Porter's 5 Forces analysis of Mittal Steel Managing Consolidation Case Analysis

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Porter's 5 Forces analysis of Mittal Steel Managing Consolidation Case Study Analysis

Porter's 5 Forces AnalysisA Porter's 5 Forces analysis of Mittal Steel Managing Consolidation Case Solution might be carried out to create numerous techniques utilizing the strengths of the company to get chances, overcome weak points and to reduce the dangers. It might also be used to assess that how certain weaknesses withstand specific opportunities and increase the dangers. The strategies drafted using the Porter's 5 Forces analysis of Mittal Steel Managing Consolidation Case Analysis are given as follows;
• Utilization of strong international brand position and financial resources in broadening towards possible markets.
• Special brand name experience could assist the company to better position itself in new markets.
• Resistance in growth in the possible worldwide markets encouraging diversity.
• High prices limits the growth in different Asian and African countries with low per capita earnings.
• Strong brand name recognition, non-traditional methods of marketing and the unique brand name experience could be made use of to decrease the threat from prospective consumers.
• Strict look policies might caused the customer shift towards Victoria with high social obligation.
• Limited target audience might led to a decrease in the total market share of the company.
These methods might help the business 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 Mittal Steel Managing Consolidation Case Solution could be carried out to assess the accessibility of funds to the business that might be used in growth towards international markets. The financial position of the business could be evaluated by utilizing the data given up the case Exhibition 1. The ratios that could be considered in monetary performance analysis are given up the Table 1 listed below;

From the above Table 1, it might be seen that the company has a reasonable financial efficiency with a ROE of 7.9% and a high sales growth of 18.4%. Although, a 4.3% net earnings margin does not seems to be possible and the business must put efforts in increasing its revenues together with lowering its operational costs to increase its profit margins.

Porter's 5 Forces analysis of Mittal Steel Managing Consolidation Case Analysis

Segmentation

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

Targeting


The company targets its clothing brand to the young, high and attractive teens and kids that are thought about to be cool. This targeting policy is responsible for various distinctions in the company connected to its competitors. The company works with great looking men and ladies for its stores and follows a stringent look policy to preserve tourist attraction of attractive individuals towards its shops and supply an unique brand experience.

Positioning


The company has actually positioned its brand name as a high-end brand targeting only a specific market segment. The business with its non-traditional methods of marketing through designs and representatives posters its brand name image as a high-end clothes brand targeted to the cool and good-looking characters in society. Although, this market position draws in various elite people towards the brand name 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 Mittal Steel Managing Consolidation Case Analysis faces a lot of competitors in the market with the existence of different number of rivals in the market. Gap is likewise thought about to be a potential competitor in regional as well as in worldwide; markets as the company is considering to move in the international markets.



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