Porter's 5 Forces analysis of The Wm Wrigley Jr Company: Capital Structure Valuation And Cost Of Capital Case Analysis

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Porter's 5 Forces analysis of The Wm Wrigley Jr Company: Capital Structure Valuation And Cost Of Capital Case Study Solution

Porter's 5 Forces AnalysisA Porter's 5 Forces analysis of The Wm Wrigley Jr Company: Capital Structure Valuation And Cost Of Capital Case Solution could be carried out to develop different techniques using the strengths of the business to get opportunities, overcome weaknesses and to decrease the dangers. It could also be utilized to examine that how particular weaknesses withstand certain opportunities and increase the threats. The methods drafted utilizing the Porter's 5 Forces analysis of The Wm Wrigley Jr Company: Capital Structure Valuation And Cost Of Capital Case Help are offered as follows;
• Utilization of strong international brand position and funds in expanding towards possible markets.
• Special brand name experience could help out the business to better position itself in brand-new markets.
• Resistance in growth in the potential global markets encouraging diversity.
• High rates limits the expansion in various Asian and African countries with low per capita income.
• Strong brand recognition, non-traditional ways of marketing and the unique brand name experience could be utilized to lower the threat from potential clients.
• Strict look policies might led to the customer shift towards Victoria with high social duty.
• Minimal target audience might resulted in a decrease in the overall market share of the company.
These techniques might assist 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 Wm Wrigley Jr Company: Capital Structure Valuation And Cost Of Capital Case Solution could be conducted to evaluate the accessibility of funds to the company that could be used in expansion towards global markets. The monetary position of the business might be evaluated by utilizing the data given up the case Exhibition 1. The ratios that might be thought about in financial performance analysis are given up the Table 1 below;

From the above Table 1, it might be seen that the business has an affordable financial efficiency with a ROE of 7.9% and a high sales growth of 18.4%. A 4.3% net revenue margin does not appears to be possible and the company must put efforts in increasing its earnings along with lowering its operational costs to increase its revenue margins.

Porter's 5 Forces analysis of The Wm Wrigley Jr Company: Capital Structure Valuation And Cost Of Capital Case Analysis

Segmentation

Most of the company's Brick and Mortar stores are situated in United States consisting of above 500 shops in almost each of the state of United States. The company has likewise a global presence 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 international markets that is most likely the 10% of its stores in the United States.

Targeting


The business targets its clothes brand name to the young, tall and good-looking teenagers and kids that are considered to be cool. This targeting policy is accountable for various distinctions in the company associated with its competitors. For example, the business employs excellent looking men and women for its stores and follows a stringent look policy to preserve attraction of good-looking people towards its stores and offer a distinct brand experience.

Positioning


The business has positioned its brand name as a high-end brand targeting just a specific market segment. The business with its non-traditional ways of marketing through models and representatives posters its brand name image as a luxury clothes brand targeted to the cool and good-looking characters in society. Although, this market position brings in different elite people towards the brand however it hurts the business's position in different communities focused at the equality in society.

External Analysis

Competitor Analysis


Porter's 5 Forces analysis of The Wm Wrigley Jr Company: Capital Structure Valuation And Cost Of Capital Case Solution deals with a great deal of competitors in the market with the presence of numerous variety of competitors in the market. A chart showing the close competitors together with their characteristics and the marketing technique is given up. it could be seen that the American Eagle Outfitters is considered to be the strongest rivals for business with its marketing method associated to the tv programs. Additionally, Gap is likewise considered to be a potential rival in local in addition to in worldwide; markets as the company is considering to shift in the international markets. In addition to it, The Wm Wrigley Jr Company: Capital Structure Valuation And Cost Of Capital Case Study Analysis. with its flexible prices method and the Victoria's Street with its strong social status pose a serious hazard to the present market share of the Porter's 5 Forces analysis of The Wm Wrigley Jr Company: Capital Structure Valuation And Cost Of Capital Case Analysis.



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