Porter's 5 Forces analysis of Tomtoms Initial Public Offering: Dud Or Nugget Case Analysis

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Porter's 5 Forces analysis of Tomtoms Initial Public Offering: Dud Or Nugget Case Study Solution

A Porter's 5 Forces analysis of Tomtoms Initial Public Offering: Dud Or Nugget Case Analysis might be carried out to design various techniques using the strengths of the company to get opportunities, conquer weak points and to decrease the risks. It could also be utilized to evaluate that how particular weaknesses resist specific chances and increase the dangers. The techniques prepared utilizing the Porter's 5 Forces analysis of Tomtoms Initial Public Offering: Dud Or Nugget Case Help are given as follows;
• Utilization of strong international brand position and funds in broadening towards possible markets.
• Unique brand name experience could assist the business to better position itself in new markets.
• Resistance in growth in the potential global markets encouraging diversity.
• High costs limits the growth in different Asian and African nations with low per capita earnings.
• Strong brand acknowledgment, non-traditional ways of marketing and the unique brand experience might be used to minimize the threat from possible consumers.
• Stringent look policies could resulted in the customer shift towards Victoria with high social duty.
• Limited target audience might resulted in a decline in the total market share of the company.
These techniques could assist the company to improvise its market position and be at the leading position in the market.

Financial Analysis

Monetary analysis for Porter's 5 Forces analysis of Tomtoms Initial Public Offering: Dud Or Nugget Case Analysis could be performed to assess the schedule of funds to the business that could be made use of in growth towards international markets. The financial position of the business could be assessed by using the information given in the case Exhibition 1. The ratios that might be thought about 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 sensible financial performance with a ROE of 7.9% and a high sales growth of 18.4%. A 4.3% net profit margin does not seems to be prospective and the company should put efforts in increasing its incomes along with lowering its operational expenditures to increase its profit margins.

Porter's 5 Forces analysis of Tomtoms Initial Public Offering: Dud Or Nugget Case Help

Segmentation

The segmentation analysis consists of the analysis of various company sections of the business in domestic and the international, markets. Most of the business's Traditional stores lie in US including above 500 shops in almost each of the state of US. However, the company has likewise a worldwide existence in 8 various countries with its greatest number of shops located in United Kingdom i.e. 21. The companyhas a total of 54 stores in international markets that is probably the 10% of its shops in the US. It suggests that majority of the revenues of the business originated from the regional markets. Furthermore, the company is thinking about to broaden its shops into 7 more European and Asian nations. A chart showing the existence of the company in various global markets is given in the Appendix 2.

Targeting

The company targets its clothing brand to the young, tall and good-looking teens and kids that are thought about to be cool. This targeting policy is accountable for various distinctions in the business related to its competitors. For instance, the business employs great looking men and women for its stores and follows a strict look policy to keep tourist attraction of attractive individuals towards its shops and offer a distinct brand experience.

Positioning

The business has actually placed its brand as a high-end brand name targeting only a particular market sector. The business with its non-traditional methods of marketing through designs and representatives posters its brand image as a high-end clothes brand targeted to the cool and good-looking characters in society. This market position attracts different elite individuals towards the brand but it hurts the business's position in various communities focused at the equality in society.

External Analysis

Competitor Analysis

Porter's 5 Forces analysis of Tomtoms Initial Public Offering: Dud Or Nugget Case Solution faces a lot of competitors in the market with the presence of various number of competitors in the market. Gap is likewise thought about to be a prospective rival in local as well as in international; markets as the business is considering to move in the international markets.

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