Porter's 5 Forces analysis of Molycorp: Financing The Production Of Rare Earth Minerals Case Solution

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Porter's 5 Forces analysis of Molycorp: Financing The Production Of Rare Earth Minerals Case Study Analysis

Porter's 5 Forces AnalysisA Porter's 5 Forces analysis of Molycorp: Financing The Production Of Rare Earth Minerals Case Analysis might be conducted to design various strategies using the strengths of the company to obtain chances, overcome weak points and to lower the hazards. It could likewise be used to assess that how particular weak points resist certain chances and increase the risks. The methods prepared utilizing the Porter's 5 Forces analysis of Molycorp: Financing The Production Of Rare Earth Minerals Case Analysis are offered as follows;
• Usage of strong global brand name position and funds in broadening towards prospective markets.
• Unique brand experience might help out the business to much better position itself in new markets.
• Resistance in growth in the possible worldwide markets motivating variety.
• High costs limits the growth in different Asian and African nations with low per capita earnings.
• Strong brand recognition, non-traditional methods of marketing and the special brand experience might be made use of to reduce the risk from prospective customers.
• Stringent appearance policies could resulted in the consumer shift towards Victoria with high social obligation.
• Restricted target markets might led to a decrease in the total market share of the business.
These methods 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 Molycorp: Financing The Production Of Rare Earth Minerals Case Analysis might be carried out to examine the accessibility of funds to the business that could be made use of in growth towards worldwide markets. The financial position of the company could be evaluated by using the data given up the case Exhibition 1. The ratios that might be considered in financial performance analysis are given in the Table 1 below;

From the above Table 1, it could be seen that the business has an affordable monetary 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 potential and the business needs to put efforts in increasing its earnings in addition to reducing its functional expenses to increase its revenue margins.

Porter's 5 Forces analysis of Molycorp: Financing The Production Of Rare Earth Minerals Case Solution

Segmentation

Many of the business's Brick and Mortar shops are located in US consisting of above 500 shops in practically each of the state of United States. The business has likewise a global existence in 8 various countries with its highest number of shops situated in United Kingdom i.e. 21. The companyhas a total of 54 stores in global markets that is probably the 10% of its shops in the United States.

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 various differences in the company connected to its competitors. For instance, the business works with great looking males and females for its stores and follows a stringent look policy to preserve destination of good-looking people towards its shops and provide a distinct brand name experience.

Positioning


The business has positioned its brand as a high-end brand name targeting only a specific market section. The business with its non-traditional ways of marketing through designs and agents posters its brand image as a luxury clothing brand targeted to the cool and good-looking characters in society. This market position draws in different elite people towards the brand name but it injures the business's position in numerous neighborhoods focused at the equality in society.

External Analysis

Competitor Analysis


Porter's 5 Forces analysis of Molycorp: Financing The Production Of Rare Earth Minerals Case Help faces a great deal of competitors in the market with the presence of different number of competitors in the market. A chart showing the close competitors along with their characteristics and the marketing technique is given up. it might be seen that the American Eagle Outfitters is thought about to be the greatest rivals for business with its marketing strategy related to the television programs. Gap is likewise thought about to be a possible rival in local as well as in international; markets as the company is thinking about to shift in the worldwide markets. In addition to it, Molycorp: Financing The Production Of Rare Earth Minerals Case Study Solution. with its versatile pricing strategy and the Victoria's Street with its strong social status position a serious hazard to the existing market share of the Porter's 5 Forces analysis of Molycorp: Financing The Production Of Rare Earth Minerals Case Analysis.



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