The Strategy Adopted By Natura

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The study aims to understand the strategy adopted by Natura allowing it to assume market leadership in Brazil, competing with large international organizations.
Even though Natura has achieved success, it has reached a maturity point in the market and in order for it to continue growing, a change of strategy is crucial.
For this business report to be precise, many frameworks were used, amongst them the PESTLE analysis, Value chain analysis, 7S, VMOST and Porter’s 5 forces; to analyse the key issues of this industry and the strategic gap.
This research led me to compare the current strategy of the company and visualize the gap between this and the key issues that they have to tackle. Furthermore, in order to conclude this
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The growth of emerging markets along with middle class, this has allowed more people to have more purchasing power parity, leading to an increase in the consumption of healthcare and beauty products. This socioeconomic variety can allow the company to develop differentiated products to meet the specific needs of these various niches. New markets like Russia, China and Iran are very promising for the cosmetics industry. However, the company also has some raw material costs linked to the dollar, which in the event of substantial increases in the US currency, Natura might need to raise the price of their products and this can directly affect sales and decrease revenue. Acquisitions has been a big trend over the past 5 years for the cosmetics industry. Some examples of this were L’Oreal buying Essie and Shiseido buying Bare Essentials in 2010.
Consumers are constantly changing, with the pressures of life and lack of time; we are becoming more of a spiritual society. Our concern towards the environment is increasing along with social responsibility. For consumers nowadays, transparency is something vital and they are increasingly aware of what ingredients make up a product. Men’s habits in regard to personal care has been increasing rapidly over the past few years and the trend is to continue, which will change the market. The anti-aging skin care segment is also growing due to the large population of baby
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