Porter's 5 Forces analysis of British American Tobacco In South Korea Case Help

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Porter's 5 Forces analysis of British American Tobacco In South Korea Case Study Solution

A Porter's 5 Forces analysis of British American Tobacco In South Korea Case Solution might be conducted to design different techniques using the strengths of the company to avail opportunities, get rid of weaknesses and to minimize the risks. It could likewise be used to assess that how particular weaknesses resist particular opportunities and increase the dangers. The methods prepared using the Porter's 5 Forces analysis of British American Tobacco In South Korea Case Help are provided as follows;
• Utilization of strong worldwide brand name position and financial resources in expanding towards potential markets.
• Special brand experience might help out the company to better position itself in new markets.
• Resistance in growth in the possible worldwide markets motivating diversity.
• High costs limits the expansion in numerous Asian and African countries with low per capita income.
• Strong brand name recognition, non-traditional methods of marketing and the special brand experience might be made use of to lower the risk from prospective customers.
• Strict look policies might caused the customer shift towards Victoria with high social duty.
• Minimal target audience could led to a decrease in the total market share of the business.
These strategies 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 British American Tobacco In South Korea Case Analysis might be carried out to examine the schedule of funds to the company that could be utilized in growth towards global markets. The monetary position of the company could be evaluated by using the data given in the case Exhibition 1. The ratios that might be considered in monetary performance analysis are given in the Table 1 listed below;

From the above Table 1, it could be seen that the business has a sensible monetary performance with a ROE of 7.9% and a high sales development of 18.4%. Although, a 4.3% net profit margin does not seems to be possible and the business should put efforts in increasing its earnings along with minimizing its functional expenses to increase its revenue margins.

Porter's 5 Forces analysis of British American Tobacco In South Korea Case Analysis

Segmentation

Most of the business's Brick and Mortar stores are located in United States including above 500 shops in nearly each of the state of United States. The business has likewise a worldwide presence in 8 various nations with its greatest number of stores 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 US.

Targeting

The company targets its clothes brand name to the young, high and good-looking teens and kids that are thought about to be cool. This targeting policy is accountable for different differences in the business connected to its rivals. For example, the company hires excellent looking males and females for its stores and follows a strict appearance policy to preserve attraction of attractive people towards its stores and offer a special brand experience.

Positioning

The business has placed its brand as a high-end brand name targeting just a particular market sector. 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 attractive characters in society. Although, this market position draws in numerous elite individuals towards the brand name however it harms the company's position in various neighborhoods focused at the equality in society.

External Analysis

Competitor Analysis

Porter's 5 Forces analysis of British American Tobacco In South Korea Case Solution faces a lot of competition in the market with the presence of numerous number of competitors in the market. Gap is likewise considered to be a possible rival in local as well as in global; markets as the business is thinking about to move in the international markets.

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