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International business strategy and organisation
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Introduction to your company and industry
An Australian based cosmetics company in which began in 1995, the brand Napoleon Perdis Cosmetics now operates 72 concept stores across Australia and New Zealand with its cosmetics sold from 4,500 locations. Napoleon Perdis has also expanded its operations into the United States with 2 concept stores, followed by 5 different independent retailers offering the Napoleon cosmetics line across 500 stores.
Napoleon Perdis not only offers a wide variety of products in relation to cosmetics, with the provision of a Makeup Artists and Academy, but have also recently expanded their brand into new industries such as Fashion, Home ware and accessories.
As Napoleon wishes to grow and expand their business and brand, an appropriate economy for the business to expand to is into the Canadian cosmetics industry, mainly focusing on entering the industry through department stores within the Metropolitan areas such as Vancouver, Toronto and Montreal.
ECONOMIC & FINANCIAL ENVRIONMENT ANALYSIS:
With a mixed economy and a ranking of the 6th freest type of economy around the world, makes Canada one of the most popular choices for investors to advance into due to its flexible and improved investment and monetary policies, followed by the growth progress and advances of the Canadian government’s expenditure and its supervision.
According to the Heritage organisation’s 2014 Index of Economic freedom assessment, within the Northern American region, Canada has become the freest economy, as shown in their regional ranking for North America.
Free trade and economic integration have been implemented by the Canadian government as it allows the Canadian economy to grow stronger, reduce trade barriers and improv...
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...is closely linked with the population figures across the major cities / metropolitan areas. Thus, Toronto produces the main share of the cosmetics industry profits of 39.5%. Montreal also accounting for 27%, followed by Vancouver with 12.1%.
Napoleon must also be aware of the new emerging trend and preference of natural cosmetic products that have recently taken 4-7% of the cosmetics industry in Canada in the past couple of years. The shift towards natural ingredients within cosmetics that contain vitamins and properties such as palmetto oil and calendula has been due to the increased health benefits, Growing health awareness and praise from consumers and beauty experts, generating curiosity for such cosmetics who share their positive reviews and recommendations. And most recently, this is increasingly occurring online on websites such as BlogSpot and YouTube.
Canada’s ability to maintain a healthy income is important, for without it, Canada’s economy would not be functional. This is where Canada’s three main exports come into play. In 2013, Canada earned 133 billion dollars in exporting Mineral products, 123 billion dollars of that coming from mineral fuels, oils, products of their distillation, bituminous substances, and mineral waxes (Ibid.). With such a booming mineral industry, Canada receives a large income from mining that can be invested in schools, jobs, public projects, and many other important areas . Also, the earnings can be devoted towards small businesses looking to expand by using government funding programs, which helps support and expand Canadian economy (Mentor Works). Overall the money is used for activities that support the Canadian economy and make numerous people’s lives better.
People outside of Canada are baffled at how Canada ended up in such a state of affairs. Canada as a country has a lot going for it. A high GNP, and high per capita income in international terms. It is ranked at the top of the...
Cosmetics: The Lost Years : Notable women who paved the way for today's cosmetic industry.(Annie Turnbo Malone and Madame C.J. Walker)
But today more then even Canadian culture is affected by the American influence. Media, American artists, economic dependence, American propaganda and political pressure from the United States is making Canada too Americanized. All of these factors reflect on the social life of ordinary Canadians threatening the heritage and the traditions that define Canada as independent country. Canada and the United States are the largest trade partners in the world. It is the result of the geographical position of two countries and the free trade between two countries.
The beauty industry has great opportunities for companies wanting to profit from the growth and resiliency of the sector. Finding the right niche is important for becoming visible in the industry. Communicating the unique selling point to the target group will distinguish the company from the competition so it can survive. Also, product sales are needed to earn revenue beyond the service income. The success of Sugar Wax Salon will rely on its ability to offer a beneficial service, create the right products, and promote them to the right people at the right price.
L’Oreal is the largest beauty company in the world and in the past 100 years that it has expanded, it has supplied to 130 countries with offices in 58 different countries. This global company is the number one premium cosmetic product in the world today and has taken the core and beauty of people’s everyday lives since 1907, the beginning of L’Oreal. The superior leadership of a guy named Eugene Schueller started this strategic company with basic products such as hair care and also the first man-made hair color product. Five years later you could find these products in Austria, Italy, and the Netherlands. In 1934 Eugene invented the first mass market of soap less shampoo and this led the success of L’Oreal in the country of Europe which soon recognized them as the leader in body care and hair coloring products. Finally soon after World War II L’Oreal moved into the United States and the company seemed to change. When L’Oreal expanded the competition was more involved and more growth was needed in order for the company to be more successful. With problems like this, the strategy and planning that has been applied in L’Oreal has been huge for the success of the company. L’Oreal realized they needed to expand in other fields of the beauty market and target markets in order to stay alive and successful. This would mean that L’Oreal would need to acquire other companies as part of their expansion and through this they have kept the constancy of the leading company with acquisitions of many small companies. Finally in the 1980s they started their globalization into new markets all around the globe by acquiring new companies that would form the cosmetics that we know today. Although the role of acquisitions has never been the main focus of the company, internal growth and strategy was the number one reason for L’Oreal becoming such a big name. The main strategy was to adopt new companies and expand it from within believing that the brand could be taken globally and benefit their overall brand portfolio. The main role of acquisitions was to increase and lengthen the internal growth rate. L’Oreal started acquiring companies from the beginning of their name. They started with the basics of their own brands such as L’Oreal Professional, L’Oreal Paris, Kerastase, and Club des Createurs de Beaute.
Asian Market- As more students are coming to Canada for their further studies and they have now opportunity to increase more flights to those areas so that they are never short of their flight and all people are able to book with them.
Firstly, the government’s ownership of a selection of products and services in Canada is favourable since it allows for efficiency, a larger surplus and ensures safety. To begin, banks in Canada are a monopolistic competitive market that guarantees efficiency. For example, a recent study on the productivity of banks across the world suggests Canadian governments are benefiting from public monopolies (Allen, "Efficiency and Competition in Canadian Banking"). The United States, along with other countries have a cost-inefficiency measure of ten percent (Allen, "Efficiency and Competition in Canadian Banking"). In contrast, Canada has a much lower cost-inefficiency measure, this signifies bank monopolies in Canada are highly productive (Allen, "Efficiency and Competition in Canadian Banking"). Additionally, these results highlight the roaring successes of the top six banks in
The cosmetic industry in the United States is huge – the sale of skincare, hair care, make-up, perfumes, toiletries, and deodorants generates about $80 billion a year. The vast majority of cosmetic and beauty products are manufactured by a handful of large companies who dominate the industry, and who are more focused on profits than they are on using safer, higher quality ingredients in their products.
Makeup has many different purposes, and large companies like Sephora, divide these makeup products into different categories that concern individual needs. Cosmetic stores like Sephora have specific products for different types of skin. Some for oily, dry, combination, acne prone, or scarred skin. Hundreds of makeup brands specifically design their cosmetics to fulfill the needs of their clients, and a huge need in the world today deals with
After studying the cosmetic market we can identify a series of needs in this market:
Lets start at the beginning Makeup Art Cosmetics or MAC was created in 1984 by two men, Frank Tosken a seasoned makeup artist and photographer and Frank Angelo a successful business owner of a chain of salons in Toronto. They found that cosmetic products that were readily available were not performing well under the intense environment of studio lights & perspiration, had little color payoff, and were constantly having to be touched up. So, they created cosmetic formulas and colors that met these specific needs. By using them backstage on models and performers news traveled fast about how wonderful these products were. At first MAC was only available to the professional makeup artist. Then by word of mouth news spread to the general population and was maid available to the public and in 1994 was purchased by the Estee Lauder who owns many of the world's favorite cosmetic brands. MAC continues to be a testimonial brand of cosmetics, meaning that there is no paid advertising for MAC to promote their traditional product. They rely solely on testimonials and word of mouth advertisement. However you may find that MAC does advertise only one product and that is Viva Glam Lipstick. This is their charity lipstick and it comes in five different shades.
Based on the information provided in the L’Oreal case, Yue Sai struggled to grow and capture additional sales in the high-end Chinese cosmetics sector. In the past, L’Oreal attempted to position Yue Sai in several different ways which can be viewed as detrimental to the company image, showing uncertainty as the company struggles to see which positioning strategy will stick. The most recent positioning presented in the case, which desires to “deliver Yue Sai’s longstanding brand promise that ‘Nobody knows Chinese skin better than Yue Sai’”, allows the highest probability of success for the company capitalizing on countless fresh trends in Chinese cosmetics (6). The positioning statement would reflect this new strategy: “For the modern Chinese woman Yue Sai offers a line of high-end cosmetics. Unlike other high-end cosmetics Yue Sai combines traditional Chinese medicine and sophisticated technology adapted to the unique skin type of Chinese women.” Yue Sai saw reasonable success and hope in the new Vital Essential line which utilized traditional Chinese medicine and, therefore, resulted in above average repeat purchases. Continuing to focus the strategy around traditional Chinese medicine should benefit Yue Sai considerably. Another suggested strategy would be to wholly reposition Yue Sai, however this is ill advised. As stated in the case, Yue Sai tried numerous different positioning strategies, which ultimately provided no clear path strategy. Repositioning would show uncertainty in the company, lowering brand value in the eyes of the consumer.
Cosmetics throughout history have changed drastically throughout the years. From the years 1900-2017 makeup has evolved and has had an impact of the lives of many people through the decades.
Beauty product can be defined as cosmetics; materials and devices made and sold for the purpose of enhancing the physical attractiveness of users or in other words, as any product, especially a cream or lotion, intended to improve a person's appearance . We live in society where people nowadays are very obsessed with beauty and spending so much money on beauty products. Since we were children, the society taught us that beauty is happiness, wellness and everything. This creates a mindset that only attractive physical appearance is beauty, even though ‘beauty’ is a very subjective word where it can apply to many things. It is a rare sight these days to