Porter's 5 Forces analysis of Komatsu Ltd Case Solution

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Porter's 5 Forces analysis of Komatsu Ltd Case Study Analysis

A Porter's 5 Forces analysis of Komatsu Ltd Case Solution could be carried out to develop different methods using the strengths of the company to obtain chances, conquer weak points and to decrease the hazards. It could also be utilized to assess that how specific weak points resist certain chances and increase the threats. The strategies prepared using the Porter's 5 Forces analysis of Komatsu Ltd Case Solution are offered as follows;
• Usage of strong worldwide brand name position and funds in broadening towards possible markets.
• Special brand experience could help out the business to better position itself in brand-new markets.
• Resistance in expansion in the potential worldwide markets encouraging variety.
• High prices restricts the growth in numerous Asian and African nations with low per capita income.
• Strong brand name acknowledgment, non-traditional methods of marketing and the unique brand experience could be made use of to lower the threat from prospective clients.
• Stringent look policies might led to the consumer shift towards Victoria with high social obligation.
• Limited target audience might resulted in a decrease in the overall market share of the business.
These strategies could assist 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 Komatsu Ltd Case Analysis could be conducted to examine the schedule of financial resources to the company that might be made use of in growth towards worldwide markets. The financial position of the business could be evaluated by utilizing the information given up the case Exhibition 1. The ratios that might be considered in financial efficiency analysis are given in the Table 1 below;

From the above Table 1, it could be seen that the company has a reasonable monetary performance with a ROE of 7.9% and a high sales growth of 18.4%. A 4.3% net profit margin does not seems to be potential and the company needs to put efforts in increasing its earnings along with lowering its functional costs to increase its revenue margins.

Porter's 5 Forces analysis of Komatsu Ltd Case Analysis

Segmentation

Most of the company's Brick and Mortar shops are situated in United States including above 500 shops in nearly each of the state of United States. The business has also a global existence in 8 various countries with its highest number of shops situated in United Kingdom i.e. 21. The companyhas an overall of 54 shops in worldwide markets that is probably the 10% of its shops in the US.

Targeting

The business targets its clothes brand to the young, tall and attractive teens and kids that are considered to be cool. This targeting policy is accountable for various differences in the company associated with its competitors. For instance, the company hires great looking men and women for its stores and follows a stringent appearance policy to preserve destination of good-looking people towards its stores and provide a distinct brand name experience.

Positioning

The business has placed its brand as a high-end brand targeting only a specific market section. The company with its non-traditional ways of marketing through models and representatives posters its brand name image as a high-end clothes brand name targeted to the cool and good-looking personalities in society. Although, this market position attracts various elite individuals towards the brand name but it injures the company's position in numerous communities focused at the equality in society.

External Analysis

Competitor Analysis

Porter's 5 Forces analysis of Komatsu Ltd Case Help faces a lot of competition in the market with the presence of numerous number of rivals in the market. Gap is also thought about to be a prospective rival in regional as well as in global; markets as the company is thinking about to move in the international markets.

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