Porter's 5 Forces analysis of Lafarge: From A French Cement Company To A Global Leader Case Solution

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Porter's 5 Forces analysis of Lafarge: From A French Cement Company To A Global Leader Case Study Analysis

A Porter's 5 Forces analysis of Lafarge: From A French Cement Company To A Global Leader Case Solution might be carried out to design various methods using the strengths of the company to avail opportunities, get rid of weaknesses and to lower the dangers. It could likewise be utilized to examine that how specific weak points resist specific opportunities and increase the risks. The techniques prepared utilizing the Porter's 5 Forces analysis of Lafarge: From A French Cement Company To A Global Leader Case Solution are given as follows;
• Utilization of strong worldwide brand position and financial resources in broadening towards possible markets.
• Unique brand name experience could assist the business to much better position itself in brand-new markets.
• Resistance in growth in the possible international markets encouraging variety.
• High costs limits the growth in numerous Asian and African countries with low per capita income.
• Strong brand name acknowledgment, non-traditional methods of marketing and the special brand experience might be made use of to lower the danger from prospective consumers.
• Strict appearance policies could resulted in the consumer shift towards Victoria with high social duty.
• Restricted target audience could resulted in a decrease in the total market share of the business.
These techniques could 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 Lafarge: From A French Cement Company To A Global Leader Case Help could be performed to assess the availability of funds to the business that might be made use of in expansion towards global markets. The monetary position of the company could be assessed by using the data given up the case Exhibit 1. The ratios that might be considered 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 a reasonable financial efficiency with a ROE of 7.9% and a high sales development of 18.4%. A 4.3% net revenue margin does not seems to be possible and the business needs to put efforts in increasing its incomes along with lowering its functional costs to increase its earnings margins.

Porter's 5 Forces analysis of Lafarge: From A French Cement Company To A Global Leader Case Help

Segmentation

The division analysis includes the analysis of different business sectors of the company in domestic and the global, markets. The majority of the company's Brick and Mortar stores lie in United States consisting of above 500 stores in nearly each of the state of US. The business has likewise a worldwide presence in 8 different countries with its greatest number of shops situated in United Kingdom i.e. 21. The companyhas a total of 54 stores in international markets that is most likely the 10% of its shops in the US. It suggests that bulk of the earnings of the business originated from the regional markets. The company is thinking about to expand its shops into 7 more European and Asian nations. A chart revealing the presence of the business in different global markets is given up the Appendix 2.

Targeting

The company targets its clothing brand name to the young, tall and attractive teenagers and kids that are considered to be cool. This targeting policy is accountable for various differences in the company related to its rivals. The company works with excellent looking males and ladies for its stores and follows a stringent appearance policy to preserve attraction of attractive people towards its shops and offer an unique brand experience.

Positioning

The business has positioned its brand as a high-end brand name targeting just a particular market sector. The business with its non-traditional methods of marketing through designs and representatives posters its brand image as a luxury clothing brand name targeted to the cool and good-looking characters in society. This market position attracts numerous elite people towards the brand name but it hurts the business's position in various neighborhoods focused at the equality in society.

External Analysis

Competitor Analysis

Porter's 5 Forces analysis of Lafarge: From A French Cement Company To A Global Leader Case Analysis deals with a lot of competitors in the market with the existence of numerous number of rivals in the market. Gap is also considered to be a possible rival in local as well as in global; markets as the company is thinking about to move in the worldwide markets.

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