-traditional ways of marketing through models and agents posters its brand image as a high-end clothes brand name targeted to the cool and good-looking characters in society. Although, this market position brings in numerous elite individuals towards the brand name however it harms the company's position in different communities focused at the equality in society.

External Analysis

Competitor Analysis

Porter's 5 Forces analysis of The Body Shop International Plc 2001: An Introduction To Financial Modeling Case Analysis deals with a lot of competition in the market with the existence of different number of rivals in the market. Gap is likewise considered to be a prospective rival in local as well as in worldwide; markets as the company is considering to move in the international markets.

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