Essay by PsiHUniversity, Bachelor's April 2005

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Description of company

Beiersdorf is a leading international branded goods company which has interests in the cosmetics and toiletries, medical and adhesive tape industries. The company focuses on the development and cultivation of a handful of strategic internationally renowned brands, the most famous among which are Nivea and Hansaplast. The group has over 18,000 employees and in excess of 100 affiliates worldwide.

The company works through three divisions:

• Cosmed - involved in the development and marketing of cosmetic products.

• Medical - engaged in the development and marketing of products in the fields of medicinal skin care, personal healthcare, professional wound care and orthopedic care.

• Tesa - produces self-adhesive products for industrial applications (e.g. the printing, packaging and automotive sectors) and retail consumers.

The company lays a heavy emphasis on research and development and is currently building a new cosmed research centre in Hamburg, which is due to open in 2003.

Beiersdorf believes that to remain competitive in an increasingly crowded market, it must stay at the forefront of developments and offer brands which consumers trust and believe to be value for money.

Strategic Position & Generic Strategic Approach

Beiersdorf AG is a company with a wide range of produced goods, which means that it faces a tough competition. It is presented at a multiple number of markets. The target group is quite big, meaning that it is very hard to face a rivalry from the alternative producers. Multinationals such as Procter & Gamble, Unilever and L'Oreal are huge firms with a very good positioning on the market and a big target group.

The main competition comes from the cosmetics market, where Beiersdorf has the biggest stake. The target group includes women of almost all ages and cultures, which creates an enormous responsibility for production image and quality.