An Analysis of the Fast Moving Consumer Product Industry and a Review of Kao Corporation

An Analysis of the Fast Moving Consumer Product Industry and a Review of Kao Corporation

Executive Summary

In this project, I have chosen the Fast Moving Consumer Product industry as the topic of study. First of all we will take a brief look at how the industry started in the late 19th century as soap making companies and slowly evolving into some of the most successful multidomestic company of today. Following we will have insight on the industry’s prominent characteristics and highlight some of the major players. We will also get an idea of the attractiveness of the industry through the use of Porter’s 5 forces industrial analysis.

Included in this project is an in-depth review of Kao Corporation, Japan. Kao Corporation is one of the major players in the industry. Here we will take a look at how the Japanese based company employs strategies to reduce cost and at the same time differentiate its product from its competitors to gain competitive advantage. We will also examine some of the key financial ratios to aid us in identifying some of the company’s strength and weaknesses. Then a SWOT analysis is carried out on the company. From the SWOT analysis we can formulate suitable strategies in order to improve the performance of the company. By closely examining the company’s internal environment to better understand the company’s capabilities and limitations and then analysing the changes in the external environment that could affect the company favourably or adversely, appropriate strategies can be formed in order to ensure high performance of the company. Then finally we will look at other possible recommendation, which I believe would help improve the company’s performance in the competitive fast moving consumer products industry.

Fast Moving Consumer Product Industrial Brief

Fast Moving Consumer Product are products that consumer would use regularly. The product line of Fast Moving Consumer Products encompasses a wide range of products such as shampoo, body foam and facial wash. These products are classified as fast moving due to the nature of its usage and durability. While shampoos are non-perishables, the consumer would eventually finish utilizing it and would require to purchase another bottle of shampoo. Therefore, unlike products like television and radios which consumers would only buy once in a blue moon, Fast Moving Consumer Products are bought constantly from time to time by consumers.

The Fast Moving Consumer Product Industry has evolving since the 19th century.