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

Home >> Essec Business School >> Mittal Steel: Managing Consolidation >> Porter's 5 Forces analysis

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

Porter's 5 Forces AnalysisA Porter's 5 Forces analysis of Mittal Steel: Managing Consolidation Case Analysis could be performed to create various methods utilizing the strengths of the company to obtain chances, overcome weaknesses and to lower the dangers. It could likewise be used to evaluate that how particular weaknesses resist particular chances and increase the dangers. The methods drafted using the Porter's 5 Forces analysis of Mittal Steel: Managing Consolidation Case Solution are given as follows;
• Usage of strong international brand position and funds in broadening towards possible markets.
• Distinct brand name experience might assist the business to much better position itself in new markets.
• Resistance in expansion in the prospective worldwide markets motivating variety.
• High prices restricts the expansion in numerous Asian and African nations with low per capita earnings.
• Strong brand name recognition, non-traditional methods of marketing and the distinct brand experience might be made use of to minimize the hazard from prospective customers.
• Stringent look policies could led to the consumer shift towards Victoria with high social obligation.
• Restricted target markets might caused a decline in the total market share of the company.
These techniques might assist 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 Mittal Steel: Managing Consolidation Case Analysis might be conducted to examine the schedule of funds to the business that might be made use of in expansion towards global markets. The financial position of the business could be examined by using the information given up the case Display 1. The ratios that could be considered in monetary efficiency analysis are given in the Table 1 below;

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

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

Segmentation

The segmentation analysis consists of the analysis of various business segments of the business in domestic and the global, markets. The majority of the business's Traditional stores lie in US including above 500 stores in practically each of the state of US. Nevertheless, the company has also a global presence in 8 different nations with its greatest number of stores located in UK i.e. 21. The companyhas a total of 54 shops in worldwide markets that is most likely the 10% of its stores in the US. It indicates that bulk of the profits of the company originated from the regional markets. The company is considering to expand its shops into 7 more European and Asian countries. A chart showing the existence of the business in various global markets is given up the Appendix 2.

Targeting


The company targets its clothes brand name to the young, tall and attractive teenagers and kids that are considered to be cool. This targeting policy is responsible for different differences in the business related to its rivals. For instance, the company works with excellent looking men and women for its shops and follows a rigorous look policy to keep destination of good-looking individuals towards its stores and supply a distinct brand experience.

Positioning


The business has actually placed its brand as a high-end brand name targeting just a particular market segment. The company with its non-traditional ways of marketing through designs and agents posters its brand image as a high-end clothing brand name targeted to the cool and attractive personalities in society. Although, this market position brings in numerous elite people towards the brand but 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 Solution faces a lot of competitors in the market with the existence of different variety of competitors in the market. A chart revealing the close rivals in addition to their characteristics and the marketing technique is given in. it might be seen that the American Eagle Outfitters is thought about to be the greatest competitors for company with its marketing method related to the television programs. Additionally, Space is also considered to be a possible rival in local along with in global; markets as the business is considering to shift in the international markets. In addition to it, Mittal Steel: Managing Consolidation Case Study Help. with its versatile rates strategy and the Victoria's Street with its strong social status pose a serious threat to the present market share of the Porter's 5 Forces analysis of Mittal Steel: Managing Consolidation Case Analysis.



This is sample work and not applicable to real case study. Please place the order on the website to get your own originally done case solution.