Shiseido Company, Ltd: Facing Global Competition
...y the needs of wide audience using voluntary chain stores and “Partner 21” point-of-sale (POS) terminals. Shiseido has maintained high-speed growth through continuous optimization of is product mix and constant technological innovation. The Asian market (as a part of global market) shows the highest rate of economic growth around the world. The opportunities of Shiseido include: high potential to growth and profitability of the company; promotion to other divisions; increased revenue from success in China market, continue a global expansion and penetration into European markets and America; development of retailing activities in Asian market. There is no high threat to entry for the cosmetic segment because the big companies have a huge marketing advantage as well as established customer confidence in their product. In this very case it is very difficult to enter this highly competitive segment, which becomes the opportunity for Shiseido, as the company operates on the market for a long time. The main threat for Shiseido is raising costs wages and transfer fees (bank interest charges, policing equipment), authority refusing planning permissions, a high competition, and low market share. The weaknesses of the company are high competition among world leaders and low level of personal consumption in Japan. Inappropriate structure of Head office and management team prevents company from new strategies implementing, and fast development of new product lines. The creation of new products requires a lot of capita...