Porter's 5 Forces analysis of Mv Agusta: Motorcycle Art Case Solution

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Porter's 5 Forces analysis of Mv Agusta: Motorcycle Art Case Study Solution

Porter's 5 Forces AnalysisA Porter's 5 Forces analysis of Mv Agusta: Motorcycle Art Case Help could be performed to design various techniques using the strengths of the company to get opportunities, get rid of weak points and to lower the hazards. It might also be utilized to assess that how particular weaknesses resist particular opportunities and increase the dangers. The techniques prepared using the Porter's 5 Forces analysis of Mv Agusta: Motorcycle Art Case Solution are given as follows;
• Usage of strong worldwide brand position and funds in expanding towards potential markets.
• Unique brand experience could help out the business to much better position itself in brand-new markets.
• Resistance in expansion in the possible international markets encouraging diversity.
• High rates restricts the growth in different Asian and African countries with low per capita income.
• Strong brand name recognition, non-traditional methods of marketing and the unique brand name experience might be used to minimize the hazard from possible clients.
• Stringent look policies might resulted in the consumer shift towards Victoria with high social duty.
• Minimal target audience could resulted in a decline in the total market share of the business.
These methods could assist 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 Mv Agusta: Motorcycle Art Case Analysis might be performed to assess the availability of financial resources to the business that might be made use of in growth towards worldwide markets. The financial position of the company could be examined by using the data given in the case Exhibit 1. The ratios that might be thought about in monetary performance analysis are given in the Table 1 below;

From the above Table 1, it could be seen that the company has a sensible financial performance with a ROE of 7.9% and a high sales development of 18.4%. Although, a 4.3% net profit margin does not seems to be potential and the business must put efforts in increasing its earnings in addition to lowering its functional expenses to increase its profit margins.

Porter's 5 Forces analysis of Mv Agusta: Motorcycle Art Case Analysis

Segmentation

The segmentation analysis includes the analysis of numerous service sectors of the business in domestic and the international, markets. The majority of the business's Brick and Mortar stores are located in United States including above 500 stores in practically each of the state of US. The business has likewise a global existence in 8 various countries with its greatest number of stores located in United Kingdom i.e. 21. The companyhas a total of 54 shops in international markets that is probably the 10% of its stores in the US. It suggests that bulk of the incomes of the business come from the local markets. The company is considering to broaden its shops into 7 more European and Asian countries. A chart showing the presence of the business in various worldwide markets is given in the Appendix 2.

Targeting


The business targets its clothes brand name to the young, high and attractive teens and kids that are thought about to be cool. This targeting policy is responsible for numerous distinctions in the business connected to its rivals. The company hires excellent looking males and ladies for its shops and follows a stringent look policy to keep destination of good-looking individuals towards its shops and offer a special brand experience.

Positioning


The company has placed its brand name as a high-end brand targeting only a particular market segment. The business with its non-traditional ways of marketing through models and representatives posters its brand name image as a luxury clothing brand name targeted to the cool and attractive personalities in society. Although, this market position draws in various elite people towards the brand name but it harms the company's position in numerous communities focused at the equality in society.

External Analysis

Competitor Analysis


Porter's 5 Forces analysis of Mv Agusta: Motorcycle Art Case Analysis deals with a lot of competition in the market with the existence of different number of rivals in the market. Space is likewise considered to be a potential competitor in local as well as in global; markets as the business is thinking about to move in the international markets.



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