Making China Beautiful: Shiseido and the China Market Case Solution
This case describes the multinational growth of Shiseido, the world's fourth-largest cosmetics company, with a focus on its strategy in China since 1981. Furthermore, it explores the challenges facing companies in the globalization of a culturally specific industry such as makeup. The Japanese business showed keen interest in global expansion; however, initial investments meant nothing due to start of World War II. Therefore, it opted for European and North American markets, even though the markets were distinct from those in Japan.
Within its home local market, deregulation flexibility and the entry influx of foreign firms during the 1990s led to a substantial loss in market share. Shiseido assembled Aupres, a big cosmetic brand especially aimed at Chinese girls and entered China in 1981. In midst of continuous growth, ideas were declared to construct a huge network of voluntary stores in 2003. This case provides a framework for discussing the challenges of prioritizing the allocation of resources in an international business and managerial challenges of growing the China company further in the face of increasing competition.
PUBLICATION DATE: October 14, 2004 PRODUCT #: 805003-PDF-ENG
This is just an excerpt. This case is about STRATEGY & EXECUTION
