Porter's 5 Forces analysis of Levendary Cafe: The China Challenge Case Help

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Porter's 5 Forces analysis of Levendary Cafe: The China Challenge Case Study Solution

Porter's 5 Forces AnalysisA Porter's 5 Forces analysis of Levendary Cafe: The China Challenge Case Help might be carried out to create numerous strategies using the strengths of the business to get chances, overcome weak points and to decrease the risks. It might likewise be utilized to evaluate that how specific weaknesses resist certain opportunities and increase the risks. The strategies drafted using the Porter's 5 Forces analysis of Levendary Cafe: The China Challenge Case Help are offered as follows;
• Usage of strong international brand name position and funds in expanding towards potential markets.
• Distinct brand name experience could help out the business to much better position itself in brand-new markets.
• Resistance in growth in the possible international markets encouraging variety.
• High prices restricts the growth in various Asian and African countries with low per capita income.
• Strong brand name acknowledgment, non-traditional ways of marketing and the special brand experience might be utilized to decrease the threat from potential clients.
• Rigorous look policies could led to the consumer shift towards Victoria with high social responsibility.
• Limited target markets could caused a decrease in the overall market share of the business.
These strategies might 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 Levendary Cafe: The China Challenge Case Solution could be conducted to evaluate the availability of financial resources to the business that might be made use of in expansion towards international markets. The financial position of the company might be assessed by utilizing the information given in the case Display 1. The ratios that could 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 financial performance with a ROE of 7.9% and a high sales growth of 18.4%. Although, a 4.3% net earnings margin does not appears to be prospective and the business should put efforts in increasing its revenues together with lowering its operational expenditures to increase its earnings margins.

Porter's 5 Forces analysis of Levendary Cafe: The China Challenge Case Help

Segmentation

Most of the business's Brick and Mortar stores are located in US including above 500 stores in almost each of the state of US. The business has also an international presence in 8 different countries with its highest number of shops 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 United States.

Targeting


The business targets its clothing brand name to the young, tall and attractive teenagers and kids that are considered to be cool. This targeting policy is accountable for various distinctions in the company related to its rivals. The company works with great looking males and females for its stores and follows a strict appearance policy to preserve tourist attraction of attractive people towards its stores and offer a special brand name experience.

Positioning


The business has placed its brand as a high-end brand targeting just a specific market sector. The business with its non-traditional methods of marketing through models and agents posters its brand name image as a high-end clothes brand targeted to the cool and attractive characters in society. Although, this market position attracts various elite people towards the brand 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 Levendary Cafe: The China Challenge Case Help faces a lot of competitors in the market with the presence of different number of rivals in the market. Gap is likewise thought about to be a prospective rival in local as well as in worldwide; markets as the business is considering to shift in the global markets.



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