Porter's 5 Forces analysis of Applied Research Technologies Inc: Global Innovations Challenges Case Analysis

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Porter's 5 Forces analysis of Applied Research Technologies Inc: Global Innovations Challenges Case Study Analysis

A Porter's 5 Forces analysis of Applied Research Technologies Inc: Global Innovations Challenges Case Solution might be carried out to create numerous techniques utilizing the strengths of the company to avail chances, overcome weaknesses and to minimize the risks. It could also be used to assess that how particular weak points withstand certain chances and increase the risks. The techniques drafted using the Porter's 5 Forces analysis of Applied Research Technologies Inc: Global Innovations Challenges Case Analysis are offered as follows;
• Usage of strong worldwide brand name position and funds in broadening towards prospective markets.
• Unique brand name experience could help out the business to better position itself in new markets.
• Resistance in growth in the prospective worldwide markets encouraging diversity.
• High prices restricts the expansion in different Asian and African nations with low per capita income.
• Strong brand name acknowledgment, non-traditional methods of marketing and the special brand experience might be utilized to minimize the threat from prospective consumers.
• Rigorous look policies could led to the consumer shift towards Victoria with high social obligation.
• Limited target audience could resulted in a decrease in the total market share of the business.
These methods could assist the company 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 Applied Research Technologies Inc: Global Innovations Challenges Case Analysis could be conducted to evaluate the schedule of financial resources to the business that could be utilized in growth towards global markets. The monetary position of the business might be examined by using the data given up the case Exhibit 1. The ratios that might 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 performance with a ROE of 7.9% and a high sales development of 18.4%. A 4.3% net revenue margin does not seems to be prospective and the company must put efforts in increasing its profits along with decreasing its functional costs to increase its profit margins.

Porter's 5 Forces analysis of Applied Research Technologies Inc: Global Innovations Challenges Case Solution

Segmentation

The segmentation analysis includes the analysis of various organisation sectors of the company in domestic and the worldwide, markets. The majority of the company's Brick and Mortar shops are located in United States consisting of above 500 shops in practically each of the state of US. The business has also a worldwide existence in 8 various countries with its highest number of shops located in United Kingdom i.e. 21. The companyhas a total of 54 shops in global markets that is probably the 10% of its stores in the US. It suggests that bulk of the earnings of the company come from the local markets. Moreover, the company is thinking about to expand its shops into 7 more European and Asian nations. A chart showing the existence of the business in numerous worldwide markets is given in the Appendix 2.

Targeting

The business targets its clothing brand to the young, high and attractive teens and kids that are thought about to be cool. This targeting policy is accountable for different distinctions in the company related to its rivals. The company works with great looking males and women for its shops and follows a strict look policy to keep attraction of attractive people towards its stores and offer a distinct brand name experience.

Positioning

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

External Analysis

Competitor Analysis

Porter's 5 Forces analysis of Applied Research Technologies Inc: Global Innovations Challenges Case Analysis deals with a lot of competitors in the market with the presence of different number of rivals in the market. Space is also thought about to be a prospective competitor in regional as well as in international; markets as the company is considering to move in the international markets.

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