Essay by adri_barcaUniversity, Bachelor'sB, April 2005

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Shiseido is a Japanese company founded in 1872 by Yushin Fukuhara and was at the beginning intended at the pharmaceutical sector. Since, it has become leader in cosmetic Japanese market but the market has been spiced with the introduction of foreign competitors like Max Factor. The company has had difficult period like in 1987 (six percent decrease) but has always found solutions and that's why for example the company had to rethink its marketing strategies. The agreement with Johnson and Johnson is just an answer of a number that are being made to improve its position. There are also opportunities for the Shiseido to invest in other markets such as a men's product range and also the foreign market.

The company proposes a large range with three principal categories:

-Cosmetics74% of sales

-Toiletries16% of sales

-Others10% of sales

With the long term project, Shiseido identified three goals: technological excellence, diversified operations, and customer satisfaction.

We'll see in this case the current situation of Shiseido and its possible opportunities in term of market, distribution and exportation, but on the other hand we'll see few weakness of the company.

1) What are the strengths, weakness, opportunities and threats for Shiseido?


Leader on the domestic market of cosmetics in terms of revenues and market share

Shiseido's sector of R&D is very complete and at the top of technology

Shiseido propose products for all types of demand with its inexpensive "Cosmenity" line and its other brands (lower end of the market), they have a very large range (about 3000 products)

Establishment of its chain store system which permit to control a lot of things in the shop (merchandising, sales corner development...)

Shiseido currently represented by 17 subsidiaries and more than 8,700 outlets in 69 countries

Shiseido introduces at least one new...