Porter's 5 Forces analysis of Loreal And The Body Shop Acquisition Synergies Case Help

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Porter's 5 Forces analysis of Loreal And The Body Shop Acquisition Synergies Case Study Solution

A Porter's 5 Forces analysis of Loreal And The Body Shop Acquisition Synergies Case Analysis might be carried out to create numerous methods utilizing the strengths of the business to obtain chances, get rid of weak points and to minimize the risks. It could also be used to assess that how specific weak points withstand particular chances and increase the dangers. The techniques prepared utilizing the Porter's 5 Forces analysis of Loreal And The Body Shop Acquisition Synergies Case Solution are offered as follows;
• Utilization of strong worldwide brand name position and funds in expanding towards possible markets.
• Special brand name experience could help out the company to much better position itself in brand-new markets.
• Resistance in growth in the possible worldwide markets motivating diversity.
• High costs restricts the growth in numerous Asian and African nations with low per capita earnings.
• Strong brand recognition, non-traditional methods of marketing and the special brand experience could be used to reduce the threat from possible clients.
• Strict look policies might resulted in the consumer shift towards Victoria with high social duty.
• Restricted target markets could led to a decline in the total market share of the company.
These techniques could help the company 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 Loreal And The Body Shop Acquisition Synergies Case Help could be performed to assess the availability of financial resources to the company that could be used in expansion towards global markets. The monetary position of the company could be assessed by using the information given up the case Exhibition 1. The ratios that might be considered in financial efficiency analysis are given in the Table 1 below;

From the above Table 1, it might be seen that the company has an affordable 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 appears to be potential and the company needs to put efforts in increasing its incomes together with lowering its functional expenditures to increase its profit margins.

Porter's 5 Forces analysis of Loreal And The Body Shop Acquisition Synergies Case Analysis

Segmentation

Most of the business's Brick and Mortar stores are situated in US including above 500 shops in nearly each of the state of US. The business has also an international existence in 8 various nations with its highest number of stores located in United Kingdom i.e. 21. The companyhas an overall of 54 shops in worldwide markets that is probably the 10% of its stores in the United States.

Targeting

The business 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 responsible for various differences in the company connected to its competitors. The company hires good looking guys and females for its shops and follows a rigorous look policy to maintain tourist attraction of attractive individuals towards its shops and supply a special brand name experience.

Positioning

The company has placed its brand name as a high-end brand targeting just a particular market sector. The business with its non-traditional methods of marketing through models and agents posters its brand name image as a high-end clothing brand targeted to the cool and attractive characters in society. This market position draws in numerous elite people towards the brand name but it injures the business's position in different neighborhoods focused at the equality in society.

External Analysis

Competitor Analysis

Porter's 5 Forces analysis of Loreal And The Body Shop Acquisition Synergies Case Help faces a lot of competitors in the market with the existence of various number of competitors in the market. Space is also thought about to be a potential competitor in regional as well as in global; markets as the company is thinking about to move in the global markets.

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