Strategy includes actions employed at all levels of the company, to face competition. It thus reveals strategic visions, action plans and decisions that will have a direct impact on the profit of the company in its environment.
This strategy also applies to different areas of business. We present a case study of Shiseido and its main strategic business areas, including cosmetics and hygiene. Shiseido is one of the largest cosmetic companies.
It is very prominently present in the Japanese market where domestic sales are very high, and where its brand is strong. Essentially it applies a development strategy which is termed as internationalization. For the company, growth is a key success factor, and this has accelerated its expansion into the Chinese market.
Its strategies are based primarily on a multi-brand strategy, innovation, and acquisitions. Through the SWOT analysis, we position Shiseido relative to its environment, and we propose strategic recommendations.
Some of the strengths of the brand are that it holds a very strong position in the cosmetics industry in Asia especially in Japan. Shiseido is the second leader in the market for "Cosmetics and toiletries" in Japan and occupies the third place in the World Industry.
The brand is present in over 70 countries ranging across the United States, Europe and Asia.
Tags: Shiseido in Japan, definition of strategy, SWOT analysis of the brand Shiseido
[...] To remain competitive and be even stronger, it must make concessions. Expanding the Chinese market and attaining good position in the Japanese market will allow it to have a competitive advantage. The Asian market is booming and Shiseido is not alone in wanting to be leader. But it's just not that. The group must stand firm by investing more in innovation. It should focus on its brands which generate the most products. Finally, the Shiseido group should maintain its brand image and reputation around the world. [...]
[...] SWOT analysis: the Shiseido case Overview Introduction I. SWOT Analysis A. Forces B. Weaknesses C. Opportunities D. Threats II. Strategic recommendations Conclusion Bibliography Introduction The strategy includes actions used at all levels of the company in order to face competition. It thus reveals strategic visions, action plans, decisions that will have a direct impact on profit of the company in its environment. This strategy also applies to different areas of the company. In the case of Shiseido, its main strategic business areas are cosmetics and hygiene. [...]
[...] in Japan, as the country is its main market. • Invest more in R&D to offer innovations to market. This is essential to success in this market. • Trying to sell some brands that do not achieve significant sales and focus on star brands. Their brand portfolio is therefore a weakness, as it is poorly managed. There are a lot of SBUs in "dilemma" as deodorant or bath products and shower, with the market recording low growth. • Offer a range of products for young adolescents. [...]
[...] Shiseido, as stated previously, made its biggest turnover in Japan, and is so dependent on the economic growth of Japan. • The rejection of the Japanese products in China due to their shared history (War) that can affect sales of Shiseido. • The market for counterfeit or fake Shiseido products that are sold at low prices has an impact on the Shiseido brand. • 2006 acquisition of No cosmetics in Japan by the company Kao Corp. tilting the market leader in Japan. II. [...]
[...] • Several plants found in the world: three in United States, three in France and five in Asia. B. Weaknesses • Difference in positioning strategy in Japan and abroad: Prestige at the International level, mass market in Japan • Shiseido depends mainly on the Japanese market where the bulk of its turnover is achieved of sales) • Investment in other markets where the company is not an expert such as pharmaceuticals, the "Health & beauty food" or the opening of French restaurants in Japan. [...]
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