Porter's 5 Forces analysis of Hp-Compaq: A Failed Merger Case Analysis

Home >> Ibs Center For Management Research >> Hp-Compaq: A Failed Merger >> Porter's 5 Forces analysis

Porter's 5 Forces analysis of Hp-Compaq: A Failed Merger Case Study Analysis

Porter's 5 Forces AnalysisA Porter's 5 Forces analysis of Hp-Compaq: A Failed Merger Case Solution could be carried out to design various methods using the strengths of the company to obtain chances, overcome weaknesses and to minimize the threats. It might also be utilized to examine that how specific weak points resist particular chances and increase the dangers. The strategies drafted using the Porter's 5 Forces analysis of Hp-Compaq: A Failed Merger Case Solution are offered as follows;
• Usage of strong international brand position and funds in broadening towards prospective markets.
• Unique brand experience could assist the business to much better position itself in new markets.
• Resistance in growth in the possible worldwide markets motivating variety.
• High costs restricts the expansion in different Asian and African countries with low per capita income.
• Strong brand name recognition, non-traditional methods of marketing and the special brand name experience could be used to decrease the danger from prospective customers.
• Strict appearance policies might led to the customer shift towards Victoria with high social duty.
• Restricted target markets might caused a decrease in the overall market share of the company.
These techniques could assist the business to improvise its market position and be at the leading position in the market.

Financial Analysis


Financial analysis for Porter's 5 Forces analysis of Hp-Compaq: A Failed Merger Case Analysis might be conducted to evaluate the schedule of financial resources to the company that might be utilized in growth towards worldwide markets. The monetary position of the company might be evaluated by using the data given up the case Display 1. The ratios that could be thought about in monetary efficiency analysis are given in the Table 1 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 growth of 18.4%. A 4.3% net profit margin does not seems to be prospective and the company should put efforts in increasing its earnings along with minimizing its functional costs to increase its profit margins.

Porter's 5 Forces analysis of Hp-Compaq: A Failed Merger Case Solution

Segmentation

The segmentation analysis includes the analysis of numerous organisation segments of the business in domestic and the global, markets. The majority of the company's Brick and Mortar stores are located in US consisting of above 500 stores in almost each of the state of United States. The business has also a worldwide existence in 8 different nations with its greatest number of shops located in United Kingdom i.e. 21. The companyhas a total of 54 shops in global markets that is probably the 10% of its stores in the US. It suggests that bulk of the incomes of the company originated from the local markets. Additionally, the business is thinking about to expand its stores into 7 more European and Asian countries. A chart revealing the presence of the company in various international markets is given up the Appendix 2.

Targeting


The business targets its clothing brand name to the young, tall and attractive teens and kids that are considered to be cool. This targeting policy is accountable for different distinctions in the company related to its competitors. For instance, the business employs excellent looking males and females for its shops and follows a rigorous appearance policy to keep attraction of attractive people towards its shops and supply an unique brand name experience.

Positioning


The company has actually positioned its brand name as a high-end brand name targeting only a specific market sector. The company with its non-traditional ways of marketing through models and agents posters its brand name image as a luxury clothes brand name targeted to the cool and attractive characters in society. This market position brings in numerous elite people towards the brand name however it injures the company's position in various neighborhoods focused at the equality in society.

External Analysis

Competitor Analysis


Porter's 5 Forces analysis of Hp-Compaq: A Failed Merger Case Help faces a lot of competition in the market with the presence of various number of rivals in the market. Gap is also considered to be a possible rival in local as well as in international; markets as the company is thinking about to move in the international markets.



This is sample work and not applicable to real case study. Please place the order on the website to get your own originally done case solution.