Summary of Industry Analysis Vera Bradley Company EXTERNAL ANALYSIS Industry Analysis 1. Industry Economic Features— Market Size: $503.0 - $509.5 million annual revenues; $54,938 thousand total merchandise. 2. Industry Competitive Forces— 1. Competitive rivalry: National brands such as; Fossil, Chanel, Guess, and Marc Jacobs hand bag manufactures. Largest markets are United States 36% of sales, Europe 21%, Japan 16% in China 11% of industrial sales. 2. Market growth rate: 2016 United States growth -1.26% Market has matured and due to competitive handbag markets this industry has stalled. Globally market is not yet saturated, expansion is still possible. Growing demand in China and other emerging Asian markets such as India rapidly increasing …show more content…
Weaknesses - company focuses on Japan and US, no globalization goal, slow growth revenue, weak brand image, too many distribution channels, brand is not distributed through luxury department stores. 3. Opportunities- expand distribution channels, customize products from traditional patterns to culture patterns to meet local demand, improve product demand, product line for career driven women, focus more resources on online sales which is continuing to grow on average of 28% per year. 4. Threats- less disposable income during recession, expose Asian markets and competition with other brands. 5. Financial analysis -net revenue grew in 2013 and declined 2014 to 2015. Net revenue declined approximately 15% in 2015. The main reason causing this decline is the increase in fixed assets over one year, meaning, the company’s assets were just sitting idle. After ROA declined in 2015 (company is not profitable) it does appear that it is increasing by 4% in 2016 due to rebranding of products. 10. Cost Control and Pricing— Overall company is not competitive other than price of the products. Michael Kors products has the highest sales among all the brands. Vera Bradley is doing majority businesses in North America, Europe and
From 2010 to 2011 there has been a 23.8% increase in gross fixed assets value. The raised funds through long term debts would have been used to enhance assets base of Speedster. This is a very positive sigh of future profitability and capacity of the company. Higher assets should be able to generate more cash inflow...
can expand through marketing ideas and ways the company can save money by not stocking up on as
• An analysis of Caterpillar’s 2015 Income Statement revealed a 15.3% decrease in sales on machinery, energy, and transportation between 2014 and 2015. While the company experienced a nearly negligible change (-1.05%) in operational revenues from 2013 to 2014, they experienced a very severe decline between 2014 and 2015. Operational revenues dropped from $52,142 million to $44,147 million, showing a deterioration from previous years.
The industry market size in the US is estimated at $303 billion in fiscal 2014, $221 billion attributed to consumer market (private home owners) and the remaining to the professional market
o Shoes and clothing - $125 billion. o Electronics and appliances - $85 billion. o
More new products need to be introduced and research needs to be done to find out which products will be most popular and profitable.
Strengths: low price, strong brand name, excellent merchandise, exceptional employees, huge membership base, economies of scale, efficient distribution and operation.
Other competitive activities included sales promotion, advertising, and product differentiation. Larger companies have a much greater financial ability to be able to invest more into advertising than a new business starting out would be able to. Shelf space and competitive pricing were two major issues that affected sales. Because they are already recognizable brands, they can afford to purchase the best shelf space. Consumers will see their products before noticing other, not so well known products.
The first analysis will be on Verizon. The current ratio and the debt to equity ratio both improved in 2006 when compared to 2005. However, the net profit margin dropped from 9.8% to 7.0%. What does this tell us as investors...
1) As companies trying to sell consumers stuff, they are not competing with them, only other companies,
Our largest opportunity for growth lies in the emerging economies of China, India, and Thailand. A modest growth in stores in the US, and Europe (2%), while increasing efforts to expand by 10% a year in China, Thailand, and India while offering new menu items in the stores we currently have in place is projected to increase our revenues from $14.9 billion per year to $26.46 billion per year over the next 4 years. This plan will increase our indirect labor force, by adding select marketing teams, commodity managers, and a VP of construction.
Weaknesses: Most of the revenues of the company were generated outside the Israel from Europe and CIS countries, which could subject the company to macro-economic instabilities. Opportunities: Teva had to compete with four big pharmaceutical firms so global consolidation could strengthen its position.
Pricing. Our product is priced lower than our competitors in our industry. Even though our competitors have a different kind of product compared to us.
There is also a need of expansion in other segments such as children and men, size plus, sports items, maternity and more mature people segments. Although, they also offer these segments but we think, strengthening them can bring sale increase opportunity as today for example there are more women engaging in sport , so supplying large range of working outs items at low price would be profitable for the
Competitors. Rosewood is competing with corporate branded properties and individually branded properties. Main competitors are: