Custom essays on Company Analysis: Leighton Company Analysis Essay

Leighton Company is one of the most successful Australian companies that operates internationally in different industries, including building and property, engineering and infrastructure and others. In actuality, the company attempts to improve its marketing position and expand its market share through entering new markets. In such a situation, it is very important to conduct the company analysis to understand its current position in the market and its prospects.
First of all, it is necessary to define the equity value model used for the company analysis. In this regard, the most effective equity valuation model is the guideline companies method. In fact, this method implies the comparison of prices of rival companies to prices of the target company. On the ground of this comparison, it is possible to make a conclusion on the current competitive position of the company and its equity value in the market. At this point, it is worth mentioning the fact that the guideline companies model is useful and effective for the analysis of Leighton company because this company operates in different industries and in different countries. Therefore, the guideline companies method will help to compare the current position and policies of the company to those of its major rivals.
The comparison of prices of Leighton Company and its major rivals reveals the fact that the company holds a stable marketing position because its prices match prices of its major rivals. At the same time, certain differences were revealed in the course of the analysis. To put it more precisely, companies operating in developed countries, such as the US, Canada and some countries of the EU have a bit higher prices compared to Leighton Company. On the other hand, companies based in developing countries, such as Tata Group, based in India, are in a different position compared to Leighton Company. At any rate, companies based in developing countries offer their products at lower prices compared to Leighton Company (Howard, 118). Therefore, companies based in developing countries have more competitive prices compared to Leighton Company but the quality of their products is still under a question, whereas companies based in developed countries conduct similar pricing policies or have the higher prices.
Consequently, it is possible to estimate that Leighton Company conducts a reasonable marketing strategy and pricing policy, which allow the company to maintain a stable position in the international market. At the same time, the company should come prepared to the growing competition from the part of developing countries or, to put it more precisely, companies based in developing countries (Howard, 126). They attempt to close the gap in the quality of their products compared to products of Leighton Company, whereas their prices are lower compared to Leighton company. Nevertheless, the current marketing position of the company is stable and, what is more, the company keeps growing steadily.
Alternatively, it is possible to use the ECM model, which helps to define the intrinsic value of the Leighton Company. According to this model, the intrinsic value of the company keeps growing. Within the last year the intrinsic value of the Leighton Company increased by 3% that is a substantial growth, taking into account the current competitive environment and economic development at large. In the time of the economic recession the growth of the intrinsic value of the company shows its huge potential for the further growth and development. On the other hand, it is important to take into consideration the fact that the company needs to expand its international market share. In the contemporary business environment companies are forced to expand their business internationally if they want to keep progressing in a long-run perspective (Russel, 149). In terms of the ECM model, the current position of the Leighton Company is stable and the company grows steadily. In such a situation, the company needs to focus on the maximization of the effectiveness of employees performance to improve its marketing performance consistently. In such a situation, the Leighton Company should pay a particular attention to the development of innovations and their introduction as well as the introduction of new technologies, which can facilitate the work of employees and increase the effectiveness of their work.
Thus, taking into account all above mentioned, it is important to place emphasis on the fact that Leighton Company is a successful company operating internationally in different industries. The company analysis shows that Leighton Company holds a stable position in the international market and attempts to expand its market share. Its competitive position is good although companies based in developing countries increase their pressure and rivalry. Nevertheless, in spite of the growing competition, Leighton Company keeps progressing. In such a situation, the company should continues its strategy of the international market expansion and it should pay a particular attention to the introduction of innovations which can accelerate the business development of the Leighton Company.

 

 

 

References
Howard, G. New Economic Trends. New York: Random House, 2004.
Russel, G. Lessons from Best Run American Companies. New York: Routledge, 2008.



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