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

Disclaimer: This is only sample format for the case and not the actual case solution. Place your order on the website to get your own case solution originally solved. Buy Now

Home >> Darden Business School >> The Wm. Wrigley Jr. Company: Capital Structure Valuation And Cost Of Capital >> Porter's 5 Forces analysis

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

A Porter's 5 Forces analysis of The Wm. Wrigley Jr. Company: Capital Structure Valuation And Cost Of Capital Case Help might be performed to create numerous strategies using the strengths of the business to obtain chances, get rid of weaknesses and to lower the threats. It could likewise be used to examine that how certain weak points withstand certain chances and increase the dangers. The techniques drafted utilizing the Porter's 5 Forces analysis of The Wm. Wrigley Jr. Company: Capital Structure Valuation And Cost Of Capital Case Solution are provided as follows;
• Utilization of strong international brand position and funds in expanding towards prospective markets.
• Unique brand name experience could assist the business to much better position itself in new markets.
• Resistance in expansion in the possible worldwide markets motivating variety.
• High costs restricts the growth in various Asian and African nations with low per capita earnings.
• Strong brand name recognition, non-traditional methods of marketing and the distinct brand experience could be used to decrease the threat from prospective consumers.
• Stringent appearance policies could led to the customer shift towards Victoria with high social duty.
• Restricted target audience could caused a decline in the total market share of the company.
These methods could 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 Wm. Wrigley Jr. Company: Capital Structure Valuation And Cost Of Capital Case Solution could be carried out to evaluate the availability of financial resources to the company that might be utilized in expansion towards worldwide markets. The monetary position of the business might be evaluated by using 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 financial performance with a ROE of 7.9% and a high sales development of 18.4%. Although, a 4.3% net profit margin does not appears to be potential and the business should put efforts in increasing its profits along with decreasing its operational expenditures to increase its earnings 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 shops are situated in United States including above 500 shops in practically each of the state of United States. The business has likewise an international presence in 8 different countries with its highest number of stores situated in United Kingdom i.e. 21. The companyhas a total of 54 stores in global markets that is most likely the 10% of its stores in the United States.

Targeting

The company targets its clothing brand name to the young, high and good-looking teens and kids that are thought about to be cool. This targeting policy is accountable for numerous differences in the company connected to its rivals. The business hires good looking males and females for its shops and follows a rigorous look policy to preserve destination of good-looking individuals towards its shops and offer an unique brand name experience.

Positioning

The business has actually positioned its brand as a high-end brand name targeting just a specific market sector. The company with its non-traditional methods of marketing through designs and agents posters its brand image as a luxury clothes brand name targeted to the cool and attractive characters in society. This market position attracts numerous elite people towards the brand but it injures the company's position in numerous neighborhoods 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 great deal of competitors in the market with the existence of various number of rivals in the market. A chart showing the close rivals in addition to their characteristics and the marketing strategy is given in. it could be seen that the American Eagle Outfitters is considered to be the greatest competitors for company with its marketing method related to the television shows. Moreover, Gap is likewise thought about to be a possible rival in regional along with in international; markets as the business is considering to move in the global markets. Along with it, The Wm. Wrigley Jr. Company: Capital Structure Valuation And Cost Of Capital Case Study Solution. with its versatile rates method and the Victoria's Street with its strong social status pose a serious risk 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 Solution.

This is sample work and not applicable to real case study. Please place the order on the website to get your own originally done case solution.