Porter's 5 Forces analysis of Marriotts Customer-Focused E-Business Strategy Case Solution

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Porter's 5 Forces analysis of Marriotts Customer-Focused E-Business Strategy Case Study Analysis

A Porter's 5 Forces analysis of Marriotts Customer-Focused E-Business Strategy Case Analysis could be conducted to create various strategies using the strengths of the company to avail opportunities, overcome weak points and to decrease the risks. It might likewise be utilized to examine that how certain weak points withstand particular chances and increase the dangers. The strategies drafted utilizing the Porter's 5 Forces analysis of Marriotts Customer-Focused E-Business Strategy Case Analysis are given as follows;
• Usage of strong global brand position and funds in expanding towards prospective markets.
• Special brand name experience might help out the company to better position itself in brand-new markets.
• Resistance in growth in the prospective worldwide markets motivating variety.
• High costs restricts the expansion in different Asian and African countries with low per capita earnings.
• Strong brand name recognition, non-traditional methods of marketing and the unique brand experience could be utilized to reduce the threat from prospective consumers.
• Rigorous look policies could caused the consumer shift towards Victoria with high social duty.
• Limited target audience might resulted in a decline 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 Marriotts Customer-Focused E-Business Strategy Case Solution might be performed to evaluate the accessibility of financial resources to the company that could be used in growth towards international markets. The monetary position of the company might be assessed by using the data given up the case Exhibit 1. The ratios that might be considered in monetary performance analysis are given up the Table 1 below;

From the above Table 1, it could be seen that the business has a reasonable financial efficiency with a ROE of 7.9% and a high sales growth of 18.4%. A 4.3% net earnings margin does not appears to be possible and the business needs to put efforts in increasing its revenues along with lowering its functional expenses to increase its revenue margins.

Porter's 5 Forces analysis of Marriotts Customer-Focused E-Business Strategy Case Solution

Segmentation

The segmentation analysis consists of the analysis of numerous company sections of the business in domestic and the worldwide, markets. Most of the company's Brick and Mortar shops lie in United States consisting of above 500 shops in almost each of the state of United States. However, the company has also a worldwide existence in 8 various nations with its greatest variety of stores situated in United Kingdom i.e. 21. The companyhas an overall of 54 shops in global markets that is most likely the 10% of its stores in the US. It indicates that bulk of the earnings of the business come from the local markets. Moreover, the business is thinking about to broaden its shops into 7 more European and Asian nations. A chart showing the presence of the company in numerous worldwide markets is given up the Appendix 2.

Targeting

The company targets its clothes brand name to the young, high and good-looking teenagers and kids that are thought about to be cool. This targeting policy is responsible for various differences in the company related to its competitors. The business employs great looking men and ladies for its stores and follows a rigorous look policy to keep destination of attractive people towards its shops and provide an unique brand name experience.

Positioning

The business has actually placed its brand as a high-end brand targeting only a particular market sector. The company with its non-traditional methods of marketing through models and agents posters its brand image as a luxury clothing brand targeted to the cool and attractive personalities in society. Although, this market position brings in various elite individuals towards the brand name but it hurts the business's position in numerous communities focused at the equality in society.

External Analysis

Competitor Analysis

Porter's 5 Forces analysis of Marriotts Customer-Focused E-Business Strategy Case Solution faces a lot of competition in the market with the presence of different number of rivals in the market. Gap is likewise considered to be a prospective competitor in local as well as in worldwide; markets as the business is considering to move in the international markets.



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