THE TWENTY-FIRST'S SECOND DECADE-WHITHER THE BEAUTY INDUSTRY?

Author
Marilyn L. Taylor, University of Missouri at Kansas City
Region
North America
Topic
Operations
Strategy & General Management
Length
49 pages
Keywords
Industry Analysis
mergers and acquisition
International Business
cosmetics
Student Price
$4.00
Target Audience
Graduate Students
Undergraduate Students

This industry note briefly traces the history of the beauty industry; overviews the world market through the industry’s four segments (bath and shower, hand & body, cosmetics, and fragrances), summarizes developments in regional and country markets by segment, identifies the major competitors in the four segments, briefly touches on the suppliers and buyers for the segments, and concludes with a look at the regulations affecting the industry.  Appendices provide profiles for the ten major competitors in the market --- Avon, Beiersdorf, Coty, Estee Lauder, Kao, L’Oreal, Procter and Gamble (P&G), Sara Lee, Shiseido, and Unilever.  Each profile provides information regarding the company’s evolution, current product lines, country markets, and financial statements.

Learning Outcomes
  1. Undertake industry level analysis using concepts such as the OTs in SWOTs, PEST (or variations such as PESTEL or PEST+G), and Five Forces.  
  2. Develop an understanding of the competitive weapons that companies can utilize as components of their overall company strategies.
  3. Construct one or more Strategic Groups Maps.
  4. Analyze a set of companies as potential merger and acquisition (M&A) partners.
  5. Make one or more M&A offers from the perspective of one of the companies including consideration of:
    • The financial offer
    • Organizational and operational issues
    • Product line synergies.