Porter's 5 Forces analysis of Rio Tinto Iron Ore: Challenges Of Globalization In The Mining Industry Case Analysis

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Porter's 5 Forces analysis of Rio Tinto Iron Ore: Challenges Of Globalization In The Mining Industry Case Study Solution

Porter's 5 Forces AnalysisA Porter's 5 Forces analysis of Rio Tinto Iron Ore: Challenges Of Globalization In The Mining Industry Case Help might be performed to design numerous methods utilizing the strengths of the company to get opportunities, get rid of weak points and to decrease the risks. It might also be used to examine that how particular weak points resist specific chances and increase the threats. The strategies prepared using the Porter's 5 Forces analysis of Rio Tinto Iron Ore: Challenges Of Globalization In The Mining Industry Case Solution are provided as follows;
• Usage of strong international brand position and funds in expanding towards possible markets.
• Special brand name experience might assist the business to better position itself in brand-new markets.
• Resistance in growth in the potential global markets motivating diversity.
• High prices limits the growth in various Asian and African nations with low per capita income.
• Strong brand acknowledgment, non-traditional methods of marketing and the unique brand experience could be utilized to decrease the hazard from prospective clients.
• Rigorous appearance policies might caused the consumer shift towards Victoria with high social duty.
• Restricted target markets might led to a decline in the overall market share of the business.
These strategies might assist the business 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 Rio Tinto Iron Ore: Challenges Of Globalization In The Mining Industry Case Analysis might be performed to assess the accessibility of funds to the business that might be utilized in growth towards worldwide markets. The financial position of the business could be examined by utilizing the data given up the case Exhibit 1. The ratios that could be considered in financial performance analysis are given in the Table 1 listed below;

From the above Table 1, it could be seen that the business has a sensible monetary efficiency 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 possible and the company must put efforts in increasing its revenues along with decreasing its functional expenditures to increase its earnings margins.

Porter's 5 Forces analysis of Rio Tinto Iron Ore: Challenges Of Globalization In The Mining Industry Case Analysis

Segmentation

The division analysis consists of the analysis of various company sectors of the company in domestic and the worldwide, markets. The majority of the company's Physical stores are located in US consisting of above 500 shops in practically each of the state of US. The business has likewise an international existence in 8 various nations with its greatest number of stores located in United Kingdom i.e. 21. The companyhas a total of 54 shops in worldwide markets that is most likely the 10% of its stores in the United States. It implies that majority of the earnings of the business come from the local markets. Furthermore, the business is considering to expand its shops into 7 more European and Asian nations. A chart revealing the existence of the company in various international markets is given up the Appendix 2.

Targeting


The company targets its clothes brand name to the young, high and good-looking teenagers and kids that are considered to be cool. This targeting policy is accountable for various differences in the company related to its rivals. For example, the business employs great looking males and females for its stores and follows a strict look policy to preserve destination of attractive individuals towards its stores and supply a distinct brand experience.

Positioning


The business has actually placed its brand name as a high-end brand targeting just a specific market section. The business with its non-traditional ways of marketing through designs and agents posters its brand image as a high-end clothing brand name targeted to the cool and attractive characters in society. This market position attracts different elite individuals towards the brand name however it harms the company's position in numerous neighborhoods focused at the equality in society.

External Analysis

Competitor Analysis


Porter's 5 Forces analysis of Rio Tinto Iron Ore: Challenges Of Globalization In The Mining Industry Case Help faces a great deal of competitors in the market with the presence of various number of competitors in the market. A chart showing the close rivals in addition to their qualities and the marketing method is given up. it might be seen that the American Eagle Outfitters is considered to be the strongest rivals for company with its marketing technique associated to the tv shows. Furthermore, Space is likewise considered to be a prospective competitor in local as well as in global; markets as the business is considering to shift in the worldwide markets. Together with it, Rio Tinto Iron Ore: Challenges Of Globalization In The Mining Industry Case Study Analysis. with its flexible pricing technique and the Victoria's Street with its strong social status position an extreme danger to the existing market share of the Porter's 5 Forces analysis of Rio Tinto Iron Ore: Challenges Of Globalization In The Mining Industry Case Analysis.



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