Case Study Of Mazal Group

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Mazal Group
Mazal Group was founded in 2007, in Chatsworth, California. They have six main brands and two brands being developed. With their emphasis on cosmetics, they have shown excessive growth in the last few years, opening an average of eight new stores and ten kiosks each year. They have eighty-four employees in their headquarters, up from the initial eight that started in 2007. In 2013, the cosmetics industry in the United States earned revenues of $56.63 billion, with facial skin care representing 27% of the industry (Exhibit 1). CEO, Adi Oded, says, “The cosmetics industry, especially in skincare, is booming. We have all these baby boomers getting older and looking for anti-aging solutions and we are giving them those solutions” (personal communication, June 27, 2014). The cosmetic industry is constantly developing and this in-depth analysis will provide the explanation of why Mazal Group has had so much success in recent years.
Horizontal Boundaries
One way that Mazal has integrated horizontally is through the acquisition of several beauty blogs that are high-ranking on Google search results. Mazal chose this strategy to strengthen its position in the industry. By increasing their product differentiation, they can sell cosmetics and also educate others on why the ingredients used in the products are beneficial. The main benefit of having these beauty blogs is to access new markets. This is another potential channel to sell skincare. The blogs are a completely separate identity from the company’s skincare brands, therefore they can leverage the high rank of the blog on Google so that Mazal can plug their name brands in the blog and convince readers of why they should buy the products, without it seeming as if the blog ...

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