Porter's 5 Forces analysis of Cummins India: Consumer Driven Modularization Strategy Case Solution

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Porter's 5 Forces analysis of Cummins India: Consumer Driven Modularization Strategy Case Study Solution

A Porter's 5 Forces analysis of Cummins India: Consumer Driven Modularization Strategy Case Analysis might be conducted to develop numerous strategies utilizing the strengths of the business to obtain opportunities, overcome weaknesses and to lower the risks. It could likewise be used to evaluate that how certain weaknesses withstand specific chances and increase the threats. The methods prepared using the Porter's 5 Forces analysis of Cummins India: Consumer Driven Modularization Strategy Case Help are given as follows;
• Usage of strong international brand name position and financial resources in broadening towards potential markets.
• Distinct brand experience could assist the business to much better position itself in brand-new markets.
• Resistance in expansion in the possible global markets motivating variety.
• High prices limits the expansion in various Asian and African nations with low per capita income.
• Strong brand name acknowledgment, non-traditional methods of marketing and the special brand experience could be utilized to decrease the risk from possible clients.
• Strict look policies could resulted in the customer shift towards Victoria with high social responsibility.
• Minimal target markets might 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 Cummins India: Consumer Driven Modularization Strategy Case Analysis could be carried out to examine the availability of financial resources to the company that might be made use of in expansion towards international markets. The monetary position of the company might be examined by utilizing the data given up the case Exhibit 1. The ratios that might be thought about in monetary performance analysis are given up the Table 1 listed below;

From the above Table 1, it might be seen that the company has a sensible financial performance with a ROE of 7.9% and a high sales development of 18.4%. Although, a 4.3% net profit margin does not appears to be prospective and the business needs to put efforts in increasing its earnings along with minimizing its operational expenses to increase its earnings margins.

Porter's 5 Forces analysis of Cummins India: Consumer Driven Modularization Strategy Case Help

Segmentation

The segmentation analysis consists of the analysis of numerous service sectors of the business in domestic and the global, markets. The majority of the company's Physical shops are located in United States including above 500 stores in nearly each of the state of US. The company has also a worldwide presence in 8 various countries 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 probably the 10% of its shops in the United States. It suggests that majority of the profits of the business originated from the regional markets. The company is considering to broaden its shops into 7 more European and Asian countries. A chart showing the existence of the company in different international markets is given up the Appendix 2.

Targeting

The business 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 differences in the business associated with its competitors. For example, the company works with good looking men and women for its stores and follows a stringent look policy to preserve tourist attraction of good-looking people towards its shops and provide a distinct brand 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 ways of marketing through models and agents posters its brand image as a high-end clothes brand targeted to the cool and attractive personalities in society. Although, this market position brings in numerous elite people towards the brand but it injures the business's position in numerous neighborhoods focused at the equality in society.

External Analysis

Competitor Analysis

Porter's 5 Forces analysis of Cummins India: Consumer Driven Modularization Strategy Case Solution faces a lot of competition in the market with the presence of various number of rivals in the market. Space is likewise thought about to be a possible rival in local as well as in international; markets as the company is considering to move in the worldwide markets.

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