COSMETIC INDUSTRY ANALYSIS

Independent Analysis of the Recent Trends of Competition Rivalry in the Cosmetics Industry



Independent Analysis of the Recent Trends of Competition Rivalry in the Cosmetics Industry

Introduction

In this draft, main tasks which will be, conducted include independent analysis of the recent trends of development and Competition rivalry in the cosmetics industry in the current economic climate. In this assignment, I have to assume myself as an advisor and have to submit a report to the CEO of a Large Multinational company considering international Expansion of production capacity in a developing economy. Report will illustrate how this decision is likely to impact on the innovative capability of the firm. The report will provide evidence of the application of relevant theories, as well as your personal opinions.

In the last decade, the field of perfumery and cosmetics has noticed significant changes due to several factors (Johnson & Scholes, 2002, pp. 347). First of all, new trends in the production of perfumes and cosmetics in many ways changed the range of products. Most of perfumes and cosmetics have become among the basic properties of a number of additional. The new products that address the problems of youth are prolongation of the skin, correcting the structure, as well as improve the proportions and body lines. Radically the changed view of specialists and producers of perfumery and cosmetic products are in the packaging. 

Recent Trends of Development and Competition Rivalry in the Cosmetics Industry in Current Economic Climate

Analysis of the characteristics of competition in the market of perfumery and cosmetics has a theoretical and practical importance. Results of the study are material to the theoretical understanding of current trends in the cosmetic industry, mechanisms and methods of competition, the place and role of the largest perfumery and cosmetics companies in the relevant market (Williamson & Cooke, 2004, pp. 214). 

The work is particularly relevant because of need for European producers of perfumery and cosmetic products to gain better positions in the market to compete with Western companies not only in domestic but also foreign markets, including perfumes and cosmetics market in Europe. That is why the analysis of the European market is relevant in today's environment (Johnson & Scholes, 2002, pp. 348). 

The practical significance of studying the problem affected the study of competition in the perfumery and cosmetics market due to a change in the direction of increasing the share of European companies. In the domestic market after the 1998 crisis and the need not only to further its preservation, but also increase, and the emergence of European products in the new, yet undeveloped domestic producers of market segments (Johnson & Whittington, 2005, pp.122). Perfume and cosmetic industry is a special field of competition, embodying almost all modern types and forms of competition. Here, are concentrated the most recent achievements of scientific and technological revolution (biochemistry, computerization, etc.), both in products and tools to promote products (Williamson & Cooke, 2004, pp. 216). 

In addition, at the present time there is a shift in consumer consciousness, behaviour and ...