Porter's 5 Forces analysis of Tcl-Thomson Electronics Corporation A Failed Joint Venture Case Analysis

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Porter's 5 Forces analysis of Tcl-Thomson Electronics Corporation A Failed Joint Venture Case Study Solution

Porter's 5 Forces AnalysisA Porter's 5 Forces analysis of Tcl-Thomson Electronics Corporation A Failed Joint Venture Case Analysis could be carried out to design various strategies using the strengths of the business to obtain opportunities, conquer weak points and to lower the hazards. It might likewise be utilized to examine that how specific weaknesses withstand particular opportunities and increase the hazards. The techniques drafted using the Porter's 5 Forces analysis of Tcl-Thomson Electronics Corporation A Failed Joint Venture Case Analysis are offered as follows;
• Usage of strong global brand name position and funds in expanding towards possible markets.
• Distinct brand name experience might help out the business to better position itself in new markets.
• Resistance in expansion in the potential international markets motivating variety.
• High costs limits the expansion in numerous Asian and African countries with low per capita income.
• Strong brand acknowledgment, non-traditional methods of marketing and the unique brand name experience might be made use of to reduce the hazard from possible customers.
• Strict appearance policies could led to the customer shift towards Victoria with high social responsibility.
• Minimal target markets might caused a decline in the overall market share of the company.
These strategies might help the company 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 Tcl-Thomson Electronics Corporation A Failed Joint Venture Case Solution could be performed to evaluate the accessibility of financial resources to the company that could be utilized in expansion towards global markets. The monetary position of the business might be examined by using the information given in the case Exhibition 1. The ratios that might be considered in financial performance analysis are given in the Table 1 listed below;

From the above Table 1, it might be seen that the company has an affordable monetary efficiency with a ROE of 7.9% and a high sales development of 18.4%. A 4.3% net earnings margin does not seems to be possible and the business needs to put efforts in increasing its profits along with minimizing its functional expenditures to increase its profit margins.

Porter's 5 Forces analysis of Tcl-Thomson Electronics Corporation A Failed Joint Venture Case Analysis

Segmentation

The division analysis consists of the analysis of numerous business sections of the business in domestic and the international, markets. Most of the business's Traditional stores are located in United States consisting of above 500 stores in nearly each of the state of US. The business has likewise a global existence in 8 different countries with its highest number of shops situated in United Kingdom i.e. 21. The companyhas an overall of 54 shops in worldwide markets that is most likely the 10% of its stores in the United States. It suggests that bulk of the profits of the company originated from the regional markets. The company is thinking about to broaden its stores into 7 more European and Asian countries. A chart revealing the existence of the business in various global markets is given in the Appendix 2.

Targeting


The company targets its clothing brand name to the young, high and good-looking teenagers and kids that are considered to be cool. This targeting policy is responsible for various distinctions in the business connected to its competitors. For example, the company hires excellent looking men and women for its stores and follows a rigorous appearance policy to keep tourist attraction of attractive people towards its stores and provide a distinct brand name experience.

Positioning


The company has positioned its brand as a high-end brand targeting only a particular market section. The business with its non-traditional ways of marketing through designs and agents posters its brand name image as a luxury clothes brand targeted to the cool and good-looking characters in society. This market position draws in numerous elite people towards the brand name however it hurts the business's position in various neighborhoods focused at the equality in society.

External Analysis

Competitor Analysis


Porter's 5 Forces analysis of Tcl-Thomson Electronics Corporation A Failed Joint Venture Case Help deals with a lot of competitors in the market with the existence of numerous variety of competitors in the market. A chart revealing the close rivals together with their qualities and the marketing method is given up. it might be seen that the American Eagle Outfitters is thought about to be the greatest rivals for business with its marketing strategy associated to the television shows. Additionally, Gap is also considered to be a possible rival in regional in addition to in worldwide; markets as the company is considering to move in the worldwide markets. Together with it, Tcl-Thomson Electronics Corporation A Failed Joint Venture Case Study Solution. with its versatile rates technique and the Victoria's Street with its strong social status pose an extreme hazard to the current market share of the Porter's 5 Forces analysis of Tcl-Thomson Electronics Corporation A Failed Joint Venture Case Help.



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