Porter's 5 Forces analysis of Sony-Columbia Pictures: Lessons From A Cross Border Acquisition Case Analysis

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Porter's 5 Forces analysis of Sony-Columbia Pictures: Lessons From A Cross Border Acquisition Case Study Analysis

Porter's 5 Forces AnalysisA Porter's 5 Forces analysis of Sony-Columbia Pictures: Lessons From A Cross Border Acquisition Case Analysis might be conducted to design different methods using the strengths of the company to obtain chances, overcome weaknesses and to lower the risks. It might also be utilized to examine that how particular weaknesses resist certain chances and increase the threats. The methods drafted using the Porter's 5 Forces analysis of Sony-Columbia Pictures: Lessons From A Cross Border Acquisition Case Solution are offered as follows;
• Usage of strong global brand name position and financial resources in expanding towards prospective markets.
• Distinct brand experience could assist the business to much better position itself in new markets.
• Resistance in growth in the possible worldwide markets encouraging variety.
• High rates restricts the expansion in various Asian and African countries with low per capita income.
• Strong brand acknowledgment, non-traditional methods of marketing and the unique brand experience might be used to decrease the danger from possible clients.
• Rigorous appearance policies could caused the consumer shift towards Victoria with high social obligation.
• Minimal target audience could resulted in a decline in the total market share of the company.
These strategies might assist the business 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 Sony-Columbia Pictures: Lessons From A Cross Border Acquisition Case Solution might be conducted to assess the accessibility of funds to the business that could be utilized in expansion towards worldwide markets. The financial position of the business could be assessed by utilizing the information given up the case Exhibit 1. The ratios that might be considered in monetary performance analysis are given in the Table 1 listed below;

From the above Table 1, it could be seen that the company has an affordable financial efficiency with a ROE of 7.9% and a high sales growth of 18.4%. Although, a 4.3% net revenue margin does not appears to be possible and the business must put efforts in increasing its incomes along with reducing its operational costs to increase its earnings margins.

Porter's 5 Forces analysis of Sony-Columbia Pictures: Lessons From A Cross Border Acquisition Case Analysis

Segmentation

The segmentation analysis consists of the analysis of different service segments of the business in domestic and the international, markets. Most of the company's Traditional shops lie in US consisting of above 500 stores in practically each of the state of United States. The company has also a global existence in 8 different nations with its greatest number of shops located in United Kingdom i.e. 21. The companyhas an overall of 54 shops in global markets that is probably the 10% of its shops in the United States. It implies that majority of the revenues of the business come from the local markets. The business is thinking about to broaden its stores into 7 more European and Asian nations. A chart showing the existence 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 teens and kids that are thought about to be cool. This targeting policy is responsible for numerous distinctions in the company connected to its competitors. The business employs great looking guys and ladies for its stores and follows a stringent look policy to maintain destination of good-looking individuals towards its stores and provide a special brand experience.

Positioning


The business has actually 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 name image as a high-end clothes brand name targeted to the cool and good-looking personalities in society. Although, this market position draws in different elite individuals towards the brand name however it harms the business's position in various communities focused at the equality in society.

External Analysis

Competitor Analysis


Porter's 5 Forces analysis of Sony-Columbia Pictures: Lessons From A Cross Border Acquisition Case Solution faces a lot of competitors in the market with the presence of different number of competitors in the market. Space is likewise considered to be a potential competitor in regional as well as in global; markets as the company is considering to shift in the international markets.



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