Case Study 1
Paolo De Cesare will need to consider various factors before making a decision to take the proposal to the beauty care global business unit to expand. One significant factor that needs to be considered is the fact that the consumers in the market outside Japan have totally different cultures than those consumers in Japan. In order for SK-II to be successful in the international market, P&G and De Cesare must first analyze the current situation in those markets to be able to identify the strategic opportunities and threats. In order to make the best possible decision regarding product expansion to Mainland China and Europe, it is important to analyze those international markets based on the SWOT analysis. One of the biggest opportunities in China is that consumers there have similar skin types than consumers in Japan. One of the biggest threats is that most Chinese residence has relatively low average incomes, which could affect their purchasing behaviors especially towards high priced products like SK-II, which cost about $100 a bottle. Europe’s market is quite different from China’s. European women have skin types unlike that of Chinese and Japanese women. The biggest threats are the difference in skin types among European women, the cultural gap between Europe and Asia, and the overcrowded skincare and beauty market in Europe. Thus, the big challenge for P&G would be to successfully introduce a new brand into an already crowded market. One of the biggest opportunities is the positive economic forces that enable high purchasing power for the Europeans. Baring in mind the conditions of the international markets global expansion would certainly be a tremendous task to successful accomplish. The lack of brand awareness and the cost of creating brand awareness outside the Asian countries could impede SK-II’s ability to become a global