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

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

A Porter's 5 Forces analysis of The Wm. Wrigley Jr. Company Capital Structure Valuation And Cost Of Capital Case Help might be carried out to design numerous strategies using the strengths of the business to obtain opportunities, conquer weak points and to lower the dangers. It might likewise be utilized to evaluate that how certain weak points resist specific opportunities and increase the dangers. The strategies prepared using 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 name position and financial resources in broadening towards possible markets.
• Unique brand experience might assist the company to much better position itself in brand-new markets.
• Resistance in expansion in the potential global markets motivating variety.
• High rates restricts the expansion in numerous Asian and African countries with low per capita earnings.
• Strong brand name acknowledgment, non-traditional methods of marketing and the distinct brand experience could be used to reduce the threat from potential consumers.
• Stringent look policies could caused the customer shift towards Victoria with high social obligation.
• Limited target markets could resulted in a decline in the overall market share of the company.
These techniques could 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 The Wm. Wrigley Jr. Company Capital Structure Valuation And Cost Of Capital Case Solution could be performed to assess the availability of funds to the business that might be utilized in growth towards global markets. The financial position of the business could be examined by utilizing the information given in the case Exhibition 1. The ratios that could be thought about in financial performance analysis are given up the Table 1 below;

From the above Table 1, it could be seen that the company has a reasonable monetary performance with a ROE of 7.9% and a high sales development of 18.4%. A 4.3% net earnings margin does not appears to be prospective and the company must put efforts in increasing its profits along with minimizing its functional expenditures to increase its profit margins.

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

Segmentation

Many of the business's Brick and Mortar shops are situated in United States including above 500 stores in almost each of the state of US. The company has also a worldwide presence in 8 different nations with its greatest number of stores located in United Kingdom i.e. 21. The companyhas a total of 54 shops in worldwide markets that is probably the 10% of its shops in the US.

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 distinctions in the business connected to its competitors. The company hires good looking males and women for its shops and follows a strict appearance policy to preserve attraction of attractive individuals towards its shops and offer a distinct brand experience.

Positioning

The company has positioned its brand name as a high-end brand targeting only a specific market sector. The business with its non-traditional methods of marketing through designs and representatives posters its brand image as a high-end clothing brand name targeted to the cool and good-looking personalities in society. Although, this market position attracts numerous elite people towards the brand however it harms the business's position in various 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 Help faces a lot of competitors in the market with the existence of various number of competitors in the market. Gap is also thought about to be a possible rival in regional as well as in global; markets as the company is thinking about to move in the international markets.

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