Porter's 5 Forces analysis of Sears Logistics Management Practices Case Solution

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Porter's 5 Forces analysis of Sears Logistics Management Practices Case Study Analysis

A Porter's 5 Forces analysis of Sears Logistics Management Practices Case Analysis could be performed to design different techniques using the strengths of the company to obtain chances, conquer weaknesses and to lower the hazards. It could likewise be utilized to evaluate that how specific weaknesses resist particular chances and increase the hazards. The strategies prepared utilizing the Porter's 5 Forces analysis of Sears Logistics Management Practices Case Help are provided as follows;
• Utilization of strong international brand name position and funds in broadening towards potential markets.
• Unique brand experience could assist the business to better position itself in new markets.
• Resistance in expansion in the prospective international markets motivating diversity.
• High costs restricts the expansion in numerous Asian and African countries with low per capita earnings.
• Strong brand name recognition, non-traditional ways of marketing and the distinct brand name experience could be used to reduce the danger from possible clients.
• Rigorous look policies might caused the customer shift towards Victoria with high social responsibility.
• Minimal target markets could caused a decline in the total market share of the company.
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 Sears Logistics Management Practices Case Solution could be performed to examine the accessibility of financial resources to the company that could be utilized in expansion towards worldwide markets. The monetary position of the company might be examined by using the data given up the case Exhibit 1. The ratios that might be considered in financial efficiency analysis are given up the Table 1 listed below;

From the above Table 1, it might be seen that the company has a reasonable 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 seems to be prospective and the company must put efforts in increasing its revenues together with decreasing its operational costs to increase its earnings margins.

Porter's 5 Forces analysis of Sears Logistics Management Practices Case Analysis

Segmentation

The segmentation analysis includes the analysis of numerous company sections of the business in domestic and the worldwide, markets. Most of the business's Brick and Mortar stores are located in US including above 500 stores in nearly each of the state of US. The company has also a global existence in 8 different nations with its greatest number of shops situated in United Kingdom i.e. 21. The companyhas a total of 54 stores in worldwide markets that is most likely the 10% of its shops in the US. It suggests that bulk of the revenues of the company originated from the regional markets. Additionally, the company is thinking about to broaden its shops into 7 more European and Asian nations. A chart showing the existence of the company in various worldwide markets is given up the Appendix 2.

Targeting

The company targets its clothes brand to the young, high and good-looking teens and kids that are considered to be cool. This targeting policy is accountable for different differences in the company connected to its rivals. For example, the company hires good looking men and women for its stores and follows a strict look policy to preserve tourist attraction of good-looking people towards its stores and provide an unique brand experience.

Positioning

The business has positioned its brand as a high-end brand name targeting just a particular market segment. The business with its non-traditional ways of marketing through designs and agents posters its brand image as a luxury clothes brand targeted to the cool and attractive personalities in society. This market position attracts numerous elite individuals towards the brand name however it injures the business's position in numerous communities focused at the equality in society.

External Analysis

Competitor Analysis

Porter's 5 Forces analysis of Sears Logistics Management Practices Case Analysis faces a lot of competition in the market with the existence of numerous number of competitors in the market. Gap is also thought about to be a potential rival in local as well as in global; markets as the business is thinking about to shift in the worldwide markets.



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