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Essay about Sa Sa Cosmetics – Analyzing Competition

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SA SA COSMETICS – Analyzing Competition
Sa Sa Cosmetics is a very successful Hong Kong based discount cosmetics retailers. The case describes how Sa Sa became successful, culminating in its IPO in 1997. Since then, however, its fortunes have declined somewhat. The case discusses recent initiatives that were undertaken to sustain growth momentum. Sa Sa also undertook some marketing research studies. The research findings appear to confirm that Sa Sa may have some major problems. As 2001 comes to a close, Sa Sa contemplates what else can be done to improve profitability and keep on growing.

1. What were the reasons for Sa Sa’s early success?
SA SA was creating value for its customers by providing them with quality products at a fair …show more content…

In early days the Sa Sa operated as a family-run culture, help retain them but afte the IPO, when Sa Sa changed strategy to be creating value for the Shareholders hard to imitate: it was not hard to imitate as evidenced by the whole slew of competitier copied once known. non-substitutable-yes, there were various product segments/tiers; Sa Sa focused top brand names

Core Products
Business Units
End products

Porters 5 forces:
Industry Rivalry:
Concentration:
Diversity of the Competitors
Product Differentiation
Excess Capacity
Exit Barriers
Cost Conditions
Supplier Power
Threat Of Entry
Buyer Power
Threat of substitute

What changes have occurred in the stores since Sa Sa’s early success? (Not including the strategic issues outlined in Figure A.)
Sa Sa was able to offer the cosmetics at a cheaper prices than competitors combined with the sales team able to help the customers with personal needs and using customer insights to buy/stock the inventories, Sa Sa had built unique value for the customers. Since the IPO, many new competitors (bonjour and rainbow) have entered the market. They are able to copy the core competency that was first developed by Sa Sa. Additionally very well known drugstores (Watson’s and Manning’s), have started offering the cosmetics! Both have used the existing infrastructure and corporate capital resource to position themselves as significant

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