Shiseido
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Corporate Strategy Analysis
Group D
Shiseido
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Corporate Strategy Analysis
Group D

Contents Executive Summary 2 Company History and Background 3 Company Analysis 5 Primary Activities 8 Secondary Activities: 9 Strategic Problems 9 Expense Management 10 R&D Expenditures 12 Brand Value 14 Appendices 16

Executive Summary

Shiseido is a Global Cosmetics Brand based in Japan, participating in the Beauty and Personal Care Market. Shiseido prides itself on the “Premium” status of its brand across the world, as well as a strong focus on both R&D and the superb training of its Beauty Consultants in properly creating a flagship brand that is beloved by customers. Also part of Shiseido is a broad portfolio of Cosmetics brands in various parts of the world – covering both global and niche target markets to round out the firm’s total product offering. It is these aspects that have driven Shiseido to a household name in its home Japanese market – but it is also these factors that have led it down a path of many problems. This study seeks to identify these problems and the strategic underpinnings responsible for them. To this end, the following line of investigation is used. First, a firm analysis identifies what Shiseido itself regards as core to its identity. Second, an industry analysis seeks to understand the environmental factors that affect its strategic considerations. Lastly, three forces: Expense Management, R&D Expenditures, and Brand Value, are identified and proven to be the primary culprits of Shiseido’s strategic floundering. These factors are investigated and proven to exist by a comparative analysis between Shiseido and its comparable competition (L’Oreal and Kao).

Scope and Assumptions of the Study