Porter's 5 Forces analysis of Sumitomo Corporation Of Japan The Commodity Derivatives Fiasco Case Solution

Home >> Ibs Center For Management Research >> Sumitomo Corporation Of Japan The Commodity Derivatives Fiasco >> Porter's 5 Forces analysis

Porter's 5 Forces analysis of Sumitomo Corporation Of Japan The Commodity Derivatives Fiasco Case Study Analysis

A Porter's 5 Forces analysis of Sumitomo Corporation Of Japan The Commodity Derivatives Fiasco Case Analysis could be carried out to create numerous techniques using the strengths of the company to get opportunities, conquer weaknesses and to reduce the threats. It might likewise be utilized to examine that how certain weaknesses resist specific chances and increase the threats. The methods prepared using the Porter's 5 Forces analysis of Sumitomo Corporation Of Japan The Commodity Derivatives Fiasco Case Analysis are offered as follows;
• Utilization of strong international brand position and financial resources in expanding towards potential markets.
• Unique brand name experience could assist the company to better position itself in new markets.
• Resistance in expansion in the potential global markets encouraging diversity.
• High prices limits the growth in various Asian and African nations with low per capita income.
• Strong brand acknowledgment, non-traditional ways of marketing and the special brand experience could be used to decrease the danger from prospective clients.
• Strict look policies might caused the consumer shift towards Victoria with high social duty.
• Limited target markets could caused a decrease in the overall market share of the business.
These methods might help 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 Sumitomo Corporation Of Japan The Commodity Derivatives Fiasco Case Analysis might be conducted to evaluate the availability of funds to the business that might be utilized in expansion towards international markets. The monetary position of the business could be assessed by using the data given in the case Exhibit 1. The ratios that might be considered in financial efficiency analysis are given up the Table 1 below;

From the above Table 1, it could be seen that the business has an affordable monetary efficiency with a ROE of 7.9% and a high sales development of 18.4%. A 4.3% net profit margin does not appears to be potential and the company must put efforts in increasing its incomes along with minimizing its functional expenses to increase its profit margins.

Porter's 5 Forces analysis of Sumitomo Corporation Of Japan The Commodity Derivatives Fiasco Case Solution

Segmentation

The division analysis consists of the analysis of different organisation segments of the business in domestic and the international, markets. The majority of the company's Traditional shops lie in United States consisting of above 500 stores in almost each of the state of United States. The business has likewise a worldwide existence in 8 various nations with its highest number of shops situated in United Kingdom i.e. 21. The companyhas a total of 54 shops in worldwide markets that is probably the 10% of its stores in the US. It indicates that majority of the incomes of the company originated from the regional markets. Additionally, the business is considering to expand its stores into 7 more European and Asian nations. A chart showing the existence of the business in different global markets is given in the Appendix 2.

Targeting

The company targets its clothes brand name to the young, tall and good-looking teens and kids that are thought about to be cool. This targeting policy is responsible for numerous differences in the business related to its rivals. For example, the company employs excellent looking men and women for its shops and follows a strict appearance policy to keep tourist attraction of attractive individuals towards its shops and offer a special brand experience.

Positioning

The business has placed its brand as a high-end brand name targeting only a specific market segment. The company with its non-traditional ways of marketing through models and agents posters its brand image as a high-end clothing brand name targeted to the cool and good-looking personalities in society. This market position draws in different elite people towards the brand but it injures the company's position in numerous neighborhoods focused at the equality in society.

External Analysis

Competitor Analysis

Porter's 5 Forces analysis of Sumitomo Corporation Of Japan The Commodity Derivatives Fiasco Case Help deals with a lot of competitors in the market with the existence of numerous number of competitors in the market. Gap is also considered to be a potential competitor in regional as well as in international; markets as the business is considering to move in the worldwide 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.