Porter's 5 Forces analysis of Air Deccan: The First Low Cost Airline In India Case Help

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Porter's 5 Forces analysis of Air Deccan: The First Low Cost Airline In India Case Study Solution

Porter's 5 Forces AnalysisA Porter's 5 Forces analysis of Air Deccan: The First Low Cost Airline In India Case Analysis could be carried out to develop various strategies utilizing the strengths of the company to obtain chances, conquer weak points and to lower the threats. It could also be used to assess that how certain weak points resist certain opportunities and increase the threats. The techniques prepared using the Porter's 5 Forces analysis of Air Deccan: The First Low Cost Airline In India Case Analysis are provided as follows;
• Utilization of strong global brand name position and financial resources in broadening towards possible markets.
• Distinct brand experience might assist the company to much better position itself in brand-new markets.
• Resistance in expansion in the possible global markets motivating diversity.
• High prices restricts the expansion in numerous Asian and African countries with low per capita income.
• Strong brand name recognition, non-traditional ways of marketing and the special brand name experience could be utilized to minimize the hazard from possible clients.
• Rigorous look policies might resulted in the customer shift towards Victoria with high social duty.
• Limited target audience could resulted in a decrease in the overall market share of the company.
These strategies might 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 Air Deccan: The First Low Cost Airline In India Case Help might be carried out to examine the schedule of funds to the business that might be made use of in growth towards global markets. The financial position of the company could be evaluated by utilizing the information given in the case Exhibit 1. The ratios that could be considered in financial efficiency analysis are given in the Table 1 listed below;

From the above Table 1, it could be seen that the company has a sensible financial performance with a ROE of 7.9% and a high sales development of 18.4%. A 4.3% net earnings margin does not seems to be prospective and the company must put efforts in increasing its earnings along with reducing its operational expenditures to increase its earnings margins.

Porter's 5 Forces analysis of Air Deccan: The First Low Cost Airline In India Case Solution

Segmentation

The division analysis includes the analysis of various company segments of the company in domestic and the worldwide, markets. The majority of the company's Physical stores lie in US including above 500 stores in practically each of the state of US. The business has also an international existence in 8 different countries with its greatest number of stores located in United Kingdom i.e. 21. The companyhas a total of 54 stores in international markets that is probably the 10% of its stores in the US. It indicates that majority of the revenues of the company originated from the local markets. Moreover, the company is considering to broaden its shops into 7 more European and Asian countries. A chart showing the existence of the business in different international markets is given up the Appendix 2.

Targeting


The business targets its clothes brand to the young, high and attractive teens and kids that are considered to be cool. This targeting policy is accountable for different differences in the business related to its competitors. For instance, the business works with great looking males and females for its stores and follows a stringent look policy to maintain attraction of good-looking people towards its shops and offer a distinct brand experience.

Positioning


The business has placed its brand as a high-end brand targeting just a particular market segment. The company with its non-traditional ways of marketing through designs 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 brings in numerous elite individuals towards the brand but it harms the company's position in different communities focused at the equality in society.

External Analysis

Competitor Analysis


Porter's 5 Forces analysis of Air Deccan: The First Low Cost Airline In India Case Analysis faces a lot of competition in the market with the existence of various number of competitors in the market. Gap is also considered to be a potential competitor in local as well as in worldwide; markets as the company is thinking about to move in the international markets.



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