Porter's 5 Forces analysis of Optimus Portugal: Letting The Kanguru Out Of The Bag (B) Case Solution

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Porter's 5 Forces analysis of Optimus Portugal: Letting The Kanguru Out Of The Bag (B) Case Study Solution

Porter's 5 Forces AnalysisA Porter's 5 Forces analysis of Optimus Portugal: Letting The Kanguru Out Of The Bag (B) Case Analysis could be performed to create different techniques utilizing the strengths of the company to get opportunities, get rid of weak points and to decrease the threats. It could likewise be used to evaluate that how specific weaknesses withstand certain chances and increase the hazards. The techniques prepared utilizing the Porter's 5 Forces analysis of Optimus Portugal: Letting The Kanguru Out Of The Bag (B) Case Solution are offered as follows;
• Utilization of strong international brand name position and financial resources in expanding towards possible markets.
• Distinct brand experience might assist the business to much better position itself in brand-new markets.
• Resistance in expansion in the prospective worldwide markets encouraging diversity.
• High prices limits the expansion in different Asian and African countries with low per capita income.
• Strong brand name recognition, non-traditional methods of marketing and the distinct brand name experience might be used to reduce the threat from potential customers.
• Rigorous appearance policies could resulted in the consumer shift towards Victoria with high social obligation.
• Minimal target audience could caused a decline in the total market share of the company.
These techniques might 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 Optimus Portugal: Letting The Kanguru Out Of The Bag (B) Case Help could be performed to assess the schedule of financial resources to the business that could be made use of in growth towards global markets. The financial position of the business could be evaluated by utilizing the information given up the case Exhibition 1. The ratios that could be considered in financial performance analysis are given up the Table 1 below;

From the above Table 1, it might be seen that the business has an affordable monetary efficiency with a ROE of 7.9% and a high sales growth of 18.4%. A 4.3% net revenue margin does not seems to be potential and the business should put efforts in increasing its revenues along with reducing its functional expenditures to increase its earnings margins.

Porter's 5 Forces analysis of Optimus Portugal: Letting The Kanguru Out Of The Bag (B) Case Analysis

Segmentation

The division analysis consists of the analysis of different service sectors of the company in domestic and the international, markets. Most of the company's Physical stores lie in United States consisting of above 500 stores in nearly each of the state of United States. Nevertheless, the company has likewise a worldwide existence in 8 different nations with its greatest variety of shops located in United Kingdom i.e. 21. The companyhas a total of 54 shops in international markets that is probably the 10% of its shops in the United States. It suggests that bulk of the incomes of the company come from the local markets. The business is thinking about to broaden its stores into 7 more European and Asian countries. A chart revealing the presence of the business in various international markets is given in the Appendix 2.

Targeting


The business targets its clothes brand name to the young, high and good-looking teens and kids that are thought about to be cool. This targeting policy is accountable for numerous distinctions in the company associated with its competitors. The business employs great looking males and women for its stores and follows a stringent look policy to keep attraction of attractive people towards its shops and provide an unique brand experience.

Positioning


The company has actually positioned its brand as a high-end brand name targeting just a particular market section. The business with its non-traditional methods of marketing through designs and representatives posters its brand name image as a luxury clothing brand targeted to the cool and attractive personalities in society. Although, this market position brings in numerous elite individuals towards the brand but it injures the company's position in numerous neighborhoods focused at the equality in society.

External Analysis

Competitor Analysis


Porter's 5 Forces analysis of Optimus Portugal: Letting The Kanguru Out Of The Bag (B) Case Solution faces a lot of competitors in the market with the presence of different number of rivals in the market. Gap is likewise thought about to be a possible rival in regional as well as in worldwide; markets as the company is thinking about to shift in the worldwide markets.



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