Porter's 5 Forces analysis of Kent Chemical: Organizing For International Growth Case Analysis
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Porter's 5 Forces analysis of Kent Chemical: Organizing For International Growth Case Study Analysis
A Porter's 5 Forces analysis of Kent Chemical: Organizing For International Growth Case Solution could be carried out to develop various techniques using the strengths of the company to avail chances, get rid of weak points and to decrease the risks. It might likewise be used to examine that how certain weak points resist certain opportunities and increase the threats. The methods prepared using the Porter's 5 Forces analysis of Kent Chemical: Organizing For International Growth Case Solution are provided as follows;
• Usage of strong worldwide brand name position and financial resources in broadening towards potential markets.
• Unique brand name experience could help out the business to much better position itself in new markets.
• Resistance in expansion in the prospective worldwide markets motivating diversity.
• High prices limits the expansion in different Asian and African nations with low per capita income.
• Strong brand recognition, non-traditional methods of marketing and the unique brand experience could be made use of to lower the hazard from potential consumers.
• Stringent look policies might caused the customer shift towards Victoria with high social duty.
• Restricted target audience could caused a decrease in the total market share of the business.
These techniques could help 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 Kent Chemical: Organizing For International Growth Case Solution could be conducted to assess the schedule of funds to the business that could be utilized in expansion towards international markets. The monetary position of the business might be evaluated by using the data given in the case Display 1. The ratios that might be thought about in financial efficiency analysis are given up the Table 1 listed below;
From the above Table 1, it might be seen that the business has a sensible financial efficiency with a ROE of 7.9% and a high sales growth of 18.4%. A 4.3% net earnings margin does not appears to be possible and the company needs to put efforts in increasing its profits along with minimizing its functional expenditures to increase its profit margins.
Porter's 5 Forces analysis of Kent Chemical: Organizing For International Growth Case Help
Segmentation
The segmentation analysis includes the analysis of various organisation sectors of the company in domestic and the global, markets. The majority of the company's Traditional stores are located in US consisting of above 500 shops in almost each of the state of United States. The business has also an international existence in 8 different nations 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 shops in the US. It implies that bulk of the incomes of the company originated from the regional markets. The business is thinking about to expand its stores into 7 more European and Asian countries. A chart revealing the presence of the company in various global markets is given up the Appendix 2.
Targeting
The business targets its clothes brand name to the young, high and good-looking teenagers and kids that are thought about to be cool. This targeting policy is responsible for various differences in the business related to its rivals. The company works with excellent looking men and females for its stores and follows a rigorous look policy to keep destination of attractive people towards its stores and offer a distinct brand experience.
Positioning
The business has actually positioned its brand as a high-end brand name targeting only a particular market sector. The company with its non-traditional methods of marketing through models and representatives posters its brand image as a luxury clothes brand targeted to the cool and good-looking characters in society. This market position brings in different elite individuals towards the brand name but it hurts the company's position in numerous communities focused at the equality in society.
External Analysis
Competitor Analysis
Porter's 5 Forces analysis of Kent Chemical: Organizing For International Growth Case Analysis faces a lot of competition in the market with the existence of various number of rivals in the market. Gap is likewise thought about to be a prospective rival in regional as well as in international; markets as the business is thinking about to shift in the international markets.
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