Porter's 5 Forces analysis of Smart Communications Inc (A) Case Solution

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Porter's 5 Forces analysis of Smart Communications Inc (A) Case Study Analysis

A Porter's 5 Forces analysis of Smart Communications Inc (A) Case Solution might be performed to develop different strategies using the strengths of the business to get opportunities, overcome weak points and to decrease the threats. It could likewise be used to examine that how certain weaknesses resist particular opportunities and increase the threats. The techniques drafted using the Porter's 5 Forces analysis of Smart Communications Inc (A) Case Analysis are offered as follows;
• Usage of strong international brand name position and funds in broadening towards potential markets.
• Distinct brand name experience could help out the business to better position itself in new markets.
• Resistance in expansion in the possible international markets encouraging diversity.
• High prices limits the growth in numerous Asian and African countries with low per capita income.
• Strong brand acknowledgment, non-traditional methods of marketing and the special brand name experience could be utilized to lower the risk from prospective customers.
• Rigorous look policies might led to the customer shift towards Victoria with high social obligation.
• Restricted target audience could resulted in a decline in the overall market share of the business.
These methods might 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 Smart Communications Inc (A) Case Solution might be carried out to evaluate the availability of financial resources to the business that might be used in growth towards international markets. The financial position of the company might be evaluated by utilizing the information given in the case Exhibit 1. The ratios that might be considered in monetary performance analysis are given in the Table 1 below;

From the above Table 1, it might be seen that the company has a reasonable financial performance 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 potential and the company needs to put efforts in increasing its revenues along with decreasing its functional costs to increase its profit margins.

Porter's 5 Forces analysis of Smart Communications Inc (A) Case Analysis

Segmentation

Most 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 company has likewise a worldwide existence in 8 different countries with its highest number of shops situated in United Kingdom i.e. 21. The companyhas an overall of 54 stores in global markets that is probably the 10% of its stores in the US.

Targeting

The business targets its clothing brand name to the young, high and attractive teens and kids that are considered to be cool. This targeting policy is accountable for various differences in the business connected to its rivals. For example, the company hires great looking men and women for its shops and follows a strict look policy to maintain attraction of attractive people towards its shops and supply a distinct brand name experience.

Positioning

The company has placed its brand name as a high-end brand targeting just a particular market section. The company with its non-traditional methods of marketing through designs and representatives posters its brand image as a luxury clothing brand targeted to the cool and good-looking characters in society. Although, this market position draws in numerous elite individuals towards the brand however it hurts the business's position in different neighborhoods focused at the equality in society.

External Analysis

Competitor Analysis

Porter's 5 Forces analysis of Smart Communications Inc (A) Case Solution faces a lot of competitors in the market with the presence of various number of competitors in the market. Gap is likewise considered to be a potential competitor in local as well as in global; markets as the company is thinking about to shift in the worldwide markets.

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