Revlon`s and Estee Lauder`s positions (International Business)

REVLON AND ESTEE LAUDER 'S POSITIONS

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REVLON AND ESTEE LAUDER 'S POSITIONS

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Revlon and Estee Lauder 's Positions

Introduction

Multinational Corporations obtain their success by delivering more than quality products /services . Most of the time , skills of selling products has a major role in their success . Within the history of business , we witness companies with great ability to sell take their place as the most dominant producers in their market . Microsoft Corporations , for instance , is named

one of the greatest sellers of the century , while the company does not necessarily known to produce the best products in the industry . Marketing strategies , corporate image and the popularity of brands are important factors that created success . Many of the `older companies are maintaining their share of the market relying on brand popularity or corporate image

Nevertheless , the modern industry is a place where changes never stop As the society became more global and marketing strategies became more creative , people are also becoming increasingly `stubborn ' and less easy to persuade . Despite the lasting significance of several brands , people are becoming more critical and sensitive in comparing values offered by products . Within this , we are discussing Revlon and Estee Lauder two of the market leaders in the personal product industry . Both are well known players within the industry that have considerably contributed in building the industry 's image . This will examine their latest position within the market , viewed from their financial position , competitive strategy and market conditions II . Industrial Background

II .1 Market Conditions

The largest market for cosmetic products is the European markets . The European cosmetics industry is also presumed to be the world leader in international cosmetics environment . More than 1 ,500 ,000 European are employed in the cosmetics industry in the year 2000 . Nevertheless , most of the international brands of cosmetics are US-based rather than European . Avon , Revlon , Angie 's Cosmetics Unlimited ,

G and Estee Lauder are examples of those companies . This is due to a `softer regulation within the US cosmetic industry . Cosmetic registration in the US is voluntary (`Cosmetic Animal Testing , 2006

The American cosmetic market is also very much active . Americans spend millions of dollars purchasing cosmetic products . As people are becoming more aware of their beauty , the aggregate demand for cosmetic products was predicted to rise above 4 billion by 2005 . This number is will continue to rise gradually over 2006 II .2 PEST Analysis

Politic

As mentioned , government policies affected the industry rather significantly . Despite the fact that most cosmetic companies are obtaining their revenues from the European market , the largest cosmetic corporations are based in United States where government regulations toward cosmetics are generally milder

Economic

Some of the multinational cosmetic companies -like Estee Lauder- were starting the business by giving away free perfumes or lipsticks Nevertheless , the cosmetic industry has become more influenced by prestige and image rather than price considerations . However , Revlon and some other companies are...