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Journal cover: Industrial Management & Data Systems

Industrial Management & Data Systems

ISSN: 0263-5577

Online from: 1970

Subject Area: Information and Knowledge Management

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Comparative innovative business strategies of major players in cosmetic industry


Document Information:
Title:Comparative innovative business strategies of major players in cosmetic industry
Author(s):Sameer Kumar, (College of Business, University of St Thomas, Minneapolis, Minnesota, USA), Cindy Massie, (College of Business, University of St Thomas, Minneapolis, Minnesota, USA), Michelle D. Dumonceaux, (College of Business, University of St Thomas, Minneapolis, Minnesota, USA)
Citation:Sameer Kumar, Cindy Massie, Michelle D. Dumonceaux, (2006) "Comparative innovative business strategies of major players in cosmetic industry", Industrial Management & Data Systems, Vol. 106 Iss: 3, pp.285 - 306
Keywords:Corporate strategy, Cosmetics, Product innovation, SWOT analysis
Article type:Research paper
DOI:10.1108/02635570610653461 (Permanent URL)
Publisher:Emerald Group Publishing Limited
Abstract:

Purpose – The cosmetic industry is a very lucrative, innovative, and fast paced industry where product innovation is the key to success. The purpose of this paper is to present a detailed analytical (qualitative) study of cosmetic industry in the global marketplace with a focus on the four market leaders in this industry relative to their business and innovation strategies.

Design/methodology/approach – Business analyses include Strengths, Weaknesses, Opportunities and Threats (SWOT), Porter's value chain and five forces, and financial applied to the four industry leaders.

Findings – Each of these cosmetic companies is unique. They each offer something different to the industry; selling method, marketing strategy, product line, and distribution channel.

Practical implications – The industry trends indicate that the future of cosmetics may move towards more joint ventures between drug companies, cosmetic companies and nutritional/food companies as cosmetic companies look for new ways to be innovative.

Originality/value – The research provides an in-depth business analyses of cosmetic industry using SWOT, Porter's value chain and five forces and financial with results obtained that are generalizable to the entire cosmetic industry. Projections on the future of cosmetic industry are also presented.



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