INDUSTRY & COMPANY
ANALYSIS
Cosmetics Industry
Grobalization & Localization
Technology-intensive Industry
Higher Value-added Business
Cosmetics Market
Total Market : $ 124.539 billion
<그래프>
L’OREAL
Number one company in cosmetics and beauty industry
Founded by Eugène Schueller in 1907
Markets over 500 brands and more than 2,000 products
Hair color, permanents
intense competition brought about by globalization, the Hong Kong economy has been moving up the value-added chain, shifting towards higher value-added services and more knowledge-based activities. At the same time, the economic and financial integration between Hong Kong and the Mainland has been going from strength to strength, creating abundant business opportunities for a wide range of servic
Long-term paradigm shift in business
Weakening growth potential
by just reinforcing the existing business
Selecting and concentrating
on a higher value-added business
Keeping diverse businesses
led to
failure of fostering growth engine intensively
New Business models
allow to overcome recession
Continuing unwinnable competition
led to
mergers and acquisitions
-중국 진출 History
★부진의 원인 1: ebay의 중국시장 실패의 이유는 Dotcom Bubble 당시 기업 도산 이유와 흡사함.
Controllable
Uncontrollable
Inadequate customer service
Inadequate infrastructure to support
Website design
Lower customer confidence
Lack of customer loyalty
Distrust
(Source : E1)
Intense competition
케이스 요약
-문제점 분석
Value-added products
are not differentiated No means other than price
competition
The transition is need to high value-added products
In the iron ore market which the main raw material for
steel industry, 3 largest
companies (BHP Billiton, Rio tinto, vale) accounted for
70% of the supply, but To