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

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

A Porter's 5 Forces analysis of Sumitomo Corporation Of Japan: The Commodity Derivatives Fiasco Case Solution might be carried out to create various methods using the strengths of the business to obtain opportunities, overcome weaknesses and to minimize the dangers. It might also be utilized to evaluate that how certain weak points resist specific opportunities and increase the hazards. The techniques prepared utilizing the Porter's 5 Forces analysis of Sumitomo Corporation Of Japan: The Commodity Derivatives Fiasco Case Analysis are offered as follows;
• Utilization of strong global brand position and funds in broadening towards prospective markets.
• Special brand name experience might assist the company to better position itself in brand-new markets.
• Resistance in growth in the potential international markets encouraging diversity.
• High prices restricts the growth in different Asian and African nations with low per capita earnings.
• Strong brand acknowledgment, non-traditional methods of marketing and the special brand experience could be utilized to lower the risk from potential customers.
• Rigorous appearance policies could caused the customer shift towards Victoria with high social obligation.
• Limited target markets could resulted in a decline in the total market share of the company.
These strategies could 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 carried out to evaluate the availability of funds to the business that might be utilized in expansion towards global markets. The financial position of the business could be examined by using the information given in the case Exhibition 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 company has a reasonable monetary efficiency with a ROE of 7.9% and a high sales growth of 18.4%. Although, a 4.3% net earnings margin does not appears to be possible and the company should put efforts in increasing its profits along with lowering its operational expenditures to increase its earnings margins.

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

Segmentation

Many of the company's Brick and Mortar shops are located in US consisting of above 500 shops in nearly each of the state of US. The business has also a worldwide presence in 8 different nations with its highest number of stores situated in United Kingdom i.e. 21. The companyhas an overall of 54 stores in global markets that is probably the 10% of its stores in the United States.

Targeting

The company targets its clothes brand to the young, tall and good-looking teens and kids that are considered to be cool. This targeting policy is responsible for different distinctions in the company connected to its competitors. The business employs good looking men and females for its stores and follows a strict look policy to maintain attraction of attractive individuals towards its stores and provide a distinct brand name experience.

Positioning

The company has placed its brand name as a high-end brand name targeting only a specific market sector. The company with its non-traditional methods of marketing through models and agents posters its brand name image as a luxury clothes brand name targeted to the cool and attractive characters in society. This market position brings in various elite individuals towards the brand name however it harms the company's position in different communities 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 Solution faces a great deal of competition in the market with the existence of various number of competitors in the market. A chart showing the close competitors in addition to their attributes and the marketing technique is given in. it might be seen that the American Eagle Outfitters is considered to be the greatest competitors for business with its marketing technique related to the television shows. Space is likewise thought about to be a possible rival in local as well as in worldwide; markets as the business is considering to move in the international markets. Together with it, Sumitomo Corporation Of Japan: The Commodity Derivatives Fiasco Case Study Help. with its flexible rates technique and the Victoria's Street with its strong social status posture a serious threat to the current market share of the Porter's 5 Forces analysis of Sumitomo Corporation Of Japan: The Commodity Derivatives Fiasco Case Help.

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