Porter's 5 Forces analysis of Aditya Birla Group: Redesigning To Become A Fortune 500 Company Case Solution

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Porter's 5 Forces analysis of Aditya Birla Group: Redesigning To Become A Fortune 500 Company Case Study Solution

Porter's 5 Forces AnalysisA Porter's 5 Forces analysis of Aditya Birla Group: Redesigning To Become A Fortune 500 Company Case Analysis could be carried out to design various techniques utilizing the strengths of the company to avail opportunities, get rid of weaknesses and to reduce the dangers. It might likewise be used to evaluate that how particular weaknesses resist particular chances and increase the risks. The methods drafted using the Porter's 5 Forces analysis of Aditya Birla Group: Redesigning To Become A Fortune 500 Company Case Analysis are provided as follows;
• Usage of strong global brand position and financial resources in broadening towards possible markets.
• Special brand experience could assist the business to much better position itself in brand-new markets.
• Resistance in expansion in the potential global markets motivating diversity.
• High prices restricts the expansion in numerous Asian and African countries with low per capita earnings.
• Strong brand recognition, non-traditional methods of marketing and the unique brand experience might be utilized to reduce the hazard from prospective clients.
• Rigorous appearance policies might resulted in the customer shift towards Victoria with high social responsibility.
• Limited target audience might resulted in a decline in the total market share of the business.
These methods might assist 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 Aditya Birla Group: Redesigning To Become A Fortune 500 Company Case Analysis could be conducted to evaluate the schedule of funds to the company that might be utilized in expansion towards worldwide markets. The financial position of the company might be evaluated by using the data given in the case Display 1. The ratios that could be thought about in financial efficiency analysis are given in the Table 1 listed below;

From the above Table 1, it could be seen that the business has an affordable 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 seems to be prospective and the company must put efforts in increasing its profits along with lowering its operational costs to increase its revenue margins.

Porter's 5 Forces analysis of Aditya Birla Group: Redesigning To Become A Fortune 500 Company Case Solution

Segmentation

The segmentation analysis consists of the analysis of various business sectors of the business in domestic and the worldwide, markets. The majority of the company's Physical shops are located in US consisting of above 500 stores in nearly each of the state of US. The business has likewise a worldwide existence in 8 different countries with its highest number of stores located in United Kingdom i.e. 21. The companyhas an overall of 54 stores in international markets that is probably the 10% of its shops in the United States. It suggests that bulk of the revenues of the company come from the regional markets. Additionally, the company is considering to broaden its stores into 7 more European and Asian nations. A chart showing the presence of the business in different worldwide markets is given up the Appendix 2.

Targeting


The business targets its clothing brand to the young, tall and good-looking teenagers and kids that are thought about to be cool. This targeting policy is accountable for different distinctions in the business related to its rivals. The business hires great looking men and women for its shops and follows a stringent appearance policy to keep destination of good-looking individuals towards its shops and provide a distinct brand experience.

Positioning


The company has placed its brand as a high-end brand name targeting only a specific market segment. The business with its non-traditional ways of marketing through models and agents posters its brand name image as a high-end clothes brand targeted to the cool and good-looking personalities in society. This market position brings in numerous elite people towards the brand name however it injures the business's position in numerous communities focused at the equality in society.

External Analysis

Competitor Analysis


Porter's 5 Forces analysis of Aditya Birla Group: Redesigning To Become A Fortune 500 Company Case Analysis faces a lot of competitors in the market with the existence of numerous number of rivals in the market. A chart showing the close competitors in addition to their qualities and the marketing technique is given up. it could be seen that the American Eagle Outfitters is considered to be the greatest competitors for company with its marketing technique associated to the television programs. Space is likewise considered to be a potential rival in local as well as in worldwide; markets as the company is thinking about to shift in the worldwide markets. In addition to it, Aditya Birla Group: Redesigning To Become A Fortune 500 Company Case Study Analysis. with its flexible rates strategy and the Victoria's Street with its strong social status present a serious hazard to the present market share of the Porter's 5 Forces analysis of Aditya Birla Group: Redesigning To Become A Fortune 500 Company Case Analysis.



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