Porter's 5 Forces analysis of Saint-Gobain The Expansion Option In India And Or China Case Analysis

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Porter's 5 Forces analysis of Saint-Gobain The Expansion Option In India And Or China Case Study Solution

A Porter's 5 Forces analysis of Saint-Gobain The Expansion Option In India And Or China Case Solution could be performed to create various techniques using the strengths of the company to avail opportunities, overcome weak points and to lower the risks. It might also be used to evaluate that how certain weaknesses resist specific chances and increase the risks. The techniques prepared utilizing the Porter's 5 Forces analysis of Saint-Gobain The Expansion Option In India And Or China Case Analysis are provided as follows;
• Usage of strong worldwide brand name position and funds in expanding towards prospective markets.
• Special brand name experience might assist the business to much better position itself in new markets.
• Resistance in growth in the potential worldwide markets motivating diversity.
• High rates limits the growth in numerous Asian and African countries with low per capita income.
• Strong brand recognition, non-traditional methods of marketing and the unique brand experience might be utilized to lower the danger from prospective customers.
• Strict look policies might resulted in the consumer shift towards Victoria with high social responsibility.
• Restricted target audience could resulted in a decline in the total 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 Saint-Gobain The Expansion Option In India And Or China Case Analysis might be carried out to examine the availability of financial resources to the company that might be utilized in expansion towards global markets. The financial position of the business might be examined by utilizing the data given in the case Exhibition 1. The ratios that could be considered in financial performance analysis are given up the Table 1 below;

From the above Table 1, it might be seen that the company has a reasonable financial performance 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 prospective and the business needs to put efforts in increasing its profits together with minimizing its operational expenses to increase its profit margins.

Porter's 5 Forces analysis of Saint-Gobain The Expansion Option In India And Or China Case Solution

Segmentation

The division analysis includes the analysis of numerous company segments of the company in domestic and the international, markets. The majority of the company's Brick and Mortar shops are located in United States consisting of above 500 shops in nearly each of the state of United States. However, the company has likewise a worldwide presence in 8 different nations with its greatest variety of shops located in UK i.e. 21. The companyhas a total of 54 shops in global markets that is probably the 10% of its shops in the United States. It implies that bulk of the earnings of the business come from the local markets. The company is considering to expand its stores into 7 more European and Asian countries. A chart revealing the existence of the company in different worldwide markets is given up the Appendix 2.

Targeting

The company targets its clothing brand to the young, high and good-looking teenagers and kids that are considered to be cool. This targeting policy is responsible for various differences in the company related to its rivals. For example, the business employs great looking men and women for its stores and follows a stringent look policy to keep destination of attractive people towards its shops and supply a distinct brand name experience.

Positioning

The company has actually positioned its brand name as a high-end brand targeting just a specific market sector. The business with its non-traditional methods of marketing through models and representatives posters its brand image as a luxury clothing brand targeted to the cool and good-looking personalities in society. Although, this market position brings in numerous elite individuals towards the brand but it harms the company's position in different neighborhoods focused at the equality in society.

External Analysis

Competitor Analysis

Porter's 5 Forces analysis of Saint-Gobain The Expansion Option In India And Or China Case Help faces a lot of competition in the market with the existence of numerous number of rivals in the market. Gap is likewise considered to be a possible competitor in local as well as in international; markets as the business is considering to move in the global markets.

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