Porter's 5 Forces analysis of Ctrip: Scientifically Managing Travel Services Case Analysis

Home >> Harvard Business School >> Ctrip: Scientifically Managing Travel Services >> Porter's 5 Forces analysis

Porter's 5 Forces analysis of Ctrip: Scientifically Managing Travel Services Case Study Analysis

Porter's 5 Forces AnalysisA Porter's 5 Forces analysis of Ctrip: Scientifically Managing Travel Services Case Analysis could be performed to develop numerous techniques utilizing the strengths of the business to get opportunities, conquer weak points and to decrease the hazards. It could likewise be utilized to evaluate that how particular weaknesses resist particular chances and increase the dangers. The strategies drafted using the Porter's 5 Forces analysis of Ctrip: Scientifically Managing Travel Services Case Analysis are given as follows;
• Usage of strong global brand name position and financial resources in expanding towards possible markets.
• Unique brand experience could assist the business to much better position itself in new markets.
• Resistance in growth in the prospective global markets motivating diversity.
• High prices limits the growth in different Asian and African nations with low per capita earnings.
• Strong brand recognition, non-traditional ways of marketing and the unique brand name experience could be utilized to reduce the threat from potential consumers.
• Rigorous appearance policies might led to the customer shift towards Victoria with high social duty.
• Limited target markets could led to a decrease in the overall market share of the business.
These strategies might assist the business to improvise its market position and be at the leading position in the market.

Financial Analysis


Monetary analysis for Porter's 5 Forces analysis of Ctrip: Scientifically Managing Travel Services Case Analysis might be carried out to examine the accessibility of funds to the business that could be used in expansion towards worldwide markets. The monetary position of the company might be assessed by utilizing the information given in the case Exhibit 1. The ratios that could be thought about in financial performance analysis are given in the Table 1 below;

From the above Table 1, it could be seen that the business has a sensible 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 seems to be potential and the company needs to put efforts in increasing its incomes together with reducing its operational costs to increase its revenue margins.

Porter's 5 Forces analysis of Ctrip: Scientifically Managing Travel Services Case Analysis

Segmentation

The division analysis includes the analysis of different company sectors of the business in domestic and the international, markets. Most of the company's Physical shops are located in US including above 500 shops in practically each of the state of US. The business has also an international existence in 8 various countries with its highest number of stores located in United Kingdom i.e. 21. The companyhas a total of 54 shops in international markets that is probably the 10% of its stores in the US. It implies that bulk of the earnings of the company originated from the regional markets. The company is considering to expand its shops into 7 more European and Asian nations. A chart revealing the presence of the business in different global markets is given up the Appendix 2.

Targeting


The company targets its clothing brand to the young, tall and attractive teenagers and kids that are thought about to be cool. This targeting policy is accountable for different differences in the company related to its competitors. For instance, the business hires excellent looking men and women for its stores and follows a stringent look policy to keep attraction of attractive individuals towards its shops and supply a distinct brand name experience.

Positioning


The business has placed its brand name as a high-end brand name targeting just a particular market segment. The business with its non-traditional methods of marketing through models and representatives posters its brand name image as a luxury clothing brand name targeted to the cool and good-looking characters in society. Although, this market position brings in numerous elite people towards the brand name but it harms the company's position in various communities focused at the equality in society.

External Analysis

Competitor Analysis


Porter's 5 Forces analysis of Ctrip: Scientifically Managing Travel Services Case Analysis deals with a lot of competitors in the market with the existence of numerous variety of competitors in the market. A chart revealing the close rivals together with their characteristics and the marketing strategy is given in. it might be seen that the American Eagle Outfitters is considered to be the greatest competitors for business with its marketing technique related to the television programs. Additionally, Gap is also thought about to be a prospective rival in regional in addition to in global; markets as the business is considering to move in the global markets. In addition to it, Ctrip: Scientifically Managing Travel Services Case Study Solution. with its flexible pricing method and the Victoria's Street with its strong social status posture an extreme threat to the existing market share of the Porter's 5 Forces analysis of Ctrip: Scientifically Managing Travel Services 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.