2012-09-04 11:11:07 - Cosmetics Industry in China - Porter’s Five Forces Strategy Analysis - a new market research report on companiesandmarkets.com

China continues to be one of the largest cosmetic producers in the world. A positive regulatory environment and an upbeat Chinese economy has fueled the growth of the cosmetics industry. Multinationals are consistently expanding operations in China. However, the counterfeit cosmetics still pose as a major deterrent to foreign investment in the industry.

Aruvian´s R´search analyzes The Cosmetics Industry in China in Michael Porter´s Five Forces Analysis. It uses concepts developed in Industrial Organization (IO) economics to derive five forces that determine the competitive intensity and therefore attractiveness of a market. Porter referred to these forces as the microenvironment, to contrast it with the more general term macro-environment. They consist of those forces close to a company that affect its ability

 

 

to serve its customers and make a profit. A change in any of the forces normally requires a company to re-assess the marketplace.

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