Porter's 5 Forces analysis of Tonka Corporation Case Solution

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Porter's 5 Forces analysis of Tonka Corporation Case Study Solution

A Porter's 5 Forces analysis of Tonka Corporation Case Help might be carried out to develop numerous strategies utilizing the strengths of the business to avail opportunities, conquer weaknesses and to minimize the hazards. It might also be utilized to evaluate that how certain weaknesses withstand particular chances and increase the threats. The methods prepared using the Porter's 5 Forces analysis of Tonka Corporation Case Solution are offered as follows;
• Utilization of strong global brand name position and funds in expanding towards prospective markets.
• Unique brand name experience might help out the business to better position itself in new markets.
• Resistance in expansion in the possible global markets motivating diversity.
• High prices limits the expansion in different Asian and African countries with low per capita income.
• Strong brand name recognition, non-traditional methods of marketing and the unique brand experience might be utilized to decrease the danger from potential clients.
• Rigorous look policies might caused the customer shift towards Victoria with high social responsibility.
• Limited target markets could resulted in a decrease in the overall market share of the company.
These strategies might help the business 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 Tonka Corporation Case Solution could be carried out to assess the accessibility of financial resources to the company that could be used in growth towards international markets. The monetary position of the business might be examined by using the information given up the case Display 1. The ratios that could be considered in financial efficiency analysis are given in the Table 1 below;

From the above Table 1, it could be seen that the business has a reasonable monetary performance with a ROE of 7.9% and a high sales growth of 18.4%. Although, a 4.3% net revenue margin does not seems to be prospective and the business needs to put efforts in increasing its incomes together with reducing its functional costs to increase its profit margins.

Porter's 5 Forces analysis of Tonka Corporation Case Analysis

Segmentation

Most of the business's Brick and Mortar stores are located in United States including above 500 shops in almost each of the state of United States. The business has likewise a global existence in 8 various countries with its greatest number of shops situated in United Kingdom i.e. 21. The companyhas a total of 54 stores in worldwide markets that is probably the 10% of its shops in the US.

Targeting

The company targets its clothing brand to the young, tall and good-looking teenagers and kids that are considered to be cool. This targeting policy is responsible for different differences in the business associated with its competitors. The company hires good looking males and ladies for its shops and follows a rigorous appearance policy to maintain attraction of good-looking individuals towards its shops and offer a special brand name experience.

Positioning

The business has placed its brand as a high-end brand targeting only a specific market segment. The business with its non-traditional methods of marketing through models and representatives posters its brand name image as a luxury clothing brand name targeted to the cool and good-looking characters in society. This market position brings in various elite people towards the brand however it hurts the company's position in numerous neighborhoods focused at the equality in society.

External Analysis

Competitor Analysis

Porter's 5 Forces analysis of Tonka Corporation Case Analysis faces a great deal of competition in the market with the presence of numerous number of competitors in the market. A chart showing the close competitors in addition to their characteristics and the marketing method is given in. it could be seen that the American Eagle Outfitters is thought about to be the greatest competitors for business with its marketing technique associated to the television shows. Furthermore, Gap is likewise considered to be a prospective competitor in regional as well as in worldwide; markets as the company is thinking about to move in the international markets. Along with it, Tonka Corporation Case Study Solution. with its flexible pricing method and the Victoria's Street with its strong social status position an extreme hazard to the existing market share of the Porter's 5 Forces analysis of Tonka Corporation Case Help.

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