Comparative innovative business strategies of major players in cosmetic industry

Abstract

PurposeThe cosmetic industry is a very lucrative, innovative, and fast paced industry where product innovation is the key to success. The purpose of this paper is to present a detailed analytical (qualitative) study of cosmetic industry in the global marketplace with a focus on the four market leaders in this industry relative to their business and innovation strategies.Design/methodology/approachBusiness analyses include Strengths, Weaknesses, Opportunities and Threats (SWOT), Porter's value chain and five forces, and financial applied to the four industry leaders.FindingsEach of these cosmetic companies is unique. They each offer something different to the industry; selling method, marketing strategy, product line, and distribution channel.Practical implicationsThe industry trends indicate that the future of cosmetics may move towards more joint ventures between drug companies, cosmetic companies and nutritional/food companies as cosmetic companies look for new ways to be innovative.Originality/valueThe research provides an in‐depth business analyses of cosmetic industry using SWOT, Porter's value chain and five forces and financial with results obtained that are generalizable to the entire cosmetic industry. Projections on the future of cosmetic industry are also presented.