Porter's 5 Forces analysis of American International Group Inc Case Analysis
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Porter's 5 Forces analysis of American International Group Inc Case Study Help
A Porter's 5 Forces analysis of American International Group Inc Case Analysis might be performed to develop numerous strategies using the strengths of the business to get opportunities, get rid of weaknesses and to reduce the threats. It might likewise be utilized to examine that how particular weaknesses resist certain chances and increase the hazards. The strategies prepared utilizing the Porter's 5 Forces analysis of American International Group Inc Case Help are given as follows;
• Utilization of strong global brand position and financial resources in broadening towards potential markets.
• Special brand experience could help out the business to much better position itself in brand-new markets.
• Resistance in expansion in the possible global markets motivating diversity.
• High rates restricts the growth in numerous Asian and African nations with low per capita earnings.
• Strong brand recognition, non-traditional methods of marketing and the distinct brand name experience could be used to reduce the threat from prospective customers.
• Stringent look policies could caused the customer shift towards Victoria with high social duty.
• Minimal target markets might caused a decrease in the total market share of the company.
These methods 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 American International Group Inc Case Analysis might be performed to evaluate the availability of funds to the company that might be utilized in growth towards international markets. The financial position of the company might be evaluated by using the information given up the case Exhibition 1. The ratios that could be thought about in monetary performance analysis are given in the Table 1 below;
From the above Table 1, it could be seen that the business has a sensible financial efficiency with a ROE of 7.9% and a high sales development of 18.4%. Although, a 4.3% net revenue margin does not seems to be prospective and the business should put efforts in increasing its incomes in addition to reducing its functional expenditures to increase its revenue margins.
Porter's 5 Forces analysis of American International Group Inc Case Analysis
Segmentation
The segmentation analysis includes the analysis of numerous company sectors of the business in domestic and the international, markets. The majority of the business's Physical shops are located in United States including above 500 shops in nearly each of the state of United States. The company has likewise a global presence in 8 various nations with its greatest number of shops located in United Kingdom i.e. 21. The companyhas an overall of 54 stores in global markets that is probably the 10% of its stores in the US. It implies that bulk of the earnings of the company originated from the local markets. Moreover, the business is considering to broaden its stores into 7 more European and Asian countries. A chart revealing the existence of the company in various global markets is given in the Appendix 2.
Targeting
The company targets its clothes brand to the young, tall and good-looking teens and kids that are considered to be cool. This targeting policy is responsible for different distinctions in the company related to its rivals. The company works with good looking guys and ladies for its stores and follows a rigorous appearance policy to keep destination of good-looking individuals towards its shops and offer a distinct brand name experience.
Positioning
The company has positioned its brand as a high-end brand targeting just a specific market segment. The company with its non-traditional methods of marketing through models and agents posters its brand name image as a luxury clothing brand targeted to the cool and good-looking characters in society. This market position brings in different elite individuals towards the brand name however it hurts the company's position in different neighborhoods focused at the equality in society.
External Analysis
Competitor Analysis
Porter's 5 Forces analysis of American International Group Inc Case Analysis deals with a great deal of competitors in the market with the existence of various variety of competitors in the market. A chart revealing the close rivals together with their qualities and the marketing method is given up. it could be seen that the American Eagle Outfitters is considered to be the strongest rivals for company with its marketing method related to the tv shows. Moreover, Space is likewise thought about to be a prospective rival in local along with in international; markets as the company is thinking about to move in the worldwide markets. In addition to it, American International Group Inc Case Study Analysis. with its versatile pricing method and the Victoria's Street with its strong social status position a severe hazard to the present market share of the Porter's 5 Forces analysis of American International Group Inc Case Analysis.
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