Porter's 5 Forces analysis of Renault The Challenge Of Restructuring Case Solution

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Porter's 5 Forces analysis of Renault The Challenge Of Restructuring Case Study Help

A Porter's 5 Forces analysis of Renault The Challenge Of Restructuring Case Solution might be performed to create various methods utilizing the strengths of the company to get chances, get rid of weak points and to decrease the threats. It could also be used to evaluate that how specific weak points withstand certain opportunities and increase the threats. The strategies drafted using the Porter's 5 Forces analysis of Renault The Challenge Of Restructuring Case Analysis are provided as follows;
• Utilization of strong global brand position and financial resources in expanding towards potential markets.
• Special brand name experience might assist the company to much better position itself in brand-new markets.
• Resistance in expansion in the potential global markets motivating diversity.
• High rates limits the expansion in numerous Asian and African countries with low per capita earnings.
• Strong brand name acknowledgment, non-traditional ways of marketing and the distinct brand name experience could be made use of to reduce the danger from possible consumers.
• Strict look policies could led to the customer shift towards Victoria with high social obligation.
• Restricted target markets might caused a decrease in the overall 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 Renault The Challenge Of Restructuring Case Solution could be performed to assess the accessibility of financial resources to the company that could be used in expansion towards international markets. The monetary position of the company could be evaluated by using the information given up the case Exhibit 1. The ratios that could be considered in financial performance analysis are given up the Table 1 listed below;

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

Porter's 5 Forces analysis of Renault The Challenge Of Restructuring Case Analysis

Segmentation

The division analysis consists of the analysis of various company segments of the company in domestic and the international, markets. Most of the company's Brick and Mortar stores are located in US including above 500 shops in practically each of the state of United States. However, the business has also a global existence in 8 various countries with its greatest variety of stores situated in United Kingdom i.e. 21. The companyhas an overall of 54 stores in international markets that is probably the 10% of its shops in the US. It implies that majority of the incomes of the business come from the regional markets. The business is considering to broaden its shops into 7 more European and Asian countries. A chart showing the existence of the company in different international markets is given in the Appendix 2.

Targeting

The company targets its clothing brand to the young, tall and attractive teens and kids that are considered to be cool. This targeting policy is responsible for various differences in the company connected to its rivals. The business works with excellent looking men and ladies for its stores and follows a rigorous look policy to keep tourist attraction of good-looking individuals towards its shops and offer an unique brand experience.

Positioning

The business has placed its brand name as a high-end brand name targeting just a specific market section. The company with its non-traditional methods of marketing through designs and agents posters its brand image as a luxury clothes brand name targeted to the cool and attractive personalities in society. This market position brings in various elite individuals 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 Renault The Challenge Of Restructuring Case Solution faces a lot of competition in the market with the presence of numerous number of rivals in the market. Gap is also considered to be a possible competitor in local as well as in global; markets as the business is considering to shift in the international markets.

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