Industry Assessment - Part 1
Cosmetics Industry
Riley Bell
Alexandru Colita
Nicholas Gonzalez
Derek Morin
Yuan (Amy) Zhang
MGMT 390: Industry Analysis Projects
Norine Webster
University of British Columbia Okanagan
February 14th, 2014

Table of Contents

1. Executive Summary……………………………………………………………………….2 2. Industry Description………………………………………....…………………………….3 3. Value Chain……………………………...………………………………………………..5 4. Relevant Features/Factors for the Industry ……………………………………………….7 5. Porter’s Five Forces ………………………………………………………………………9 6.1. Competitors and Level of Rivalry ……………………………………………………………………...9 6.2. Suppliers and Relative Power…………………………………………………………………………10 6.3. Buyers and Relative Power …………………………………………………………………………...10 6.4. Possible New Entrants, Barriers to Enter and Exit, Threat of Entry ………………………………….11
5.5 Substitute Products, Barriers to Switching, and Threat of Substitutes………………………………...12

6. Financial Ratios………………………………………………………………………….12 7. STEEP Analysis………………………………………………………………………….16 7.1. Social/Cultural Factors…………………………………………………………………………………16 7.2. Technological Factors…………………………………………………………………………………..18 7.3. Economic Factors………………………………………………………………………………………19 7.4. Environmental Factors………………………………………………………………………………….20 7.5. Political Factors………………………………………………………………………………………...20

8. Significant Drivers……………………………………………………………………….20 9. Key Success Factors……………………………………………………………………..22 9.1. Distribution……………………………………………………………………………………………..22 9.2. Brand Name and Brand Loyalty………………………………………………………………………..22 9.3. Manufacturing and Packaging………………………………………………………………………….23 9.4. Excellent Customer Service…………………………………………………………………………….24 10. Conclusion……………………………………………………………………………….24 11. Appendix………………………………………………………………………………....26 12.