...* Table of Contents List of Abbreviations i List of Figures ii 1 Introduction 1 2 Case Analysis Shiseido 1 2.1 Shiseido’s International Expansion Strategy 1 2.2 Shiseido’s Global Advancement Capabilities 4 2.3 Contemporary Adequateness of Shiseido’s Strategy 5 2.4 Re-structuring as a Means of International Value Enhancement 8 3 Conclusion 10 Reference List 11 Appendix 12 * List of Abbreviations CSR Corporate Social Responsibility R&D Research and Development U. S. United States * List of Figures Figure 1 - Internationalization Matrix 12 Figure 2 - Demography China 2025 13 Figure 3 - Urbanization in China Today 14 1 Introduction Founded in 1872 by A. Fukuhara, the traditional Japanese company Shiseido began to successfully produce westernized pharmaceuticals and cosmetics for national high-class consumers in 1878. The founders’ son, S. Fukuhara, studied and gained international experience in the U.S. and France, and thus, induced Shiseido to pursue an international strategy as to grow economically and enhance product recipes by embracing technological change. This strategy change was the initial step towards an internationally successful company which today is worth approximately €7.1 billion (Shiseido Company Limited, 2011a). In order to gain this prosperous status, the company pursued a specific international strategy, which will be elaborated in the first chapter and will be compared to prevailing industry conditions in...
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...Case 5. Shiseido Company, Ltd.: Facing Global Competition • 667 C ASE 5 SHISEIDO COMPANY, LTD.: FACING GLOBAL COMPETITION INTRODUCTION Shiseido was founded by Yushin Fukuhara as Japan’s first Western-style pharmacy in 1872, and has shifted its focus back and forth between cosmetics and pharmaceuticals since 1915. Its strength in both areas has enabled it to weather the Great Earthquake of 1923 and World War II. It leads the cosmetic industry technologically, and has offered Japan many “firsts’’ in products. It introduced Japan to its first toothpaste in 1888. In 1902, Shiseido introduced Japan’s first soda fountain/drugstore. Three years later, it established the chain store system, which became the backbone of the firm and the standard distribution system for the industry. Shiseido began international expansion in 1957 and is currently represented by 17 subsidiaries and more than 8,700 outlets in 69 countries. Offshore production accounts for about 50 percent of its global sales, which amounted to 64.9 billion yen in fiscal 1997. In 1987, Yoshiharu Fukuhara, grandson of the founder, took over as president. The same year, Shiseido announced a 6 percent decrease in sales and a write-off in inventory worth $239 million; net income fell 34 percent to $72 million. The company also abolished separate sales volume budgeting for sales companies and retail outlets, which had been faulted for the tendency of salesmen to push sales to retailers in order to meet in-house...
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...Case 5. Shiseido Company, Ltd.: Facing Global Competition • 667 INTRODUCTION Shiseido was founded by Yushin Fukuhara as Japan’s first Western-style pharmacy in 1872, and has shifted its focus back and forth between cosmetics and pharmaceuticals since 1915. Its strength in both areas has enabled it to weather the Great Earthquake of 1923 and World War II. It leads the cosmetic industry technologically, and has offered Japan many “firsts’’ in products. It introduced Japan to its first toothpaste in 1888. In 1902, Shiseido introduced Japan’s first soda fountain/ drugstore. Three years later, it established the chain store system, which became the backbone of the firm and the standard distribution system for the industry. Shiseido began international expansion in 1957 and is currently represented by 17 subsidiaries and more than 8,700 outlets in 69 countries. Offshore production accounts for about 50 percent of its global sales, which amounted to 64.9 billion yen in fiscal 1997. In 1987, Yoshiharu Fukuhara, grandson of the founder, took over as president. The same year, Shiseido announced a 6 percent decrease in sales and a write-off in inventory worth $239 million; net income fell 34 percent to $72 million.The company also abolished separate sales volume budgeting for sales companies and retail outlets, which had been faulted for the tendency of salesmen to push sales to retailers in order to meet in-house quotas. The 1998 product mix consisted of cosmetics ...
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...INTRODUCTION Shiseido Company is the leading cosmetics company in Japan and the four-largest in the world. in more than 60 countries abroad, Shiseido (pronounced ‘she-say-doe’) offers a variety of make-up, skin care, hair care, body care, sun care and fragrance products. In Japan and selected foreign countries, the company markets additional products, including toiletries, health and beauty foodstuff, pharmaceuticals and fine chemicals. In addition to the flagship Shiseido brand, the company markets products under a number of other brands including Aqua Label, Benefique, d’ici la, Elixir Superieur, Integrate, Maquillage, Tsubaki and Uno. Shiseido has built a network of some 25,000 franchised cosmetics retail outlets in Japan, both stand-alone and within department stores and supermarket; additional retails outlets are located overseas, particularly in China. Going beyond company controlled outlets, Shiseido products are distributed through approximately 83,000 stores in Japan and about 39,000 overseas. The company also runs various salons, upscale boutiques and restaurants. Of Shiseido’s sales, about 79 percent come from its cosmetics division, about 9 percent from its toiletries division, which comprises soaps, hair-care products, mass market cosmetics, and fine toiletries and the remaining 11 percent from catch all others division which includes beauty salon products, health and beauty foods, pharmaceuticals, fashion goods and fine chemicals. In global, Shiseido now derives nearly...
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...Marketing Project Skincare Product Dermalogica’sClearingMattifier Cleanser Shiseido’s Purifying Cleansing Form Neutrogena’s Oil-Free Acne Wash 1. INTRODUCTION As we know, products can be classified as either business or consumer products, depending on the buyer’s intension and these products are marketed difference; they are marketed to different target markets and tend to use different distribution, promotion, and pricing strategies. In my paper, I choose the cleanser (Skincare product) as the consumer products to introduce and tell how they are different from each other as well as the Marketing Mix for all three products. Cleanser for acne skin ofDermalogica, Shiseido, and Neutrogena skincare products are three popular products that are sold at United State with larger market. First of all, as a brand, Dermalogica immediately upset the prevailing paradigm of beauty and glamour by classifying skin care as a health issue as opposed to a cosmetic concern. Just as it removed common irritants from the ingredient menu, Dermalogica also introduced a powerful new element into the brand identity: the specialized expertise of the professional skin therapist.Truly understanding your skin is the first step towards a lifetime of skin health. Start with a Dermalogica professional skin therapist: fortunately, with over 75,000 of them in over 50 countries, chances are you have a skin health expert just around the corner. Clearing mattifier cleanser of Dermalogica is a medicated...
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...Economics and Philosophy, 26 (2010) 27–46 doi:10.1017/S0266267110000040 Copyright C Cambridge University Press GAME THEORY: A PRACTITIONER’S APPROACH THOMAS C. SCHELLING University of Maryland To a practitioner in the social sciences, game theory primarily helps to identify situations in which interdependent decisions are somehow problematic; solutions often require venturing into the social sciences. Game theory is usually about anticipating each other’s choices; it can also cope with influencing other’s choices. To a social scientist the great contribution of game theory is probably the payoff matrix, an accounting device comparable to the equals sign in algebra. In 2005 I received an award ‘for having deepened our understanding of conflict and cooperation through game-theoretic analysis’. Does that make me a game theorist? If so, what defines a game theorist? Notice that ‘game theory,’ in contrast to almost any other discipline you might think of, has ‘theory’ in the name of the subject. There are economists, only some of whom are economic theorists; statisticians, only some of whom are statistical theorists; physicists, only some of whom are theoretical physicists; and so on through most disciplines. But game theory has ‘theory’ in its name. So is a game theorist, like an economist who uses economic theory, someone who uses game theory or is a game theorist, like an economic theorist who produces economic theory, someone who produces theory...
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...2014. 9. 26 Vol.126 포커스 일본 의료기기 산업의 ASEAN 시장 진출 전략 ··················································· 1 정책동향 [미 [미 [일 [일 [일 [중 [중 [중 국] 미국 중간선거, 오바마케어 성공에 따른 영향 없을 전망 ··················· 5 국] 이민자 11만5천여명, 오바마케어 수혜자격 박탈 위기 ······················· 5 본] 일본, iPS 세포 임상연구 박차 … 난치병 극복 기대감 ↑ ··················· 6 본] 난치병재단, 자궁경부암 백신 접종 권장 촉구 ······································ 7 본] IMF, 이민자 유입 통한 저출산․ 고령화 해법 제시 ······························ 7 국] 중국 정부, 공공장소 담배광고 금지 추진 ············································· 8 동] UAE, 만성질환자 운전면허 금지 검토 ·················································· 9 동] 사우디 보건부, 병원․ 헬스센터 전면 위생점검 착수 ··························· 9 [ EU ] 벨기에 법원, 무기수에 안락사 허용 … ‘죽을 권리’ 인정 ··················· 6 [아시아] 인도, 의료관광 육성 정책 효과 … 중동 환자 선호국 부상 ··············· 8 산업동향 [ EU ] 노바티스, TB 얼라이언스에 결핵약 개발사업 이양 ··························· 10 [독 [미 [미 [영 [일 [일 일] 바이엘, 헬스케어 중심 생명과학기업으로 재탄생 ······························ 10 국] 애플, ‘헬스킷’ 개인정보 보호 강화 ······················································· 11 국] 버클리대, 뇌에 알츠하이머 저항 기전 존재 확인 ······························ 12 국] 허더스필드대, “ ‘푸니칼라진’으로 알츠하이머 치료 가능” ················ 12 본] 교토대, iPS 세포 이용해 스타틴으로 연골조직 형성 ························ 13 본] 시세이도, 마케팅 혁신 플랜 가동… 브랜드 매니저 시스템 도입 ··· 14 [아시아] '18년 인도 제약산업, 480억불 규모 전망 ········································· 11 [ EU ] 코펜하겐대병원, “스타틴에 당뇨합병증 억제 효과” ··························· 13 [중남미] 브라질풍 스킨케어, 해외에서 인기 폭발 ············································· 14 신규보고서 [중 [중...
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...markets. However, as discussed below, some beauty brands are still targeting the country as a key for growth in the coming years. To note, Shiseido announced plans to introduce its corporate culture and promote sales at a Shiseido Exhibition/1872–2011/Empire of Beauty event in Russia. To be held from March 1 to March 20, 2011, the event will take place in the arcade of GUM, the landmark in front of Red Square that is one of Moscow’s largest department stores and an attraction for tourists worldwide, as well as Russian consumers. The event space is nearly 90 meters long, and the showcase will allow visitors to witness Shiseido’s history and aesthetic sensibility through exhibits of an array of products, posters and other items introducing Shiseido’s corporate culture. Moreover, a sales promotion corner will offer trials of skin care products from the global brand Shiseido premium cosmetics lineup. This initiative advances Shiseido’s aims to further enhance its presence while continuing to successfully expand its business in the Russian market. Shiseido is focusing on expanding sales in emerging markets with the aim of becoming a global player representing Asia with its origins in Japan. The company considers Russia a particularly promising market and after commencing sales there through a distributor in 1999, established Shiseido (RUS), LLC in 2007 as a wholly owned...
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...Shiseido ------------------------------------------------- Corporate Strategy Analysis Group D Shiseido ------------------------------------------------- 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...
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...An individual who purchases products and services from the market for his/her own personal consumption is called as consumers. Consumers’ behavior deals with the study of buying behavior of consumers. Consumers buying behaviors are influenced strongly by Cultural, social, personal and psychological characteristics. Cultural Factors: The most basic cause of a person’s wants and behavior is culture. It includes the basic principles, perceptions, preferences and behavior that a person gets from his parents and relatives as a child. But whereas sub-culture is ‘culture within culture’ that has different values and way of life and this can be based on anything from period to civilization. Culture is an invasive power which underlines all facets of social activities and communication. Cultural factors also include social status and genders. It has a significant effect on a person’s buying behavior. Cosmetics are ever green choice in human culture, especially for women and it is also representing an important way of presenting women and transform their public personality. Now a days, beauty and physical charisma are constantly emphasized as enviable and worthy characteristics in the society. This research focuses on the influences of culture on consumer’s cosmetics buying decision making process. Social Factors: It also influence the consumers’ buying decisions. Human are social being. We need people around us to talk to and discus various issue and come to a decision or better solution...
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...CASE STUDY REPORT INTERNATIONAL MARKETING SHISEIDO Shiseido is a Japanese cosmetics producer, market leader in its home country and one of the top ten players in the industry worldwide. Founded 1872 by Arinobu Fukuhara, Shiseido is also known for being the oldest cosmetics company in the world. COMPANY FACTS Net sales (consolidated): $ 7,024 billion Number of employees: 28,810 SHISEIDO group: 89 companies 29 domestic 57 overseas STRENGTHS, WEAKNESSES, OPPORTUNITIES AND THREATS Apart from being market leader in Japan, Shiseido is putting a lot of effort into research and development. Other important points are the strong focus on customer relationship management and environmental protection. But even though R&D is a cornerstone of Shiseido’s corporate philosophy, only 5% of the invented products are patented. This makes the company very vulnerable to competition. Another negative point is the limited other number of points of sale, thus making it hard to reach , customers. But there are also opportunities for Shiseido in the future. First of all, introducing the men’s cosmetics line opened the door to a new market with high potential. Second, forming strategic alliances, especially with foreign companies, can also lead the way to new markets (the same happened in the past when Shiseido formed alliances with Johnson & Johnson or Coca Cola Cola). Searching for new market chances is important because of various threats like for example the increasing competition in existing...
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...Business Description 1.1 Company Background Shiseido started off Japan's first Western-style pharmacy 140 years ago in 1872 (Shiseido, 2012) .Since then, Shiseido has led Japanese cosmetics technology and culture, it has expanded its business to countries and regions in Europe, Americas, and Asia/Oceania (Shiseido, 2012). Shiseido expands globally since 1957 in a number of countries in the Asian market, starting point in Taiwan then to Singapore, Thailand and China. Shiseido brand products are sold in 88 countries and regions including Japan ,as of April 2012 (Shiseido, 2012). Shiseido is accelerating the speed with which we are exploring new markets in order to deliver Shiseido brand products to more customers around the world. Currently Shiseido has 10 Research and Development sites and 15 plants in their production network. Primary product focus are on skincare and cosmetics, other product offerings includes healthcare, fine toiletries, restaurant operation and other activity. Their skincare range targets at women from 15 and above, having different skincare ranges for different age groups (Anon.). Their major competitors includes in Japan, local big players such as Kanebo and Kose. 2.0 Internal Analysis 2.1 Strengths Shiseido's strengths includes having more than 10 strong brands/lines, having the advantage in more than 100 years of skincare research and high quality assurance on the products they manufactured (Shiseido, 2012). Shiseido's current resources are...
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...Introduction Emerging markets are more important than ever in nowadays international businesses, they are increasingly making up a large share of many multinationals’ revenues and growths. Many multinationals believe their future success depends on how well they can master and win in these markets, they project share in their business based in emerging markets will increase 20-50% more in the next decade (Choudhary et. al., 2012). This study aims to reveal the motivations behind the multinationals and how multinationals succeed and fail in emerging markets with reference to relevant theories and examples. Theory of Multinational There are many theories analyzing why firms start to engage in foreign direct investments, the Eclectic Paradigm is a more integrated and general approach amongst the various, it explains how the multinational firms make their decisions and strategies by considering the Ownership Advantages (O), Location Advantages (L) and Internalizations factors (I). The theory incorporates ideas of market failure, location advantages and industrial organizations and is thus more holistic approach. The “O” paradigm explains why firms decide to start investing abroad because of possessing ownership-specific advantages relative to domestic firms, and the benefits can outweigh the transaction costs of operating in foreign markets and overcome the competitions of domestic firms, which lead to higher profitability with reduced costs. Examples of ownership-specific...
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...Shiseido’s International Strategy Overview Shiseido started its business as Japan’s first Western-style pharmacy in 1872. Over the 140 years of development, Shiseido has positioned itself as a leading cosmetics company through helping people live beautifully both in domestic and in global markets. Shiseido has been making efforts to build customer trust brands through improving the technological capability, product function and safety, hospitality at sales counters and other elements regarding to customer trust. Shiseido began its internationalization process in 1957 by establishing a subsidiary corporate in Taiwan. After that, Shiseido accelerated its process of being a global play through entering prestige markets in Europe, Americas and China. Over 50 years, Shiseido has built a strong brand in the global market through diversity and brand equity. Currently, Shiseido is operating business in 87 countries and regions including Japan. And in 2012, the net sales in the global markets reach roughly 50 percent of the total net sales of Shiseido and the overseas sales ratio grows to over 44 percent (Shiseido, 2012). In 2012, Shiseido’s global cosmetics division centers on cultivating its prestige brands and emphasizes on developing its business in Asia market, especially in China. As a result, the sales from the global cosmetics division grow by over 12 percent year on year on a local currency basis (Shiseido, 2012). The sales in the Europe increase by around 10 percent, mainly...
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...Part 1 Project objectives and overall research approach 1.1 Introduction The topic chosen for the Research and Analysis Project is The Marketing Strategy of Shiseido China Co., Ltd (Shiseido) and its effectiveness. Marketing is essentially about marshalling the resources of an organisation to meet the changing needs of customers on whom the organisation depends. Organisations try to identify customers’ needs and develop products that will satisfy these needs through an exchange process (Palmer, 2004). 1.2 Reasons for Choosing the Topic Marketing is more than selling and advertising. It involves satisfying customer needs. The marketer should understand consumer needs; develop products and services that provide superior customer value; and price, distribute, and promote them effectively. Hence, marketing is the process by which companies create value for customers and build strong customer relationship to capture value from customers in return (Kotler et al., 2009). The main role of marketing in the organisation springs from the fact that marketing is the process via which an organisation creates value for its customers. Value is created by meeting customer needs. Thus, an organisation must define itself not by the product it sells, but by the customer benefit provided. Having created the value for its customers, the organisation is then entitled to capture a portion of that value through pricing. To remain a viable concern, the organisation...
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