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J J PHILIPPINES INC JOHNSON S FACE POWDER A Case Solution

Posted by Adam Hudson on Dec 20 2017

1. INTRODUCTION OF J J PHILIPPINES INC JOHNSON S FACE POWDER A CASE SOLUTION

The Harvard business review has published the J J PHILIPPINES INC JOHNSON S FACE POWDER A Case
Study. Like all HBR case studies, the J J PHILIPPINES INC JOHNSON S FACE POWDER A Case is designed
and drafted in a manner to allow the reader to experience a real-world problem and solve it accordingly.
The case study, like other HBR case studies, will help the reader and students develop a broader, and a
clearer understanding of the business world and dynamics.

The J J PHILIPPINES INC JOHNSON S FACE POWDER A Case is based on a current managerial and strategic
problem being faced by the organization, which must be solved tactfully to allow progression, as well as
maintain a competitive position. This paper is written to facilitate the case solution for the J J
PHILIPPINES INC JOHNSON S FACE POWDER A Case Study.

The case solution for the J J PHILIPPINES INC JOHNSON S FACE POWDER A Case Study first identifies the
central issue that is elaborated on throughout the case. The case solution then analyses the case through
relevant strategic models and tools including the SWOT Analysis, Porter Five Forces Analysis, PESTEL
Analysis, VRIO analysis, Value Chain Analysis, BCG Matrix analysis, Ansoff Matrix analysis, and the
Marketing Mix analysis. This analysis is to help in the identification of a feasible strategy and solution for
the J J PHILIPPINES INC JOHNSON S FACE POWDER A Case Study. Alternative solutions are also proposed
in the case solution, primarily because alternative solutions often act as contingency plans.

2. PROBLEM IDENTIFICATION

2.1. Harvard business school case studies

All case studies published by the Harvard business review comprise of a central problem that is faced by
the protagonist. This problem mostly holds implications for managerial and strategic directions of the
company. For readers and students of HBR case studies, it is critical to identify the problem that the J J
PHILIPPINES INC JOHNSON S FACE POWDER A faces. This problem is usually hinted towards in the
introduction of the case and develops along the way.

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2.2. Solving HBS case studies

As a result, for solving the J J PHILIPPINES INC JOHNSON S FACE POWDER A case, it is essential to read
the case study thoroughly. The identification of the problem correctly is vital for undergoing the analysis
rightly, and for developing relevant solutions for the J J PHILIPPINES INC JOHNSON S FACE POWDER A
Case Study. It is also essential to identify all the appropriate parties that are being impacted by the
problem as well as the decision. The correct problem identification will ensure that all the solutions
developed during the case analysis of the J J PHILIPPINES INC JOHNSON S FACE POWDER A Case Study
are applicable and pragmatic.

EXTERNAL ENVIRONMENT ANALYSIS

The external environment analysis is needed for the J J PHILIPPINES INC JOHNSON S FACE POWDER A
Case Study to make sure that it actively, and proactively responds to the macro-environment. The macro
environment or the external environment for the J J PHILIPPINES INC JOHNSON S FACE POWDER A Case
includes those factors which are not in control of the business or the company directly. As a result:

The J J PHILIPPINES INC JOHNSON S FACE POWDER A cannot influence these factors in its favour, and in
contrast, these factors directly affect the operations and workings of the company.

As a result, J J PHILIPPINES INC JOHNSON S FACE POWDER A must make sure to continually assess and
review the external environment to make sure that it responds to external factors, and take them into
account, during strategic decisions, and strategy devising.

Businesses like J J PHILIPPINES INC JOHNSON S FACE POWDER A make use of strategic model tools
continually to make sure that they are aware of the external environment.

These include tools like the pestle analysis and Porter’s five force model, as well as strategic group
analysis and pentagonal analysis, to name a few.
The external analysis for the J J PHILIPPINES INC JOHNSON S FACE POWDER A Case Study will assess and
will apply the strategic models and tools to review the business environment for the company.PESTEL
Analysis

3.1.1. Political

Political factors and elements can have a direct and indirect impact on the business. This is seen through
the J J PHILIPPINES INC JOHNSON S FACE POWDER A Case Study.

3.1.1.1. Policy Makings

Policymakers for the J J PHILIPPINES INC JOHNSON S FACE POWDER A Case are in all likelihood to
intervene in the business surroundings.

Commercial restrictions and political stability are additionally integral factors that will determine the
success or failure of J J PHILIPPINES INC JOHNSON S FACE POWDER A.

3.1.1.2. Taxation

Tax policy will influence the cost of doing business for J J PHILIPPINES INC JOHNSON S FACE POWDER A.

An increase in organization taxation (on business profits) has a similar impact as an expansion in
expenses.

Organizations can pass a portion of this increase on to shoppers in more expensive rates, yet it will
likewise influence the bottom line of the business.

3.1.1.3. Government Support

The government helps organizations in two primary ways: monetary help and regulatory.

J J PHILIPPINES INC JOHNSON S FACE POWDER A can use government assistance and grants for purposes
of growing the business, advancement, exporting, and innovative work.

J J PHILIPPINES INC JOHNSON S FACE POWDER A can also be impacted by when Governments modify
regulations and laws.

3.1.1.4. Political Stability

Lack of political stability in a country impacts business tasks. Political stability is particularly essential for
the organizations which work globally, such as J J PHILIPPINES INC JOHNSON S FACE POWDER A.
A forceful takeover could oust a legislature. The takeover could prompt mobs, plundering and general
issue in nature. These disturb business tasks for J J PHILIPPINES INC JOHNSON S FACE POWDER A.

Purchasing political risk insurance is a way for J J PHILIPPINES INC JOHNSON S FACE POWDER A to
oversee political hazard. Organizations that have worldwide activities utilise such as insurance to lessen
their risk presentation.

The soundness of a political framework can influence the attractiveness of a specific nearby market for J
J PHILIPPINES INC JOHNSON S FACE POWDER A.

3.1.2. Economic

The economic factors are one of the most important of PESTEL factors and can influence J J PHILIPPINES
INC JOHNSON S FACE POWDER A in several ways.

3.1.2.1. GDP

Economic components have the most evident effect on the profitability and overall appeal of J J
PHILIPPINES INC JOHNSON S FACE POWDER A.

Even though GDP per capita is a useful economic factor, GDP per capita gives just a fractional perspective
on the economic factors that may influence J J PHILIPPINES INC JOHNSON S FACE POWDER A.

Higher GDP leads to higher disposable income and hence higher sales for J J PHILIPPINES INC JOHNSON S
FACE POWDER A.

3.1.2.2. Inflation

Higher inflation will disintegrate the purchasing power of the consumer and the shopper

Higher inflation will also harm the costs of raw materials and other inputs that are utilised by J J
PHILIPPINES INC JOHNSON S FACE POWDER A.

3.1.2.3. Interest Rates

Fluctuations in interest rates may translate into higher or lower costs for the purchase or sale of items
and administrations provided by J J PHILIPPINES INC JOHNSON S FACE POWDER A.

Higher interest rates hurt the disposable cash of consumers.

3.1.2.4. Unemployment Rate


A high unemployment rate is also unadvisable as it dissolves dispensable income of consumers, and will
harm J J PHILIPPINES INC JOHNSON S FACE POWDER A ’s position.

The high unemployment rate will lead to lower sales for J J PHILIPPINES INC JOHNSON S FACE POWDER A
and impact its overall profitability and revenues.

3.1.2.5. How can the J J PHILIPPINES INC JOHNSON S FACE POWDER A decrease the risk of economic
instability?

J J PHILIPPINES INC JOHNSON S FACE POWDER A can work towards building economies of scale

Maintaining business costs and controlling the final price of the product can also help J J PHILIPPINES INC
JOHNSON S FACE POWDER A fight economic instability

J J PHILIPPINES INC JOHNSON S FACE POWDER A can also work towards building a sustainably managed
workforce

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3.1.3. Social

Social influences will stem from social components of the macro environment. Under the PESTEL
Analysis, they can influence J J PHILIPPINES INC JOHNSON S FACE POWDER A in several ways:

3.1.3.1. Social patterns and consumer behaviour

Social patterns affect work trends and patterns and are directly related to the behaviours of consumers.

Social patterns also have a direct influence on buyer tastes and inclinations, and the specific kind,
structure, and volume of interest for an item or service.

3.1.3.2. Social patterns and changing consumer needs

The checking of social patterns will enable J J PHILIPPINES INC JOHNSON S FACE POWDER A to reposition
its items or administrations to meet the changing desires and needs of consumers.

3.1.3.3. Social trends in education

Social trends of higher education have allowed firms like J J PHILIPPINES INC JOHNSON S FACE POWDER
A to have access to a pool of higher skilled talent – but at the same time, also face a more criticising
consumer base.

Higher education has also made consumers more aware of different product offerings by companies like
J J PHILIPPINES INC JOHNSON S FACE POWDER A.
consumers are also more educated and knowledgeable of different substitutes of a product, as well as
become more readily available at different touchpoints.

3.1.3.4. Social patterns make companies more consumer-centric

Companies like J J PHILIPPINES INC JOHNSON S FACE POWDER A are expected to become more
consumer-centric than product-centric.

Similarly, Market segmentation and consumer grouping are dynamically moving towards measures of
psychographics and lifestyles to understand the consumer more.

3.1.3.5. How can J J PHILIPPINES INC JOHNSON S FACE POWDER A use social aspects for growth?

Use consumer-centric means of segmentation and targeting.

Use consumer-oriented and consumer-based marketing – which use emotional appeals to influence
consumers.

Make products more accessible at different touch points common to target consumers socially.

3.1.4. Technological

The technological factors can influence J J PHILIPPINES INC JOHNSON S FACE POWDER A in several ways:

3.1.4.1. Innovation

The quick pace of technological change at J J PHILIPPINES INC JOHNSON S FACE POWDER A may be
driven through innovation.

Business leadership at J J PHILIPPINES INC JOHNSON S FACE POWDER A tries to push the limits of present
limitations.

3.1.4.2. The advent of the internet and online retailing

The expansion of the Internet and online business has discarded many intermediaries. J J PHILIPPINES
INC JOHNSON S FACE POWDER A can communicate and retail directly to the consumers now, or through
modern intermediaries such as eBay as well, for example.

J J PHILIPPINES INC JOHNSON S FACE POWDER A may also use current social networks to retail and use e-
commerce to boost sales.

3.1.4.3. Social media and business growth


J J PHILIPPINES INC JOHNSON S FACE POWDER A can make use of social media to interact and reach with
consumers

Social media can also be used to reach the target market audience more effectively

Social media is cost-effective and strategically more influential for J J PHILIPPINES INC JOHNSON S FACE
POWDER A

3.1.4.4. Improved value chain network

For J J PHILIPPINES INC JOHNSON S FACE POWDER A, technological innovation can be utilised to build on
competitive advantage through several different ways.

J J PHILIPPINES INC JOHNSON S FACE POWDER A can incorporate less expensive production, improved
access to clients, improved marketing, improvement in product quality, and increased levels of business
intelligence than the competition.

3.1.4.5. Managing technology and the future for J J PHILIPPINES INC JOHNSON S FACE POWDER A

To flourish in a business world that is quick paced and receptive to innovative change, J J PHILIPPINES INC
JOHNSON S FACE POWDER A must stay cautious.

It must be always be updated on any technological developments in the business and industry.

J J PHILIPPINES INC JOHNSON S FACE POWDER A should weary of how the company are probably going
to influence its future attractiveness and profitability.

3.1.5. Environmental

For J J PHILIPPINES INC JOHNSON S FACE POWDER A, the environmental aspects of the PESTEL analysis
may include:

3.1.5.1. Environmental stability and business standards

J J PHILIPPINES INC JOHNSON S FACE POWDER A may be expected to incorporate maintainability


standards into their business methodologies and to help resource allocation choices.

J J PHILIPPINES INC JOHNSON S FACE POWDER A may also be subject to environmental laws – which will
impact and guide its operations to become more environmentally friendly.

3.1.5.2. Environmental stability and budget allocation


Leadership in the J J PHILIPPINES INC JOHNSON S FACE POWDER A must measure the connection
between natural activities and budgetary execution.

J J PHILIPPINES INC JOHNSON S FACE POWDER A also strategically decides and assesses if the
organization have been estimating the monetary effect of natural and social activities.

3.1.5.3. Environmental sustainability

J J PHILIPPINES INC JOHNSON S FACE POWDER A also distinguishes and differentiates explicit zones of
concern and impediments to the coordination of environmental sustainability into corporate
performance and strategy

J J PHILIPPINES INC JOHNSON S FACE POWDER A also gives explicit direction concerning how
organizations can push toward a superior reconciliation of ecological and social activities in their basic
leadership procedures and tasks.

3.1.5.4. Environmental sustainability and business growth

J J PHILIPPINES INC JOHNSON S FACE POWDER A may use environmental issues to adjust financial,
natural and social performance.

Concerns towards the environment will enhance the business image for J J PHILIPPINES INC JOHNSON S
FACE POWDER A.

Environmental sustainability within business goals and strategy will also reflect corporate responsibility
on the part of J J PHILIPPINES INC JOHNSON S FACE POWDER A.

3.1.5.5. Environmental sustainability and improved consumer relations

Consumers will be more inclined towards the use of environmentally sustainable products.

Environmental sustainability in operations works towards improving the bottom line and overall
profitability for the business of J J PHILIPPINES INC JOHNSON S FACE POWDER A.

Improvement of cost management and operations will be observed in the business as well.

3.1.6. Legal

Legal components can influence J J PHILIPPINES INC JOHNSON S FACE POWDER A directly, and can
likewise influence the instruments through which an organization buys its stock or connects with the
client. The J J PHILIPPINES INC JOHNSON S FACE POWDER A should be mindful, for example, of the
following legal aspects:

3.1.6.1. Labour law

Labour law refers to the guidelines in regulations that set up minimum and benchmark conditions.
These include identifying with the work of people.

Labour laws include aspects of minimum working age, least time-based compensation, etc.

J J PHILIPPINES INC JOHNSON S FACE POWDER A must be mindful of these laws in routine business tasks
such as hiring, for example.

3.1.6.2. Discrimination law

Under the discrimination law, J J PHILIPPINES INC JOHNSON S FACE POWDER A must ensure to avoid
episodes of unequal or uncalled for treatment based on an individual's age, inability, sex, national
source, race, religion, and sexual orientation.

J J PHILIPPINES INC JOHNSON S FACE POWDER A should train its human resource management team in
ensuring that there is no:

Unequal hiring

Discrimination in recruitment

Internal discrimination in talent management

Bias in training opportunities

Unfair compensation systems

Prejudiced promotions and succession management

3.1.6.3. Health and safety laws:

Under this, J J PHILIPPINES INC JOHNSON S FACE POWDER A is required to give a protected work
environment to their workers.

Working environment security and wellbeing laws build up guidelines intended to dispense with
individual wounds and injuries from happening in the work environment.

all operations of J J PHILIPPINES INC JOHNSON S FACE POWDER A should be designed to physically and
emotionally safeguard and protect the employees and the labour force employed

3.2. Porter’s five forces

The five forces identified in Porter's model can effect J J PHILIPPINES INC JOHNSON S FACE POWDER A ’s
ability to serve its clients and make a profit.
A change in any of the five forces may regularly require a business unit from J J PHILIPPINES INC
JOHNSON S FACE POWDER A to reassess the market place given the general change in industry data and
dynamics. The general industry appeal and attractiveness.

J J PHILIPPINES INC JOHNSON S FACE POWDER A should apply and centre their skills, plan of action or
business models to accomplish profits above the business average. This may be done in multiple ways,
each distinguished in their application to the forces individually as is elaborated below:

3.2.1. The threat of new entrants

3.2.1.1. Market and industry share

New entrants to an industry bring new potential and a choice to increase the market share and overall
share of the pie that puts pressure on price, costs, and the investment price essential to compete.

For J J PHILIPPINES INC JOHNSON S FACE POWDER A, particularly while new entrants are diversifying
from different markets into the chief industry, they will be able to leverage existing talents and cash
flows to shake up the opposition.

3.2.1.2. Limitation on earning expectation and capability of firms in an industry

The threat of entry in the industry, consequently, puts a cap at the earning capacity and profit capability
for J J PHILIPPINES INC JOHNSON S FACE POWDER A.

While the threat of new entreaty is high, J J PHILIPPINES INC JOHNSON S FACE POWDER A should
maintain their prices or increase funding and investment to discourage new competition.

3.2.1.3. The risk to new entrants because of high entry barriers

The risk of entry in an industry depends upon on the peak of entry barriers and limitations that are a
blessing for players such as J J PHILIPPINES INC JOHNSON S FACE POWDER A and on the response that
new entrants can count on from existing players.

If entry barriers are low and novices count on little retaliation from the entrenched competition, the
chance of entry is high, and profitability for J J PHILIPPINES INC JOHNSON S FACE POWDER A will be
moderated.

It is the danger of entry, not whether the entry of new players takes place that holds down profitability.

3.2.1.4. Some barriers to entry for new entrants in favour of J J PHILIPPINES INC JOHNSON S FACE
POWDER A :

Capital requirements: a strong barrier to entry as new entrants will require strong financial and resource
cushioning for operations to take off and be sustained.

Economies of scale: a strong barrier to entry as existing players in the industry operate with high
economies of scale, which new entrants will take time to achieve.
Product differentiation: the strong barrier of entry if products within the industry have high levels of
differentiation on which they operate and approach customers.

Access to distribution: a standard barrier to entry since new entrants will have equal access to the
retailers and distributing agents within the industry.

Customer loyalty to established brands: a strong barrier to entry since customer loyalties and
perceptions are emotionally built and strongly enforced as long as the brand continues to deliver on its
core promise and quality.

3.2.1.5. What can J J PHILIPPINES INC JOHNSON S FACE POWDER A do to face this challenge?

Build and invest in marketing to distinctly establish a point of differentiation in customer perception as
well as strengthen customer loyalty.

Invest in research and development to make sure that it continues to have competitive differentiation
from other players at all times.

Focus on building economies of scale in production and sales.

3.2.2. The threat of substitute products or services

3.2.2.1. Substitute form

There are always different alternatives or substitutes for various products that lead an industry.

These substitutes may be direct or indirect– the direct substitutes are the same category products.
produced by different players; indirect substitutes are the ones from different product categories that
can replace the product for J J PHILIPPINES INC JOHNSON S FACE POWDER A.

3.2.2.2. Switching cost to substitutes for consumers

Switching costs for direct substitutes is not very high for consumers.

The per-unit-volume prices may be higher or lower.

This makes the threat of substitute high.

3.2.2.3. Substitute and product benefit

Alternatives to the product or substitutes may not be able to provide the same benefits

May often lead to additional costs incurred.

Switching costs towards alternatives becomes higher, and consumers may not switch to substitutes.
This, in turn, will make the threat of substitutes low.

3.2.2.4. Substitutes and consumer behaviour

From the point of view of the consumer, there are some differences between the ways different products
of the same or similar category are used, but many consumption decisions are a matter of personal taste
- this makes products vulnerable to the threat of other substitutes.

Overall, the threat of substitutes is assessed to be moderately high.

3.2.2.5. How can J J PHILIPPINES INC JOHNSON S FACE POWDER A combat the threat from substitute
products?

Focus on delivering consistently high quality.

Focus on maintaining strong consumer relationships.

Integrate strategic marketing to form an emotional connection with the consumers and strengthen
consumer loyalty.

Invest in pop up stores owned by the company to stock the J J PHILIPPINES INC JOHNSON S FACE
POWDER A brand exclusively, and integrate it with brand characteristics and personality to attract
consumers.

3.2.3. Bargaining Power of Buyers

3.2.3.1. Who is the buyer?

The buyer for J J PHILIPPINES INC JOHNSON S FACE POWDER A is not necessarily the group that
consumes the product – but rather refers to the group of customers that purchases the product from J J
PHILIPPINES INC JOHNSON S FACE POWDER A to either distribute further, retail it, or even consume it.

Hypermarkets and supermarkets, as well as independent retailers and distribution agents to end
consumers, are the core buyers for J J PHILIPPINES INC JOHNSON S FACE POWDER A that make up the
market’s volume.

Supermarkets and hypermarkets, along with many food chains that are concentrated, which increases
the buyer power.

Products are stocked with buyers and retailers by J J PHILIPPINES INC JOHNSON S FACE POWDER A based
on consumer demand.

3.2.3.2. Buyer power and costs


J J PHILIPPINES INC JOHNSON S FACE POWDER A will not experience switching costs for switching buyers.

Multiple product offerings by buyers also increase buyer power.

3.2.3.3. Retail product differentiation

Products offered by retailers are differentiated based on several characteristics – not only reliant upon
product characteristics but also consumer segment characteristics. Because of this, retailers are
expected to offer a wide range of the same product category. This works towards negating and
weakening the overall buyer power.

Buyer power is assessed to be moderate to high.

3.2.3.4. What can J J PHILIPPINES INC JOHNSON S FACE POWDER A do to ensure risks against high buyer
power?

J J PHILIPPINES INC JOHNSON S FACE POWDER A can focus on differentiating its product and increasing
its demand with the end consumers through different marketing tactics, this will increase the demand of
the product with different buyers, and will work towards moderating buyer power.

J J PHILIPPINES INC JOHNSON S FACE POWDER A should employ economies of scale to manage costs of
production. If it offers products at moderate prices to buyers, it will again be able to attract a large
number of buyers for its product, and in this way, will be able to break off the high bargaining power.

3.2.4. Bargaining Power of Suppliers

3.2.4.1. Who is the supplier?

Supplier power refers to the power that is held by the suppliers in terms of pricing of the raw materials
and inputs used for the business.

3.2.4.2. Sources of production for J J PHILIPPINES INC JOHNSON S FACE POWDER A

The main sources for production are the following:

Supplies from vendors – sourcing from independent suppliers.

Own manufactured equipment and resources: this model is practised by companies that are well
integrated backwards and forwards.

3.2.4.3. Independent suppliers

For J J PHILIPPINES INC JOHNSON S FACE POWDER A, there are numerous independent suppliers within
the industry, and all comprise of a few pretty small operations that lead to weakened overall supplier
power.

Independent sellers and suppliers, however, can locate different opportunities and invest in alternative
markets – which can be a challenge for J J PHILIPPINES INC JOHNSON S FACE POWDER A.
3.2.4.4. Supply quality and business dynamics

Suppliers can integrate forward into the decision making and business dynamics themselves as well.

Also, to the buyers, the quality of the supplies and the raw materials is of utmost importance.

However, in an industry with a high number of suppliers, J J PHILIPPINES INC JOHNSON S FACE POWDER
A can switch to different suppliers at any time without experiencing any costs of the business.

Overall bargaining power of suppliers is assessed to be moderate.

3.2.4.5. How can J J PHILIPPINES INC JOHNSON S FACE POWDER A deal with the challenge?

Get contracts with multiple suppliers and get resources and raw materials from them accordingly.

Invest in manufacturer controlled production facility to maintain consistency in quality.

3.2.5. Competitive Rivalry among Existing Firms.

3.2.5.1. Nature of fragmentation

The market is highly fragmented, which makes it more competitive.

The market is never too concentrated, and as a result, it has players of varying size of operation – from
very small to big players.

3.2.5.2. Brand management

Producers have begun to make use of brand management techniques and contemporary merchandising
by launching bold brands, label designs and marketing campaigns to become more identifiable to the
public.

3.2.5.3. Diversification

Purchasers and buyers have a wide range of products to choose from, with relatively low switching costs.
These factors tend to intensify rivalry.

Though players in the industry may off niche or premium products, they also continue to operate in the
mass markets at large, which again leads to high competition.

3.2.5.4. High business costs

The high fixed cost and the high bargaining power of the buyers, which can lead to the lowering of the
prices from manufacturers add to the highly competitive nature of the industry.

The overall rivalry is assessed to be high.

3.2.5.5. How can J J PHILIPPINES INC JOHNSON S FACE POWDER A combat rivalry and competitive forces
of the industry?
Focus on research and development to identify market niche as well as to be able to add differentiating
factors t its products. This will increase its shield against influence from competitive forces and their
actions.

Build a strong and loyal consumer base by focusing on quality and marketing strategies.

Focus on capturing new markets – in the same region as well as new regions to avoid saturation of
resources in one market only.

3.3. Pentagonal analysis

3.3.1. The threat of new entrants

3.3.1.1. Restriction into industry

The ease of entry into the industry is restricted.

There are high barriers to entry.

These are government policies, consumer loyalty, brand differentiation etc.

3.3.1.2. Switching costs for consumers

The high number of direct and indirect alternatives available also make J J PHILIPPINES INC JOHNSON S
FACE POWDER A vulnerable to the high threat of substitutes.

Low to negligible switching costs experienced on the part of the consumers and buyers.

3.3.1.3. Profitability

New entrants are attracted to the industry because of high profitability.

If there are high barriers to industry, the industry will continue to maintain high profitability

Low barriers to entry will result in a lower average of industry profits.

Lower entry barriers will also lead to higher operational costs because it will increase the intensity of
competition within the industry.

3.3.2. The threat of substitute products/services

3.3.2.1. Increased competition

High threat of substitutes.


This is because of higher competition.

The higher competition leads to imitation of products and systems.

This imitation makes substitute products similar to each other – as much as possible.

3.3.2.2. The offering of similar benefits

Consumers readily adopt alternative and substitute products.

They offer similar benefits.

They have similar functional benefits and features.

3.3.2.3. Low costs of switching

Consumers often experience a low cost of switching between substitute products.

Low switching costs are also developed because competition often produces at lower operational costs.

Low switching cost results in lower overall product prices for the consumer.

Industry players, therefore, also start competing on aspects of price.

3.3.3. Bargaining power of buyers

3.3.3.1. Market fragmentation

The industry in which J J PHILIPPINES INC JOHNSON S FACE POWDER A operates is highly fragmented.

It has numerous local and international players.

It is not very likely for players in the industry to integrate forward into on-trade or retail businesses.

This results in the players experiencing high bargaining power of the buyers from the market.

3.3.3.2. The concentration of retailing agents

It also results in a high concentration of individual retailing agents.

Retailing is also done through hypermarkets and supermarkets.

3.3.4. Bargaining power of suppliers

3.3.4.1. Backward integration by producers


Backward integration from producers is more commonly observed and seen,

Many players in the industry have their own production facilities for raw materials as well.

The industry has seen a large number of players needing to outsource resources and raw materials.

3.3.4.2. Outsourcing raw materials

This outsourcing is done by third-party manufacturers.

A large number of suppliers present lowers the bargaining power of suppliers.

Players in the industry have low switching costs between suppliers.

Suppliers usually are contracted by producers.

Producers may change suppliers frequently.

3.3.5. Industry rivalry

3.3.5.1. Intensity of competition

There are strong competition and rivalry in the industry.

There is a high number of players.

All players provide similar products.

Switching costs for consumers is low, which increases competition.

3.3.5.2. Differentiation

Platers try to differentiate products on different aspects.

Functional aspects and appeals for all products across the industry remain the same.

Competitors and players use emotional appeals, and modern brand management techniques for
differentiation.

Industry players try to gain consumer loyalty by developing strong emotional bonds and ties.

Figure 1 Pentagonal analysis for J J PHILIPPINES INC JOHNSON S FACE POWDER A Figure 1 Pentagonal
analysis for J J PHILIPPINES INC JOHNSON S FACE POWDER A

3.4. Placement of the business along the industry life cycle

3.4.1. Identifying where J J PHILIPPINES INC JOHNSON S FACE POWDER A is on the Industry Life Cycle
Curve
Identification of the place and placement on the industry lifecycle is important as it will help J J
PHILIPPINES INC JOHNSON S FACE POWDER A make important decisions and strategies for the future.

3.4.1.1. Strategic decision making

Expansionary plans and investment decisions.

Decide on various marketing strategies and tactics for targeting different consumer segments to establish
and establish the product.

Selection of new geographic regions for expansion and exploration of new consumer bases.

3.4.1.2. Budget allocation

Resources and alternative routes for future growth and establishment.

Exploration of different diversification options.

Figure 2 PLC Placement along the Industry Lifecycle curve Figure 2 PLC Placement along the Industry
Lifecycle curve

3.4.2. Introductory stage

3.4.2.1. Firm strength

The industry is in the infancy stage.

Firms are generally small, entrepreneurial and compact during this stage.

J J PHILIPPINES INC JOHNSON S FACE POWDER A will be focused on research and development during
this phase.

3.4.2.2. Financial Position

Looking for investment and funds for growth.

3.4.2.3. Nature of product

Products offered during this stage re doubtful as success and life of the product is unproven and not
known.
J J PHILIPPINES INC JOHNSON S FACE POWDER A will use a focused strategy during this phase to
emphasise the uniqueness of the product.

The product or the brand will have a small market of consumers – known largely as early adopters

Marketing strategies adopted by the company will focus on generating awareness of the product and
therefore, will largely use a functional appeal.

3.4.3. Growth stage

3.4.3.1. Financial position

J J PHILIPPINES INC JOHNSON S FACE POWDER A will require high capital during this stage.

J J PHILIPPINES INC JOHNSON S FACE POWDER A will need investment and funds for launching strategic
marketing campaigns.

Funds will also be required for fuelling physical growth of the company in the form of investment in
equipment and property to facilitate growth.

3.4.3.2. Growth factors

Companies may increasingly encourage economies of scale because of standardisation experienced


during this stage.

Consumer feedback from the introductory phase will be incorporated, and research and development
will be conducted to make appropriate changes in the product design and offering.

Success in this stage for J J PHILIPPINES INC JOHNSON S FACE POWDER A will lead to growing demand,
which in turn will fuel sales demand.

3.4.3.3. Nature of Product

Products in this stage have high growth and high market share.

There is also increasing competition and rivalry in the market – new entrants will enter and compete
looking at the success of products during this stage.

3.4.4. Maturity stage

3.4.4.1. Sales and growth

J J PHILIPPINES INC JOHNSON S FACE POWDER A will experience slowing growth during this stage of the
industry life cycle.

Sales will be expanding, and earning will be growing – however, the rate will be slower than the growth
stage.
Competition from late entrants will be present, and obvious during this stage – who will all try to fight
for J J PHILIPPINES INC JOHNSON S FACE POWDER A ’s share of the market.

3.4.4.2. Strategic Marketing

The marketing strategies must now focus on building loyalty.

Marketing tactics must be strong and should focus on the uniqueness of the product. Increasingly
emotional appeals may be used.

3.4.4.3. Firm size

Firm size is generally larger and is more dominant over players if successful- compared to growth stage.

Innovations continue but are stable and not radical.

3.4.5. Decline stage

3.4.5.1. Industry changes

New technological changes and upgrades may make an industry obsolete.

Players within an industry may also fall back and lose on market share if they do not keep up with
innovations, and investment in research and development.

3.4.5.2. Sales and Competition

Sales during this phase are decreasing at a high rate.

Competing players also exit the industry because of the changes and low demand.

3.4.5.3. Surviving in the decline cycle

J J PHILIPPINES INC JOHNSON S FACE POWDER A may also experience mergers and acquisitions during
this phase.

Diversifications are also most common during this phase as a means of survival.

3.5. Strategic Group Analysis

3.5.1. J J PHILIPPINES INC JOHNSON S FACE POWDER A and strategic group formation

The strategic group analysis will look at an industry’s players' situations in focused conditions and
scenarios.
It will assess different players competing with J J PHILIPPINES INC JOHNSON S FACE POWDER A through
the basic strategic factors that will decide an organization's profitability, similar to how the profitability
will also be impacted and influenced by the competitive nature of the industry.

The strategic group analysis will describe the procedures of every single noteworthy competitor of J J
PHILIPPINES INC JOHNSON S FACE POWDER A along different strategic dimensions.

These dimensions of comparison differentiate players into strategic groupings and must be selected as
the basis of comparison by taking into account industry structure, productivity factors, and the venture
issues being tended to.

3.5.2. Different aspects of strategic grouping

Key strategic groupings of players within an industry can be made based on numerous different aspects,
such as:

Specialization

Brand identification

Push versus pull strategies

Channel determination

Product quality

Technological position

Vertical joining

cost position

Service

Price strategy

Financial or working influence

Parent organization relationship

Government relationship

Despite the various aspects available for comparison of competing players, it is often important to
differentiate strategic groupings of players of aspects of how they compete with each other, and on
aspects of where they compete as well
3.5.3. Procedure for strategic group analysis for J J PHILIPPINES INC JOHNSON S FACE POWDER A

Collect results of the player’s analysis.

Determine aspects of comparison for strategic groupings.

Distinguish the players and pick the most important aspects that separate the players into strategic
groups comparing to the issues being tended to.

Dimensions may include price strategy and product quality.

Group the players: position J J PHILIPPINES INC JOHNSON S FACE POWDER A and rivals along with the
matrix.

Evaluate group mobility and direction. Assess the key purpose of individual organizations competing with
J J PHILIPPINES INC JOHNSON S FACE POWDER A, similar to assessing industry patterns and barriers to
entry/exit to be able to decide potential developments inside and between groupings.

3.5.4. How will strategic group planning help J J PHILIPPINES INC JOHNSON S FACE POWDER A

For J J PHILIPPINES INC JOHNSON S FACE POWDER A, strategic group analysis is important because it will:

3.5.4.1. Strategic industry dynamics

Help in reviewing the strategic dynamics and shifts in the industry.

Identify the closest competition and competing players for the business; help in assessing the strategic
direction of these competing players; and lastly, aid in developing strategies to stay ahead of the
competition.

3.5.4.2. Assessment of market position

The strategic group analysis is also important for J J PHILIPPINES INC JOHNSON S FACE POWDER A
because it will assist in analysing the current market position of players, as well as help in assessing
future strategic moves and directions of the competition in the market.

Assists in evaluating and identifying different underlying factors that will influence the company’s
profitability.

Makes use of standard comparison aspects between different players in an industry to group them as
per strategic directions as well as strategic dimensions.

3.5.4.3. Identification of barriers to entry in an industry

Different strategic dimensions along the matrix of strategic groupings are often characterized by barriers
to entry and exit along the strategic groups’ dimensions, as well as by mobility barriers.
These barriers make it difficult for companies to move along, and in between different strategic
dimensions – often forcing it to stay in place with the same competition.

3.6. Scenario planning

Scenario planning for J J PHILIPPINES INC JOHNSON S FACE POWDER A’s strategic direction will take form
through speculation and contingency form – methods used by the military for strategic planning and
direction.

3.6.1. J J PHILIPPINES INC JOHNSON S FACE POWDER A ’s Utilization of Scenario planning

For J J PHILIPPINES INC JOHNSON S FACE POWDER A, scenario planning comprises of making
suppositions of what's to come, of what will be and how the business condition will adapt, fluctuate,
change, and respond to the future conditions, and changes in the futuristic strategic planning.

3.6.1.1.1. Identify the driving forces of the business:

Changes in the macro environment

Changes in technology

Changes in the economic trade system

Changes in production methods

Changes in consumer demands and tastes

changes in technology and economy

3.6.1.1.2. Identify basic vulnerabilities:

After J J PHILIPPINES INC JOHNSON S FACE POWDER A has identified the possible uncertainties of the
macro environment, J J PHILIPPINES INC JOHNSON S FACE POWDER A should decide on any two only.
These can be:

Changes in technological advancements and developments. These changes can be in the form that the
industry has progressed to install more modern and contemporary technological developments.

Changes in consumer demands and needs.


These two uncertainties of the future are those that will have the largest impact and influence on the
business.

3.6.1.1.3. Develop a scope of conceivable situations:

J J PHILIPPINES INC JOHNSON S FACE POWDER A will now be able to place these two uncertainties along
a matrix.

Depending on the intensity and direction of the uncertainties and vulnerabilities, the business will be
able to chalk out four possible scenarios as probable plans of action for the future. For J J PHILIPPINES
INC JOHNSON S FACE POWDER A, these can be:

Install new technology, or update current technology to be on par with new technology.

Do market research.

Engage in innovative marketing to influence consumers.

Change vertical and backward integrated systems to ensure in-house or out-house production of
technology to stay ahead of the competition.

3.6.1.1.4. Discuss the suggestions:

Each scenario should be discussed in detail.

Possible strategic direction and responses for each scenario should be developed.

Realignment of business goals and direction, as well as a mission during each scenario, should also be
done to ensure future resilience.

4. ANALYSIS OF RESOURCES AND COMPETENCES

This inner analysis and assessment of J J PHILIPPINES INC JOHNSON S FACE POWDER A decide the centre
skills based on the resource based view (RBV) of the premium company.

Utilizing its core capabilities and capacities, J J PHILIPPINES INC JOHNSON S FACE POWDER A can
maintain a competitive distinction, and leadership over other local as well as international players in the
industry.

In the VRIN analysis and assessment, J J PHILIPPINES INC JOHNSON S FACE POWDER A makes use of its
core capacities to strengthen its worth and the to continue to deliver the promise of consistent quality
and taste to consumers – as well as guarantee futuristic and long term gains in the industry.

The following section presents a brief analysis of the VRIN strategic tool as it is applied to J J PHILIPPINES
INC JOHNSON S FACE POWDER A and its impact on the strategic direction.
4.1. VRIN analysis

4.1.1. Valuable

4.1.1.1. International distribution network

The company has an international distribution system with agents and contracts in countries across the
world. This helps the company in making sure that its products are widely available and easily accessible
to all consumers.

4.1.1.2. Experience in expansion to other countries

The experience of expansion to other countries directly as well as indirectly has allowed the company to
gain exposure and experience in international business, culture and trades.

4.1.1.3. Marketing skills

The company has a unique blend of marketing skills, which allows it to reach consumers directly through
various channels, in a creative way. This is a valuable resource for the company as it allows the company
to ward off potential competition.

4.1.1.4. Market research

The company invests in market research regularly, which allows it to stay updated with market trends,
consumer needs, demands, as well as the changes that take place in different markets and consumer
groups. This is also valuable as it then allows J J PHILIPPINES INC JOHNSON S FACE POWDER A to make
changes in product and service offering accordingly.

4.1.2. Rare

4.1.2.1. Use of progressive technology

The company makes use of progressive technology and invests in new technology to help it make the
business more effective and efficient. This is important for maintaining competitive differentiation. The
technology used by the company also allows lower chances of human error and increases precision.

4.1.2.2. Use of progressive harvesting methods


The company makes use of modern as well as new and innovative means of cropping and harvesting as
well. The means of production are important for a business to maintain cost efficiency. This allows lower
levels of spoilt raw materials and enhances the quality as well as the feel of the final product. Also, it
allows the company to maintain the product quality in-house, and maintain consistency in the raw
material.

4.1.2.3. Efficient use of economies of scale in production

The company’s effective and efficient use of resources has allowed it to maintain economies of scale. The
company uses economies of scale as a rare resource available to maintain costs, enhance production,
and increase sales – all the while maintaining a high focus on premium quality and consistency of taste.

4.1.2.4. The uniqueness of product portfolio

The company has a unique and diversified portfolio. This has allowed it to penetrate different consumer
groups. And maintain income from different streams. Into urn, that gives a strong financial cushioning to
the business.

4.1.3. Inimitable

4.1.3.1. Human resource management

The company has taken part in exemplified human resource management in all its function – from
recruitment to training of talent management. This has allowed the company to develop an inimitable
resource that is aligned with the organizational goals, and mission, and which is synonymous to the
organization itself.

4.1.3.2. R&d - new product development

The company’s continued investment in r&d allows it to generate ideas for new products, as well as test
these new products in limited market settings. This allows the company to assess the viability of new
ideas, as well as generate feedback for improvement where needed. This is an inimitable resource for
the company because it has become part of the company’s system and culture.
4.1.3.3. Innovation

The innovation at J J PHILIPPINES INC JOHNSON S FACE POWDER A is an inimitable resource that allows
the company to stay ahead of the competition as well as maintain high leadership in the industry by
having the first mover advantage in its product portfolio continuously.

4.1.3.4. Organizational culture

The organizational culture at J J PHILIPPINES INC JOHNSON S FACE POWDER A is supportive and
innovative. Employees share information freely. The organizational hierarchy is flatter, which makes
leadership and follower relation smooth and easy. This organizational culture and its aspects cannot be
imitated by competition.

4.1.3.5. Cost control

The company has employed progressive means of controlling costs and maintaining economies of scale.
In this way, prices of the products are maintained and controlled, and very few cost increases are passed
to the consumers. This allows the product to be easily affordable by the company’s target audience.

4.1.4. Non-substitutable

4.1.4.1. Brand recognition

The brand value and brand recognition enjoyed by J J PHILIPPINES INC JOHNSON S FACE POWDER A is a
non-substitutable resource. The high brand recognition across different consumer group’s in different
countries allows the brand to enjoy high consumer ship, high sales, and a unique bond with the
consumers. This cannot be imitated at all by the competition as the brand recognition and resonance has
been built over the years through hard work and quality deliverance.

4.1.4.2. Brand equity

The J J PHILIPPINES INC JOHNSON S FACE POWDER A enjoys high brand equity. This has been developed
through the different stages presented by Keller in his model for brand equity. The high brand equity also
reflects a high emotional appeal that J J PHILIPPINES INC JOHNSON S FACE POWDER A has for the
consumers.

4.1.4.3. Emotional affiliation with consumers


This means that the brand fulfils not only functional but also emotional and psychological needs of the
consumers. Again, this is an inimitable resource which the company has developed because of its honest
and trusted relationship with the clients over some time.

4.2. VRIO ANALYSIS

4.2.1. Strong global presence

4.2.1.1. Valuable

Having a strong worldwide presence is significantly valuable for an organization attempting to expand its
size, deals, and piece of the overall industry. It is a competitive and sustainable method to acquire
incomes from new and existing buyers.

4.2.1.2. Rare

J J PHILIPPINES INC JOHNSON S FACE POWDER A is one of the greatest company all inclusive. Even
though there are other worldwide and international chains of competing companies, J J PHILIPPINES INC
JOHNSON S FACE POWDER A has made a distinct name for its quality and offers.

4.2.1.3. Non-substitutable

For the time being, no competition of J J PHILIPPINES INC JOHNSON S FACE POWDER A could match such
an enormous international presence in terms of quality and consistency. It would require critical
investment and assets to achieve this.

4.2.1.4. Organized to exploit

J J PHILIPPINES INC JOHNSON S FACE POWDER A is effectively exploiting this capacity.

4.2.2. Claim to premium products

4.2.2.1. Valuable

J J PHILIPPINES INC JOHNSON S FACE POWDER A offers numerous exceptional and fulfilling products that
different contenders don't offer all the time. J J PHILIPPINES INC JOHNSON S FACE POWDER A
additionally incorporates information and detailed ingredients for its products to interest an assortment
of clients.
4.2.2.2. Rare

Other competition also offers different products that are offered by J J PHILIPPINES INC JOHNSON S FACE
POWDER A, which means that it is not a rare resource for the company. This is because other players
also have access to similar products and portfolios.

4.2.2.3. Inimitable

Considering other businesses and players are now using this capacity as a means of expansion and
penetration, it can, therefore, be imitated.

4.2.2.4. Organized out to exploit

By offering an assortment of choices and ceaselessly changing the portfolio through active innovation
and new product development, J J PHILIPPINES INC JOHNSON S FACE POWDER A is exploiting this
resource. With plenty of alternatives, the vast majority can discover something they like, and individuals
who like to attempt new products and services every now and again can undoubtedly do as such with J J
PHILIPPINES INC JOHNSON S FACE POWDER A.

4.2.3. Upscale brand name

4.2.3.1. Valuable

The J J PHILIPPINES INC JOHNSON S FACE POWDER A brand name enables clients to enjoy and feel a
bond of association with the brand. This allows consumers to feel emotionally attached with the brand,
and experience it as an extension of themselves as well. As such, this becomes a valuable asset for the
company.

4.2.3.2. Rare

J J PHILIPPINES INC JOHNSON S FACE POWDER A is a contemporary brand name that has a premium
touch to it and is upscale, modern and lively. Most other companies and competing brands don't have
the quality and packaging to urge clients to engage in a way they do with J J PHILIPPINES INC JOHNSON S
FACE POWDER A.

4.2.3.3. Non-substitutable
It would be generally simple for other companies to revamp their packaging and duplicate the plan of
action of J J PHILIPPINES INC JOHNSON S FACE POWDER A. In this way, the upscale and comfortable
promise of the offering by J J PHILIPPINES INC JOHNSON S FACE POWDER A could be imitated.

4.2.3.4. Organized out to exploit

J J PHILIPPINES INC JOHNSON S FACE POWDER A is effectively using this resource and enhancing the
brand and the brand promise that numerous clients altogether appreciate. The organization is exploiting
the stylish way of life that is right now present in numerous urban communities where the brand’s
products are widely appreciated and consumed.

4.3. Porter’s value chain

4.3.1. J J PHILIPPINES INC JOHNSON S FACE POWDER A: drawing value from VRIN/VRIO

The core competencies and strengths of J J PHILIPPINES INC JOHNSON S FACE POWDER A are
organizational sources and capacities that enable the business to flourish regardless of substantial
challenge and strategic difficulties in local and international markets.

As the VRIO/VRIN analysis have shown and highlighted, the important core abilities depend on
intellectual properties and related propriety data or related technological structures.

Different resources and abilities appeared in the VRIN/VRIO analysis and review that are non-core, and
non-central skills but that help the business and its value chain.

J J PHILIPPINES INC JOHNSON S FACE POWDER A ’s core abilities are strong yet restricted.

In the resource based view, this constraint presents key difficulties, as the organization wards off
competing players from local and international markets.

The core capabilities in the VRIN/VRIO analysis assume critical jobs in J J PHILIPPINES INC JOHNSON S
FACE POWDER A ’s value chain. Considering the resource based view and Michael E. Doorman's value
chain conceptualization, J J PHILIPPINES INC JOHNSON S FACE POWDER A ’s value chain gives reasonable
and tasteful products to target buyers.

The accompanying outline shows the value chain for J J PHILIPPINES INC JOHNSON S FACE POWDER A
and its situation in the bigger value arrangement of the industry:
Figure 3 Value chain for J J PHILIPPINES INC JOHNSON S FACE POWDER A Figure 3 Value chain for J J
PHILIPPINES INC JOHNSON S FACE POWDER A

4.3.2. Value framework

J J PHILIPPINES INC JOHNSON S FACE POWDER A ’s value chain is a segment of the business' value
framework. The value framework is made out of different other value chains of the speciality units of all
associations included, for example, the organization's producers and the remainder of the inventory
network. In the value chain representation, J J PHILIPPINES INC JOHNSON S FACE POWDER A works
directly, as well as through contracted third parties.

4.3.3. Example from value framework for J J PHILIPPINES INC JOHNSON S FACE POWDER A

The organization has an internal transportation system of vehicles for making deliveries to other
companies that are in business with stocking and serving J J PHILIPPINES INC JOHNSON S FACE POWDER
A products – in the local markets.

In this value chain and value framework, J J PHILIPPINES INC JOHNSON S FACE POWDER A ’s competitive
advantage and abilities are distinguished through the VRIO/VRIN assessment are huge in how the
organization's procedures offer some incentive and advantage to the consumers.

4.3.4. Value chain activities

Brief details of J J PHILIPPINES INC JOHNSON S FACE POWDER A ’s value chain are discussed in the next
section:

4.3.4.1. Primary activities

4.3.4.1.1. Inbound logistics

The inbound logistics for J J PHILIPPINES INC JOHNSON S FACE POWDER A refers to producers in different
designated and appointed locations by the company. Also, it also refers to selecting the finest quality raw
materials from in-house production as well as from third-party contractors. These are transported to the
storage sites after which the raw materials are used for producing different products by the company.

4.3.4.1.2. Operations
J J PHILIPPINES INC JOHNSON S FACE POWDER A operates internationally directly or indirectly. The
company has owned offshore shops, as well as stocks its products with other shops across different
countries.

4.3.4.1.3. Outbound logistics

The company has contracted agents in offshore countries and sites to manage product selling. However,
a majority of the products are sold directly to licensed sellers and shops locally as well as internationally.

4.3.4.1.4. Marketing and sales

J J PHILIPPINES INC JOHNSON S FACE POWDER A produces and invests in high quality and premium
products. It also invests in a high level of customer servicing and marketing. All its marketing activities,
however, are based on strong market research and market data.

4.3.4.1.5. Service

J J PHILIPPINES INC JOHNSON S FACE POWDER A invests in customer service to develop customer loyalty
and build strong relations with its clients. The company invests in gaining and incorporating customer
feedback and in solving customer queries effectively.

4.3.4.2. Support activities

4.3.4.2.1. Infrastructure

This includes different departments like management, finance, legal, etc. which are required to keep the
company’s business running.

4.3.4.2.2. Human resource management

The company’s committed and trained workforce is considered to be a valuable and an inimitable
resource that has played a vital role in the success and growth of J J PHILIPPINES INC JOHNSON S FACE
POWDER A the employees of the company are motivated, professional, trained, and work alongside the
company’s mission and goals.

4.3.4.2.3. Technology development


J J PHILIPPINES INC JOHNSON S FACE POWDER A has been commended and celebrated for the use of
effective technology not only production but also to make the overall system of production and sale, as
well as in house production more effective and efficient. Also, the company also uses technology to
communicate and connect with its consumers effectively.

4.3.4.2.4. Procurement

This involves purchasing the raw material for the final product. The company has appointed agents that
work for the company in different countries and regions to purchase consistently high quality raw
material so that the company can produce the finest product qualities for delivering to the consumers.

4.3.4.2.5. Bottom line

The concept of the value chain for J J PHILIPPINES INC JOHNSON S FACE POWDER A helps in
understanding how value is added in each process and stage of the value chain. It also helps to
understand and separate useful activities from those that are not useful as such. This improves the
overall bottom-line of the company and increases the profit margins for the company as well.

4.3.4.3. Virtual chain

4.3.4.3.1. Customer-centrism

Renewed and enhanced way of engaging with consumers.

Installation of sophisticated consumer data management systems.

Made use of artificial intelligence to enhance the value chain.

4.3.4.3.2. Improved technological use

Installed progressive technology for primary and support activities.

The overall purpose is to provide a better experience to consumers.

Allows the company to predict future market conditions, and prepare strategic contingencies
accordingly.

Allows understanding of consumer behaviour and market movements.


4.3.4.4. Generic strategies

Managed to establish core competitive strategy in the market.

Competes in the premium sector.

Does not engage in competition with other cost groups.

Worked towards improving the service of premium target groups.

Consumers understand and perceive the brand as a high quality and premium.

The brand is appreciated for its focused strategy and standing.

The brand is appreciated and engaged in for its offerings.

5. INTERNAL ENVIRONMENT ANALYSIS

5.1. Porter’s Strategic Options

Leading organizations such as J J PHILIPPINES INC JOHNSON S FACE POWDER A have obtained
sustainable competitive advantage and have had the option to achieve the strategic position.

There can be different sources of sustainable competitive advantage for J J PHILIPPINES INC JOHNSON S
FACE POWDER A. A firm can depend on innovation to decrease its overall production costs and would
then be able to pass this advantage on to its clients.

J J PHILIPPINES INC JOHNSON S FACE POWDER A can also concentrate on making a differentiated item or
administration to increase its overall share of the pie.

J J PHILIPPINES INC JOHNSON S FACE POWDER A can generate considerable sustainable competitive
advantage utilizing these systems. This is done through means of traditional as well as modern
procedures embraced by J J PHILIPPINES INC JOHNSON S FACE POWDER A to competitive advantage
hand and increase its share of the pie.

5.1.1. Differentiation strategy

5.1.1.1. Organizational Leadership

J J PHILIPPINES INC JOHNSON S FACE POWDER A has made use of the differentiation factor to maintain
higher leadership and differentiation from industry competition. Differentiation of effective leadership
may be achieved through different forms and basis.

5.1.1.2. Broad product portfolio

5.1.1.2.1. Product Quality


Moreover, this differentiation can fluctuate from item to item, market to market and industry to industry.
Generally, the essential bases of differentiation are quality, durability, usefulness and in a few consumer
loyalty, and brand image. J J PHILIPPINES INC JOHNSON S FACE POWDER A has differentiated its items
and products dependent on the quality and set a completely different, and engaging consumer
experience. Brand image

5.1.1.2.2. Brand Image

Aside from these things, it has developed a distinct and distinguished brand image which is additionally a
premise of differentiation and encourages J J PHILIPPINES INC JOHNSON S FACE POWDER A to advertise,
promote and market its products and brand better than the competing players in the local and
international markets.

5.1.2. Focus strategy

5.1.2.1. Overall Quality of product and service

The essential premise of differentiation for J J PHILIPPINES INC JOHNSON S FACE POWDER A is quality
and premium taste. It serves just premium quality products, which enables it to charge a top notch and a
premium cost. It has embraced the most astounding measures as far as the nature of its raw materials
used for producing its products. At each progression, J J PHILIPPINES INC JOHNSON S FACE POWDER A
puts forth an admirable attempt to guarantee that its product fulfils the most noteworthy quality
guidelines.

5.1.2.2. Value addition at each step of the value chain

However, the account of value does not finish at getting incredible quality of raw materials. It goes more
remote from that point. A great deal of contrast originates from the readiness. J J PHILIPPINES INC
JOHNSON S FACE POWDER A prepares its product diligently to draw out the quality.

5.1.2.3. Human resource management

Rest of the credit goes to the human resource and employees at J J PHILIPPINES INC JOHNSON S FACE
POWDER A. The brand carefully picks its raw materials - just when they in ideal condition. Products are
tested from each cluster in any event thrice before endorsement. This is how J J PHILIPPINES INC
JOHNSON S FACE POWDER A makes the quality that each client looks forward to, and is excited about.
5.1.3. Leadership and differentiation through cost

Porter’s traditional methodologies are methods for increasing and developing a sustainable competitive
advantage for J J PHILIPPINES INC JOHNSON S FACE POWDER A - as it was, building up the "edge" that
will get the company the ideal position and differentiates it from the industry rivals. There are two
primary methods for accomplishing this inside a cost leadership methodology:

Increasing profits by decreasing expenses, while charging industry-average prices and costs from
consumers

Increasing share of the overall industry by charging lower costs, while at the same time making a
sensible profit on every trade since J J PHILIPPINES INC JOHNSON S FACE POWDER A has controlled and
reduced expenses.

The cost-based strategy and system are that – it includes J J PHILIPPINES INC JOHNSON S FACE POWDER
A being the pioneer regarding cost in the industry and market where it operates. Just being among the
most minimal cost producers isn't adequate, as the company leaves itself wide open to aggressive
attacks by other producers and players in the industry. These players may undermine J J PHILIPPINES INC
JOHNSON S FACE POWDER A’s costs and in this way hinder the company’s endeavours towards the
expansion of its share of the overall market pie.

5.1.3.1. Achieving cost differentiation

Based on this, J J PHILIPPINES INC JOHNSON S FACE POWDER A should be sure that it can accomplish and
keep up the leading position before deciding on choosing the cost leadership strategy. J J PHILIPPINES
INC JOHNSON S FACE POWDER A will be able to become effective in accomplishing cost differentiation by
having:

Access to the capital expected to put resources into innovation that will cut expenses down.

Very proficient coordination’s.

A minimal effort base (work, materials, offices), and a method for economically cutting expenses
beneath those of different competing players.

5.1.3.2. Achieving cost leadership


However, J J PHILIPPINES INC JOHNSON S FACE POWDER A should ensure contingency for imitation by
competition, as well as be prepared for competing payers to imitate its cost-effectiveness strategy to
decrease and control their costs, and increase the overall share of the pie for their products as well. It is
therefore important that J J PHILIPPINES INC JOHNSON S FACE POWDER A does not only settle for one
means of cost leadership but continually improves. This can be done through several different methods:

Engaging and applying the Japanese technique of kaizen

High efficiency

High limit use

Use of dealing capacity to arrange the least costs for generation inputs

Lean production techniques (for example JIT)

Effective creation process

Effective dissemination channels

5.1.3.2.1. Overall Cost Effectiveness through Cost Leadership and Cost Differentiation

Cost differentiation and leadership strategy for J J PHILIPPINES INC JOHNSON S FACE POWDER A will be
based on the nitty-gritty.

Cost initiative endeavours towards slicing expenses to a base to give clients lower costs and in this
manner will help the company of J J PHILIPPINES INC JOHNSON S FACE POWDER A to reserve funds.

Cost leadership strategy requirements regularly identify with high specialized abilities and access to
capital

The company should also resource into innovation and guarantee economies of scale.

5.2. SWOT Analysis

J J PHILIPPINES INC JOHNSON S FACE POWDER A maintains its competitiveness as one of the best and
the most premium locally and internationally through inventive systems that use business strengths in
overcoming the weaknesses present in the business inherently.

Also, they make use of these internal strengths and weaknesses to make use of opportunities and ward
off potential threats, for example, the dangers in the business condition and market.

These factors can be distinguished, assessed, and analysed through the strategic SWOT tool.
The SWOT analysis and review for J J PHILIPPINES INC JOHNSON S FACE POWDER A talk about the
strengths and weaknesses (internal core strategic components) intrinsic in tasks in the business, and for
the J J PHILIPPINES INC JOHNSON S FACE POWDER A organization.

The assessment and analysis of SWOT likewise look at the opportunities and threats (external key
variables) identified with the nature of competitiveness in the market and industry, which is mostly
founded based on the level and intensity of competition and rivalry – as may be gauged through Porter's
Five Forces analysis of J J PHILIPPINES INC JOHNSON S FACE POWDER A.

5.2.1. The need for SWOT because of expanded operations of J J PHILIPPINES INC JOHNSON S FACE
POWDER A

J J PHILIPPINES INC JOHNSON S FACE POWDER A is present and operational in different markets, and
each of the markets poses unique yet various difficulties in developing the business.

J J PHILIPPINES INC JOHNSON S FACE POWDER A and its portfolio in these many markets have expanded
over time and as the organization grows, more items are added to its portfolio in addition to its pioneer
product.

With regards to the SWOT analysis model, these circumstances of multiple operations and multiple
presences in various markets make a difficult business situation where the organization needs to utilize
various arrangements of skills that match different markets.

Core elements of different nature – both internal and external to the organization, can help increment J J
PHILIPPINES INC JOHNSON S FACE POWDER A ’s accomplishment in contending with different companies
and other businesses – both locally and internationally.

The SWOT analysis for J J PHILIPPINES INC JOHNSON S FACE POWDER A is presented below:

5.2.2. J J PHILIPPINES INC JOHNSON S FACE POWDER A Strengths (Internal Strategic Factors)

This section of the SWOT analysis model works with the inner variables that the organization can use as
competencies and strengths to address shortcomings and ensure the business against rivalry. For this
situation, J J PHILIPPINES INC JOHNSON S FACE POWDER A ‘primary qualities are:

5.2.2.1. Strong brand image

J J PHILIPPINES INC JOHNSON S FACE POWDER A is one of the world's most premium, well known and
most famous brands.

The organization has a developing populace of steadfast clients, which adds to the soundness of the
business.

5.2.2.2. International distribution network


In the SWOT analysis model, the global distribution network through directly owned subsidiaries, or
contracts with third-party agents further strengths J J PHILIPPINES INC JOHNSON S FACE POWDER A by
supporting activities.

For instance, the organization has a worldwide system of providers that are deliberately chosen
dependent on criteria relating to quality, for example, of raw materials as has been discussed in the
value chain - primary and supporting activities.

5.2.2.3. Strong investment in research and development, and high focus on innovation

The focus on innovation not only keeps the company apart but also facilitates its industry leadership.

The internal core strengths and competent variables recognized in this section of the SWOT analysis of J J
PHILIPPINES INC JOHNSON S FACE POWDER A demonstrates that the business has qualities that advance
strength through expansion and a worldwide production network.

5.2.2.4. Focus on market research

Additionally, the organization steadily expands its business

This is done through contracts with offshore agents and licenses. Also, the company continues to
broaden its portfolio by adding new products based on market research and consumer data.

5.2.3. J J PHILIPPINES INC JOHNSON S FACE POWDER A Weaknesses (Internal Strategic Factors)

Business weaknesses or shortcomings are recognized in this part of the SWOT analysis. Shortcomings are
inward factors that diminish or cut off business capabilities and strengths. J J PHILIPPINES INC JOHNSON
S FACE POWDER A shortcomings are as per the following:

5.2.3.1. Premium prices for most portfolio products

J J PHILIPPINES INC JOHNSON S FACE POWDER A has a premium brand image attached, and thus all its
products in the portfolio are priced highly

This expands overall revenues yet decrease the affordability of its items.

This internal key factor is a shortcoming since it confines the organization's share of the overall industry,
particularly in territories with generally lower disposable earnings

5.2.3.2. Standard and benchmarked regulations and business procedures for all portfolio items

5.2.3.2.1. Generalization
Likewise, this SWOT analysis highlights that generalized standards for all portfolio products may be a
weakness because it restrains the adaptability of these products and items in the business.

5.2.3.2.2. Imitability

What's more, numerous J J PHILIPPINES INC JOHNSON S FACE POWDER A items are imitable.

Several items in the portfolio have been imitated by completion, and are also being provided by them at
different price points.

Though the quality is unique to J J PHILIPPINES INC JOHNSON S FACE POWDER A, the competing players
have also developed close enough, and acceptable products.

This business condition engages competition, as has been highlighted already.

5.2.3.3. Fighting the challenge of imitation

The internal factors in this section of the SWOT analysis of J J PHILIPPINES INC JOHNSON S FACE POWDER
A demonstrate that the business must create qualities to diminish the unfavourable impacts of
impersonation and the impact of high value focuses on the organization's share of the overall industry in
the international and local business.

5.2.4. Opportunities for J J PHILIPPINES INC JOHNSON S FACE POWDER A (External Strategic Factors)

This section of the SWOT analysis and strategic model focuses on external components that
opportunities for business development and advancement. For this situation, the key opportunities
accessible to J J PHILIPPINES INC JOHNSON S FACE POWDER A are:

5.2.4.1. Green business products

With an increased focus and awareness of health and wellness lifestyles by consumers, it is important
that J J PHILIPPINES INC JOHNSON S FACE POWDER A recognizes this as a viable business opportunity.

Increased numbers of consumers are shifting to the green lifestyle of consuming environmentally
friendly and organic products.

J J PHILIPPINES INC JOHNSON S FACE POWDER A should focus on the expansion of the product portfolio:
inclusion of green products and environmentally sustainable services are suggested.

5.2.4.2. Expansion in emerging markets

J J PHILIPPINES INC JOHNSON S FACE POWDER A can expand its income streams through expansion and
developing presence in emerging markets – such as Brazil, China and India.

This opportunity draws consideration far from the U.S. region, where the majority of the organization's
incomes are created.
5.2.4.3. Business enhancement

Likewise noteworthy in this SWOT analysis of opportunities is the opportunity of business enhancement
and further business development.

This can help improve the long term position of J J PHILIPPINES INC JOHNSON S FACE POWDER A.

For instance, through higher diversification of the portfolio and the overall business, the J J PHILIPPINES
INC JOHNSON S FACE POWDER A organization can diminish its reliance on its present enterprises, and
along these lines work towards improving its general income development.

5.2.4.4. Partnerships with different firms

5.2.4.4.1. Diversification through Partnerships

Diversification is right now a minor strategy as can be observed from J J PHILIPPINES INC JOHNSON S
FACE POWDER A ’s competitive strategy and its overall directive strategy as well.

The business environments likewise display the chance to enhance the organization's competencies and
strengths

This will also increase its share of the overall industry through the association’s s with different firms. For
example, a partnership with real retailers improves dispersion.

5.2.4.4.2. Development of corporate clientele

The company can also formulate new B2B relations and contracts with other companies and corporate
entities.

The external key factors in this section of the SWOT analysis demonstrate that J J PHILIPPINES INC
JOHNSON S FACE POWDER A can improve its industry position by building up its activities to make use of
the opportunities in the international business markets.

5.2.5. Threats facing J J PHILIPPINES INC JOHNSON S FACE POWDER A (External Strategic Factors)

Threats against the J J PHILIPPINES INC JOHNSON S FACE POWDER A business are distinguished in this
piece of the SWOT analysis. Threats are external components that decrease or breaking point of business
execution. In this case of J J PHILIPPINES INC JOHNSON S FACE POWDER A, the following section looks at,
and assesses threats that apply to the organization in question:

5.2.5.1. Price wars by competition


J J PHILIPPINES INC JOHNSON S FACE POWDER A competes with a wide assortment of firms in the local
as well as the international market.

For instance, the organization competes against significant premium companies as well as against
cheaper companies that offer cheap priced items and products.

This external but important factor in the SWOT assessment undermines J J PHILIPPINES INC JOHNSON S
FACE POWDER A because such competing players can lessen the organization's share of the overall
industry by competing based on low prices and overall low costs of production.

5.2.5.2. Increased competition

Additionally, this SWOT assessment also analyses increased competition as a noteworthy threat against
the business.

In light of the organization's shortcomings, the risk of imitation includes firms that attempt to duplicate
the taste, look and feel of J J PHILIPPINES INC JOHNSON S FACE POWDER A items.

Saturated market place and industry can also lower sales of the organization and shrink its share of the
overall pie

Increased competition can also lead to the increased cost of doing business for the organization if they
bring innovative processes, and implement novice systems to control costs

5.2.5.3. Independent players

The industry environment and profitability are liable to invite independent developments, and small-
scale players.

These players may not have high levels of integration and may be retailers and marketers for items
produced during backward integration.

Strategic marketing techniques and promotional communications are expected to neutralize the impacts
of these patterns.

This section of the SWOT analysis of J J PHILIPPINES INC JOHNSON S FACE POWDER A recognizes external
key factors that force difficulties to international expansion and growth of the company as well as
highlight market infiltration.

5.3. TOWS Matrix

TOWS analysis will allow J J PHILIPPINES INC JOHNSON S FACE POWDER A to identify and understand the
strategic choices and future strategic options and directions available to the company. The TOWS matrix
and analysis will help J J PHILIPPINES INC JOHNSON S FACE POWDER A to look at various possible future
and long term situations, and ill force J J PHILIPPINES INC JOHNSON S FACE POWDER A to look at these
options by questioning strategic directives such as:
How will J J PHILIPPINES INC JOHNSON S FACE POWDER A make the most of its strengths and core
competencies?

How will J J PHILIPPINES INC JOHNSON S FACE POWDER A Circumvent its weaknesses and shortcomings?

How will J J PHILIPPINES INC JOHNSON S FACE POWDER A capitalize on the various opportunities present
in the business environment?

How will J J PHILIPPINES INC JOHNSON S FACE POWDER A ward off, and manage the threats that are
present in the external business environment?

The analysis of the SWOT and the subsequent assessment and development of the TOWS matrix will
allow the J J PHILIPPINES INC JOHNSON S FACE POWDER A to be able to identify the following answers:

Strengths and Opportunities (SO) – How would J J PHILIPPINES INC JOHNSON S FACE POWDER A be able
to utilize on its strengths to exploit the opportunities?

Strengths and Threats (ST) – How would J J PHILIPPINES INC JOHNSON S FACE POWDER A be able to
exploit its strengths and core competencies to keep away from genuine and potential threats?

Weaknesses and Opportunities (WO) – How would J J PHILIPPINES INC JOHNSON S FACE POWDER A be
able to capitalize on its opportunities to overcome the weaknesses that J J PHILIPPINES INC JOHNSON S
FACE POWDER A is encountering?

Weaknesses and Threats (WT) – How would J J PHILIPPINES INC JOHNSON S FACE POWDER A be able to
limit its weaknesses and evade threats?

5.3.1. TWOS matrix visual presentation

Table 1 TWOS matrix for J J PHILIPPINES INC JOHNSON S FACE POWDER A

J J PHILIPPINES INC JOHNSON S FACE POWDER A

TWOS Matrix Strengths

Leading premium company that operates internationally

Leading presence across countries

Reasonable control over production and distribution due to backward and forward integration

Weakness
Major dependence on the market as the country of origin market

Despite being in operation for decades, has standard procedures and regulations for all portfolio items

Imitability possible by competition

Opportunities

New South Asian and Asia Pacific regions available for expansion – emerging markets

Acquisition of medium-sized similar companies and shops in developing countries

SO strategies

Expanding into Asia Pacific region and stabilizing emerging markets by opening new stores and
developing new products

WO Strategies

Increasing more stores outside the country of origin, and in other parts of the world – especially
emerging markets such as India, China and Brazil

Threats

Increased marketing from competing players, which might affect sales negatively

An increasing number of independent producers and marketers

Increased and saturating competition

ST strategies

Improving the ambience of service, focusing on augmented service levels when providing products and
adapting to local culture.

WT strategies

Increase budget for marketing communications, and strategic promotions and pursue a moderate
expansion strategy

The TOWS Matrix is a moderately basic strategic tool used by J J PHILIPPINES INC JOHNSON S FACE
POWDER A for producing key alternatives and identifying key strategic alternatives that may be pursued
by J J PHILIPPINES INC JOHNSON S FACE POWDER A.
By utilizing it, J J PHILIPPINES INC JOHNSON S FACE POWDER A can take a look towards understanding
that it can best exploit the opportunities present, while at the same time also limit the effect of
shortcomings and ensure itself against threats.

5.4. ANSOFF Matrix

J J PHILIPPINES INC JOHNSON S FACE POWDER A has viably utilized this instrument to develop a
procedure for accomplishing competitive advantage in the industry and various markets it operates in.

Recently, J J PHILIPPINES INC JOHNSON S FACE POWDER A has made use of the four strategies of Ansoff
matric to maintain competitive advantage and leadership position. These strategies are

Market development

Market penetration

Product development

Product penetration

The following section highlights the various strategies that may be used through the Ansoff matrix. These
strategies have been highlighted and identified through vigorous research methodologies, as well as
through expert analyst data and opinion.

5.4.1. Market development strategies

5.4.1.1. Advertising and promotion of products

One of the most popular means of developing a market is to use marketing strategically.

By making use of advertising and marketing communications, the company will be able to disseminate
information about its product, and the various benefits of consumption to its target market easily.

Also, the use of social media for marketing will, at the same time allow the company to communicate
directly with the consumers, and answer their queries.

5.4.1.2. Education about product consumption.

The company can make use of widespread marketing campaigns using traditional means as well as
means of social media to increase awareness of their product amongst the target market.

This task of educating the markets will give the company a first-mover advantage, as well as develop
important functional appeals for the product.

5.4.2. Market penetration strategies


5.4.2.1. Geographical expansion

The company can expand into other markets through its previous experience, as well as through
partnerships and contracts with other agents and parties.

The company can also develop subsidiaries, as well as offer its products through franchising as well as
licensing.

The geographical expansion is suggested into emerging economies because of the favourable income
levels of the consumers, as well as the growing infrastructure.

5.4.2.2. Increased number of retail outlets and retail presence

The company can penetrate existing markets by offering more shops or making its product more widely
available.

This may be done through increasing the accessibility of the product at places where the target
consumers are expected to purchase from, as well as improving the interaction of the product with
consumers at different touchpoints.

5.4.2.3. Online retailing

Another means of improving market penetration is through online retailing. J J PHILIPPINES INC
JOHNSON S FACE POWDER A can stock its products on online retailing sites locally and internationally.

This would help the company improve sales, accessibility, as well as reach higher levels of target
consumers. All of this, in turn, would increase market penetration.

Besides, it would also help the company maintain and control costs for J J PHILIPPINES INC JOHNSON S
FACE POWDER A, and thereby help it achieve cost leadership in the industry

5.4.3. Product development strategies

5.4.3.1. Research and development

To be able to develop new products, the company should have a focused interest and budget sending
allocated to new product research and development.

This research would take a basis in the consumer market and the overall market trends, to identify the
gap in consumer demands, and market availability of different products.

The new product would then generally be aimed towards fulfilling this gap.

5.4.3.2. New product development labs

The company should have dedicate incubation labs for the development of new products.
This means that this development should be a focused and separate entity that should focus on the
company’s innovation.

The company should also hire the right talent for business development and innovation to be able to
achieve targets and goals accordingly.

5.4.3.3. Market testing

New products should follow PD cycles for testing before launching in a market.

This will ensure that the company can fix any loopholes present in the product, as well as incorporate
positive feedback.

5.4.3.4. Strategic Marketing

The company should also have a focused and strategic budget for marketing and communications
allocated for new product development.

This is because the company will need to increase the appeal, as well as develop functional and
emotional appeals and characteristics of the new product.

Communicate with the consumers to enhance sales as well as increase likeability and rate of
consumption and trial.

5.4.4. Product penetration strategies

5.4.4.1. Acquiring personally owned retail to strengthen its presence.

One way of increasing product penetration is that the company directly manages and controls sales
operation through owned retail.

This will give the campy leverage over communication, as well as product stocking and placement.

5.4.4.2. Diversification of portfolio

The company can further expand its portfolio as a means of product penetration.

The expansion of the portfolio will allow the company to reach a different and diverse target group,
thereby increasing the overall share of the pie for the company

This will also increase J J PHILIPPINES INC JOHNSON S FACE POWDER A ’s products’ accessibility to
different consumers.

5.5. SAF criteria


5.5.1. How J J PHILIPPINES INC JOHNSON S FACE POWDER A can strengthen its strategic position using
SAf criteria

When J J PHILIPPINES INC JOHNSON S FACE POWDER A is deciding upon a certain strategic direction for
the future, it will face challenges.

Choosing the right strategy at the right time can be a daunting task for managers.

It is therefore important that managers look at the strategy from aspects of its value and viability.

The principal thing the managers of J J PHILIPPINES INC JOHNSON S FACE POWDER A will have to do is
settle on a foundation by which to evaluate the different strategic alternatives.

They will also need to choose a viable methodology is to assess the different strategies independently.

Strategies can be evaluated and assessed using criteria of suitability, acceptability and feasibility (SAF).

The following section weighs different strategies and possible future directives for J J PHILIPPINES INC
JOHNSON S FACE POWDER A based on the SAF criteria.

5.5.2. Creation of a menu for high-income groups

5.5.2.1. Suitability

5.5.2.1.1. New market development

This strategy is suitable because it will allow J J PHILIPPINES INC JOHNSON S FACE POWDER A to develop
new markets by tapping into new consumer groups.

At the same time, it will allow the company to penetrate higher into existing markets.

Both these possibilities can be realized because J J PHILIPPINES INC JOHNSON S FACE POWDER A invests
in consumer research and has a strong financial standing.

5.5.2.2. Acceptability

5.5.2.2.1. Alignment with organizational goals

The strategy is acceptable because it is in line with the company’s goals and mission.

Also, it is also in line with the internal marketing and culture of the organization.

5.5.2.2.2. Financial risk

As such, the strategy does not pose any risk – financially and otherwise and is also palatable for
stakeholder reactions.

Lastly, the strategy promises to give high returns. Overall, the strategy appears to be highly acceptable.
5.5.2.3. Feasibility

5.5.2.3.1. Market research and financial cushioning

This strategy is highly feasible.

This is because the company already operates along with this mission, and has high levels of market
research and information regarding high-income groups.

This information could be utilized for creating a suitable menu for high-income groups.

At the same time, the company also has the financial power to introduce premium menu items for the
higher class – to expand its menu accordingly.

5.5.3. Creation of a healthy menu for existing target consumer groups

5.5.3.1. Suitability

5.5.3.1.1. Diversification of product portfolio

This strategy would require a high diversification of the product portfolio.

This is suitable because the company has the resources and the information to make strategic decisions
about diversification.

5.5.3.1.2. Innovation

Moreover, the company also innovates regularly, which can be an added benefit for the suitability of the
strategy.

5.5.3.2. Acceptability

5.5.3.2.1. Risk of financial investment

This strategy appears to be moderately acceptable.

This is because it poses a risk through diversification with high levels of finances invested, the company
can never be too sure of the consumer reactions.

5.5.3.2.2. Risk of new product development

Therefore, the risk of new product development and consumer reaction would be there.

Also, the acceptability is also low because of stakeholder reaction – who might not all agree with the
expansion of the portfolio horizontally – i.e. The broadening of the portfolio away from the core
offerings.

Lastly, if the strategy works, it promises high returns, which make sit low to moderately acceptable.
5.5.3.3. Feasibility

5.5.3.3.1. Market research and financial cushioning

This strategy is also feasible for the company.

This is because of the company’s strong financial position, as well as its ability to researching into
different market trends and patterns.

The identification of these trends and patterns is important for being able to decide which market and
industry to diversify into for the company.

5.5.4. Increasing existing advertising expenditure

5.5.4.1. Suitability

5.5.4.1.1. Focused budgeting

This strategy is suitable because the company has high and focused budgeting for marketing and
communications.

This would also allow J J PHILIPPINES INC JOHNSON S FACE POWDER A to withdraw from failing markets
or markets that have a weak share, and gain access to rising markets.

5.5.4.1.2. Strategic marketing

The company will be able to exploit its research and development for strategic marketing

J J PHILIPPINES INC JOHNSON S FACE POWDER A will also make use of existing systems and products to
reach new consumer groups through marketing.

5.5.4.2. Acceptability

5.5.4.2.1. Return on investment

The strategy is acceptable because it poses a low risk in terms of investment in strategic marketing.

Also, it promises high returns on investment in marketing through the promise of increased awareness,
increased penetration, increased brand recall and brand recognition – all of which will translate into
higher sales.

Lastly, stakeholders will also not frown upon this strategy, which makes it more acceptable to implement.

5.5.4.3. Feasibility
5.5.4.3.1. Market research and financial cushioning

The strategy is highly feasible because the company has a strong financial standing.

This means that the company can afford to increases budget for marketing purposes.

However, for the stagey to be successful, it is important that the company aces sure that all promotional
campaigns developed are in sync with consumer needs, demands and behaviour.

This is again possible for the company because of its investment in research and development.

6. FINAL RECOMMENDATIONS

Based on the overall internal and external analysis done for J J PHILIPPINES INC JOHNSON S FACE
POWDER A, this section will offer recommendations which will help the company take on strategic
directions that will enhance its core competencies and capabilities, as well as reduce its chances for risks
and threats? The following recommendations are thus made for J J PHILIPPINES INC JOHNSON S FACE
POWDER A :

6.1. Strengthen distribution network

6.1.1. Control

This is an important strategic recommendation as it will allow higher control to the company over its
products in different markets. The company will be able to control where its products are placed, and
thereby, will also be able to enhance the accessibility and easy availability of its products.

6.1.2. Stronger relation with consumers

At the same time, the strengthening of the distribution network will allow the company to work more
closely with end consumers by being able to reach them with the same high quality of products across
different markets.

6.2. Develop unique marketing tactics

6.2.1. Higher penetration

This strategic recommendation will help the company reach a higher number of consumers and
penetrate deeper into target consumer groups. Also, this strategy will allow the company to increase trial
and consumption and sales of its products.
6.2.2. Forming a partnership with consumers

Unique marketing tactics will involve new and informed strategic means of communicating with the
consumers and engaging them with the brand. One way that this can be done is by making consumer co-
producers for the brand. Another way that J J PHILIPPINES INC JOHNSON S FACE POWDER A can do this is
through co-branding with other similar, yet dissimilar brands and companies to enjoy higher market
visibility amongst target consumers.

6.3. Adapt to different cultural aspects of different markets

6.3.1. Identify different consumer group characteristics

Each market and target group has distinct characteristics. This recommendation is suggested so that the
company can connect better with different target groups in different markets.

6.3.2. Adapt to and respond to characteristics

By adapting to different cultural and regional characteristics, the company will be able to present itself
better to target consumers – who would then feel a greater affinity, and more likeliness of consuming the
product and the service.

6.4. Expand into new regions

6.4.1. Market expansion

Another strategic recommendation for J J PHILIPPINES INC JOHNSON S FACE POWDER A is to expand into
newer regions and markets. This can be done by expanding into new markets, firstly. This expansion will
give the company exposure to new consumer groups. Increase the overall consumption rate, as well as
diversify income streams. Also, it will give the company related expansion exposure regionally as well as
internationally.

6.4.2. Product diversification

Another means of expansion is through product diversification. By adding new products, the company
will be Abe to penetrate deeper into existing markets bye exploring new consumer groups, and new
target consumer groups. This will also diversify income streams for the company, and increase its overalls
hare of the market.
6.5. Strengthen value network

By strengthening the value network further, and by adding quality and enhanced elements at different
stages, the company will be able to maintain competitive advantage, as well as put off new players from
the industry by increasing barriers to entry. This will allow the company to maintain sustainable
competitiveness over other players, as well as maintain a possible leadership position in the local and
international markets and industry.

7. References

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