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

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

Porter's 5 Forces AnalysisA Porter's 5 Forces analysis of Renault: The Challenge Of Restructuring Case Help could be carried out to develop numerous techniques using the strengths of the business to get chances, overcome weak points and to reduce the risks. It could also be utilized to assess that how specific weaknesses withstand certain opportunities and increase the threats. The techniques prepared using the Porter's 5 Forces analysis of Renault: The Challenge Of Restructuring Case Solution are provided as follows;
• Utilization of strong international brand name position and financial resources in broadening towards potential markets.
• Special brand name experience could assist the company to much better position itself in brand-new markets.
• Resistance in growth in the prospective global markets encouraging diversity.
• High costs limits the growth in various Asian and African countries with low per capita income.
• Strong brand name acknowledgment, non-traditional methods of marketing and the unique brand experience could be used to minimize the danger from prospective clients.
• Rigorous look policies could caused the customer shift towards Victoria with high social duty.
• Minimal target markets could resulted in a decrease in the total market share of the company.
These techniques 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 Renault: The Challenge Of Restructuring Case Help might be conducted to assess the schedule of financial resources to the business that could be made use of in expansion towards global markets. The financial position of the company could be assessed by utilizing the data given up the case Display 1. The ratios that could be considered in financial efficiency analysis are given up the Table 1 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 growth of 18.4%. Although, a 4.3% net revenue margin does not appears to be potential and the business should put efforts in increasing its revenues together with lowering its functional expenditures to increase its profit margins.

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

Segmentation

The segmentation analysis consists of the analysis of different company segments of the business in domestic and the international, markets. Most of the company's Brick and Mortar stores are located in United States including above 500 shops in nearly each of the state of US. The company has also a global presence in 8 different nations with its highest number of stores located in United Kingdom i.e. 21. The companyhas an overall of 54 stores in worldwide markets that is most likely the 10% of its shops in the US. It implies that bulk of the incomes of the company originated from the local markets. Moreover, the company is considering to expand its shops into 7 more European and Asian countries. A chart showing the existence of the business in numerous global markets is given in the Appendix 2.

Targeting


The company targets its clothes brand name to the young, tall and attractive teenagers and kids that are thought about to be cool. This targeting policy is responsible for numerous differences in the company associated with its competitors. For instance, the company hires excellent looking men and women for its shops and follows a stringent look policy to keep destination of attractive people towards its stores and supply an unique brand experience.

Positioning


The company has actually positioned its brand name as a high-end brand targeting only a particular market sector. The business with its non-traditional ways of marketing through models and representatives posters its brand name image as a high-end clothing brand targeted to the cool and attractive personalities in society. Although, this market position draws in various elite people towards the brand name however it harms the business's position in numerous communities focused at the equality in society.

External Analysis

Competitor Analysis


Porter's 5 Forces analysis of Renault: The Challenge Of Restructuring Case Help faces a lot of competitors in the market with the existence of various number of competitors in the market. Gap is also 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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