Porter's 5 Forces analysis of Lincoln Electric: Venturing Abroad Case Solution

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Porter's 5 Forces analysis of Lincoln Electric: Venturing Abroad Case Study Analysis

A Porter's 5 Forces analysis of Lincoln Electric: Venturing Abroad Case Solution might be performed to create various methods utilizing the strengths of the business to avail opportunities, overcome weaknesses and to minimize the risks. It could likewise be used to assess that how certain weaknesses resist specific opportunities and increase the risks. The strategies prepared utilizing the Porter's 5 Forces analysis of Lincoln Electric: Venturing Abroad Case Solution are offered as follows;
• Utilization of strong international brand position and funds in broadening towards possible markets.
• Distinct brand name experience might assist the company to better position itself in new markets.
• Resistance in growth in the possible international markets motivating variety.
• High rates limits the expansion in various Asian and African nations with low per capita income.
• Strong brand recognition, non-traditional ways of marketing and the unique brand experience could be used to lower the risk from possible customers.
• Stringent look policies could resulted in the customer shift towards Victoria with high social duty.
• Limited target audience could resulted in a decline in the overall market share of the business.
These methods could help 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 Lincoln Electric: Venturing Abroad Case Help could be performed to examine the schedule of funds to the business that could be used in expansion towards international markets. The financial position of the company might be examined by using the data given up the case Exhibit 1. The ratios that could be considered in financial efficiency analysis are given up the Table 1 below;

From the above Table 1, it might be seen that the company has a sensible monetary efficiency 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 possible and the business should put efforts in increasing its earnings along with minimizing its operational expenses to increase its earnings margins.

Porter's 5 Forces analysis of Lincoln Electric: Venturing Abroad Case Analysis

Segmentation

The segmentation analysis includes the analysis of various service sections of the business in domestic and the international, markets. Most of the company's Traditional stores are located in United States including above 500 stores in nearly each of the state of US. The company has also a global presence in 8 different nations with its highest number of stores situated in United Kingdom i.e. 21. The companyhas a total of 54 shops in global markets that is most likely the 10% of its shops in the US. It suggests that bulk of the earnings of the company originated from the local markets. The company is considering to expand its shops into 7 more European and Asian nations. A chart revealing the existence of the business in various international markets is given up the Appendix 2.

Targeting

The business targets its clothing brand name to the young, tall and good-looking teens and kids that are thought about to be cool. This targeting policy is responsible for various distinctions in the business associated with its competitors. The company hires excellent looking males and women for its stores and follows a rigorous look policy to preserve destination of attractive people towards its shops and supply a special brand experience.

Positioning

The business has placed its brand as a high-end brand targeting only a specific market segment. The business 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 personalities in society. Although, this market position brings in various elite people towards the brand name however it hurts the business's position in various communities focused at the equality in society.

External Analysis

Competitor Analysis

Porter's 5 Forces analysis of Lincoln Electric: Venturing Abroad Case Help faces a lot of competition in the market with the existence of various number of rivals in the market. Space is also thought about to be a prospective rival in regional as well as in global; markets as the company is considering to move in the global markets.

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