Revlon Strategic Plan

2974 Words Feb 23rd, 2013 12 Pages
I. BACKGROUND OF THE STUDY

Revlon Inc. is a world leader in cosmetics. It was formed in 1932 by brothers Charles and Joseph Revson and Charles Lachmann with a $300 investment. During Revson’s time, a near monopoly on beauty parlor sales was developed brought about by door-to-door sales of nail polish. He expanded into the lipstick market with the slogan “Matching Lips and Fingertips”. Thus, after six years the small nail Enamel Company transformed into one of the most recognizable brands and companies in the world. After the death of Charles Revson, Michel Bergerac took over and built up the pharmaceutical side of the business. As a result of this, Revlon lose its ground in cosmetics. Thereafter, Ronald Perelman, chairman and CEO of
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3. Economic Environment The availability of economy brands in the market significantly strengthened the strong growth in color cosmetics amid the tighter economic conditions in the Philippines. In 2009, an increasing number of middle-income consumers shifted to more affordable brands in order to cope with the economic slowdown in the country. However, the increased prominence of lower-priced products may lead to a not-so favorable market for high priced beauty products as Revlon.

B. COMPETITIVE ANALYSIS

INTENSITY OF COMPETITIVE RIVALRY | High | Low | Intensity of Competitive Rivalry | No. of competitors | | | High | Industry Growth rate | | | Low | Product Differentiation | | | High | Switching Cost | | | High | Exit Barrier | | | High | Strategic Stakes | | | Low |

Using the above table as a guide, the researchers found out that the intensity of rivalry among existing competitors of Revlon in the Philippines is high considering both international and local companies offering beauty and personal care products. The presence of strong international and local beauty companies in the Philippine market led to a high intensity of rivalry. International competitors like Avon and Estee Lauder are major players in the Philippine market; local companies such as Belo, Ever Bilena and Careline are also gaining

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