Porter's 5 Forces analysis of Li And Fung: The Global Value Chain Configurator Case Analysis

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Porter's 5 Forces analysis of Li And Fung: The Global Value Chain Configurator Case Study Analysis

A Porter's 5 Forces analysis of Li And Fung: The Global Value Chain Configurator Case Analysis could be performed to develop various methods utilizing the strengths of the company to obtain opportunities, overcome weak points and to minimize the dangers. It might also be used to examine that how particular weaknesses resist certain opportunities and increase the risks. The strategies drafted using the Porter's 5 Forces analysis of Li And Fung: The Global Value Chain Configurator Case Help are provided as follows;
• Utilization of strong global brand position and financial resources in expanding towards potential markets.
• Special brand experience could help out the business to much better position itself in new markets.
• Resistance in growth in the potential international markets motivating diversity.
• High prices limits the growth in numerous Asian and African countries with low per capita earnings.
• Strong brand acknowledgment, non-traditional methods of marketing and the unique brand name experience could be utilized to lower the threat from potential consumers.
• Strict appearance policies could led to the consumer shift towards Victoria with high social obligation.
• Restricted target audience 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

Financial analysis for Porter's 5 Forces analysis of Li And Fung: The Global Value Chain Configurator Case Analysis might be performed to assess the schedule of funds to the company that might be used in expansion towards international markets. The financial position of the business might be evaluated by using the information given in the case Exhibit 1. The ratios that might be thought about in monetary efficiency analysis are given in the Table 1 listed below;

From the above Table 1, it might be seen that the company has an affordable monetary performance with a ROE of 7.9% and a high sales growth of 18.4%. A 4.3% net revenue margin does not seems to be potential and the business must put efforts in increasing its incomes along with lowering its functional expenses to increase its revenue margins.

Porter's 5 Forces analysis of Li And Fung: The Global Value Chain Configurator Case Help

Segmentation

The division analysis consists of the analysis of various business sections of the company in domestic and the international, markets. Most of the company's Physical shops lie in US including above 500 shops in nearly each of the state of US. However, the business has likewise a worldwide presence in 8 different nations with its greatest variety of stores located in UK i.e. 21. The companyhas a total of 54 stores in worldwide markets that is most likely the 10% of its shops in the United States. It implies that bulk of the incomes of the company originated from the local markets. Moreover, the company is considering to broaden its stores into 7 more European and Asian nations. A chart revealing the presence of the company in different global markets is given up the Appendix 2.

Targeting

The business targets its clothing brand to the young, tall and attractive teenagers and kids that are thought about to be cool. This targeting policy is accountable for numerous distinctions in the business related to its rivals. For instance, the business employs good looking males and females for its stores and follows a rigorous appearance policy to maintain attraction of good-looking individuals towards its shops and provide a distinct brand name experience.

Positioning

The company has actually positioned its brand name as a high-end brand targeting only a specific market section. The business with its non-traditional methods of marketing through models and representatives posters its brand name image as a luxury clothes brand targeted to the cool and good-looking characters in society. Although, this market position attracts various elite individuals towards the brand but it harms the company's position in numerous neighborhoods focused at the equality in society.

External Analysis

Competitor Analysis

Porter's 5 Forces analysis of Li And Fung: The Global Value Chain Configurator Case Analysis faces a lot of competitors in the market with the presence of numerous number of rivals in the market. Space is also thought about to be a potential competitor in regional as well as in worldwide; markets as the company is considering to move in the worldwide markets.

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