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

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

Porter's 5 Forces AnalysisA Porter's 5 Forces analysis of Smart Communications Inc (B) Case Help might be conducted to design various methods using the strengths of the business to obtain chances, get rid of weaknesses and to lower the threats. It could also be used to assess that how certain weaknesses resist specific opportunities and increase the hazards. The methods drafted utilizing the Porter's 5 Forces analysis of Smart Communications Inc (B) Case Help are given as follows;
• Utilization of strong international brand name position and funds in expanding towards potential markets.
• Unique brand experience could help out the company to much better position itself in brand-new markets.
• Resistance in growth in the possible global markets encouraging diversity.
• High costs restricts the growth in various Asian and African countries with low per capita income.
• Strong brand recognition, non-traditional methods of marketing and the distinct brand experience might be used to decrease the danger from prospective clients.
• Strict look policies could resulted in the customer shift towards Victoria with high social duty.
• Restricted target markets could caused a decrease in the overall market share of the business.
These strategies 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 Smart Communications Inc (B) Case Solution might be conducted to assess the accessibility of funds to the business that could be made use of in growth towards worldwide markets. The financial position of the company might be evaluated by using the information given in the case Display 1. The ratios that might be considered in monetary performance analysis are given up the Table 1 listed below;

From the above Table 1, it might be seen that the company has a reasonable monetary 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 should put efforts in increasing its revenues along with decreasing its functional expenses to increase its profit margins.

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

Segmentation

The division analysis includes the analysis of numerous business segments of the company in domestic and the international, markets. Most of the business's Traditional stores are located in US including above 500 shops in practically each of the state of United States. The company has also an international 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. It indicates that majority of the earnings of the business originated from the local markets. Furthermore, the business is thinking about to expand its stores into 7 more European and Asian nations. A chart revealing the existence of the business in different international markets is given in the Appendix 2.

Targeting


The business targets its clothing brand to the young, tall and good-looking teens and kids that are considered to be cool. This targeting policy is responsible for numerous differences in the business related to its rivals. For example, the business hires good looking males and females for its stores and follows a strict appearance policy to keep attraction of attractive individuals towards its shops and offer an unique brand experience.

Positioning


The business has positioned its brand name as a high-end brand name targeting only a specific market section. The company with its non-traditional ways of marketing through models and agents posters its brand image as a high-end clothes brand name targeted to the cool and attractive personalities in society. This market position brings in different elite individuals towards the brand name 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 Smart Communications Inc (B) Case Solution deals with a lot of competitors in the market with the presence of different number of rivals in the market. Space is also considered to be a potential competitor in local as well as in global; markets as the business is thinking about to shift in the international markets.



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