Porter's 5 Forces analysis of The Lucent Accounting Scandal Case Analysis

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Porter's 5 Forces analysis of The Lucent Accounting Scandal Case Study Help

A Porter's 5 Forces analysis of The Lucent Accounting Scandal Case Solution might be performed to develop numerous strategies utilizing the strengths of the company to get opportunities, get rid of weaknesses and to minimize the risks. It might likewise be utilized to assess that how certain weaknesses withstand particular chances and increase the hazards. The methods drafted using the Porter's 5 Forces analysis of The Lucent Accounting Scandal Case Analysis are provided as follows;
• Usage of strong international brand name position and financial resources in broadening towards prospective markets.
• Distinct brand experience could assist the company to much better position itself in new markets.
• Resistance in growth in the possible global markets motivating diversity.
• High costs restricts the expansion in numerous Asian and African nations with low per capita income.
• Strong brand recognition, non-traditional methods of marketing and the special brand experience could be made use of to minimize the hazard from possible consumers.
• Stringent look policies might caused the consumer shift towards Victoria with high social responsibility.
• Restricted target markets might caused a decline in the overall market share of the business.
These techniques could 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 The Lucent Accounting Scandal Case Analysis might be conducted to assess the availability of funds to the company that might be utilized in growth towards worldwide markets. The monetary position of the company might be evaluated by using the information given in the case Exhibition 1. The ratios that might be thought about in monetary efficiency analysis are given in the Table 1 listed below;

From the above Table 1, it could be seen that the company has a reasonable financial efficiency with a ROE of 7.9% and a high sales development of 18.4%. A 4.3% net profit margin does not seems to be possible and the business must put efforts in increasing its profits along with reducing its functional costs to increase its profit margins.

Porter's 5 Forces analysis of The Lucent Accounting Scandal Case Solution

Segmentation

Many of the business's Brick and Mortar shops are situated in US consisting of above 500 stores in almost each of the state of US. The business has also an international existence in 8 various countries with its highest number of stores located in United Kingdom i.e. 21. The companyhas a total of 54 stores in global markets that is probably the 10% of its stores in the United States.

Targeting

The business targets its clothes brand name to the young, high and good-looking teenagers and kids that are thought about to be cool. This targeting policy is responsible for different differences in the company connected to its competitors. For example, the business hires excellent looking men and women for its stores and follows a rigorous look policy to keep destination of good-looking individuals towards its shops and provide a special brand experience.

Positioning

The business has actually placed its brand name as a high-end brand targeting just a particular market section. The business 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 personalities in society. This market position draws in various elite people towards the brand however it harms the business's position in different communities focused at the equality in society.

External Analysis

Competitor Analysis

Porter's 5 Forces analysis of The Lucent Accounting Scandal Case Analysis deals with a lot of competitors in the market with the existence of different number of competitors in the market. Gap is likewise thought about to be a potential rival in regional as well as in worldwide; markets as the business is considering to shift in the international markets.

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