Porter's 5 Forces analysis of Lafarge (B): Looking To The Future Case Solution

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Porter's 5 Forces analysis of Lafarge (B): Looking To The Future Case Study Solution

Porter's 5 Forces AnalysisA Porter's 5 Forces analysis of Lafarge (B): Looking To The Future Case Analysis might be performed to develop numerous strategies utilizing the strengths of the company to avail chances, conquer weaknesses and to decrease the hazards. It could likewise be used to evaluate that how particular weaknesses withstand specific chances and increase the risks. The methods prepared utilizing the Porter's 5 Forces analysis of Lafarge (B): Looking To The Future Case Solution are offered as follows;
• Usage of strong international brand name position and financial resources in expanding towards possible markets.
• Special brand experience might help out the business to much better position itself in new markets.
• Resistance in expansion in the prospective international markets motivating diversity.
• High rates restricts the growth in various Asian and African nations with low per capita earnings.
• Strong brand recognition, non-traditional ways of marketing and the unique brand name experience could be made use of to minimize the hazard from prospective consumers.
• Rigorous look policies could resulted in the consumer shift towards Victoria with high social obligation.
• Minimal target markets could caused a decrease in the total market share of the business.
These methods could help 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 Lafarge (B): Looking To The Future Case Solution might be conducted to evaluate the availability of funds to the business that might be made use of in growth towards worldwide markets. The monetary position of the business could be evaluated by utilizing the data given up the case Exhibit 1. The ratios that could be thought about in monetary 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 earnings margin does not seems to be prospective and the company should put efforts in increasing its profits together with decreasing its operational costs to increase its profit margins.

Porter's 5 Forces analysis of Lafarge (B): Looking To The Future Case Analysis

Segmentation

The segmentation analysis consists of the analysis of different company sections of the company in domestic and the international, markets. Most of the business's Physical stores are located in United States consisting of above 500 shops in almost each of the state of US. However, the company has likewise an international presence in 8 different nations with its greatest variety of stores located in UK i.e. 21. The companyhas a total of 54 stores in global markets that is probably the 10% of its shops in the United States. It suggests that bulk of the incomes of the company come from the regional markets. The company is considering to expand its shops into 7 more European and Asian nations. A chart showing the existence of the business in numerous worldwide markets is given up the Appendix 2.

Targeting


The company targets its clothing brand name to the young, tall and good-looking teens and kids that are considered to be cool. This targeting policy is responsible for numerous differences in the company connected to its competitors. The company employs great looking men and females for its stores and follows a stringent appearance policy to preserve attraction of attractive people towards its stores and supply a special brand name experience.

Positioning


The company has positioned its brand as a high-end brand targeting just a specific market segment. The company with its non-traditional methods of marketing through designs and agents posters its brand name image as a luxury clothes brand name targeted to the cool and good-looking characters in society. This market position draws in various elite people towards the brand but it harms the business's position in various neighborhoods focused at the equality in society.

External Analysis

Competitor Analysis


Porter's 5 Forces analysis of Lafarge (B): Looking To The Future Case Help faces a lot of competitors in the market with the existence of different number of competitors in the market. Gap is likewise thought about to be a possible competitor in regional as well as in worldwide; markets as the company is considering to move in the international markets.



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