MADARA Cosmetics: Structure, Strategy, And PEST/SWOT Analysis

This report discusses the structure, organisational design, and strategy of MADARA Cosmetics. MADARA Cosmetics has become one of the biggest brands in the field of eco cosmetics in Latvia in very short period of time.

All products of MADARA Cosmetics are manufactured from 100% natural plants and herbs and developed in laboratories of MADARA Cosmetics.

PEST analysis and SWOT analysis tell about the new technologies for business growth and strengths, weaknesses, opportunities, and threats for the MADARA Cosmetics.

About MADARA Cosmetics

MADARA Cosmetics is a Latvian company which was founded in 2006 by Lotte Tisenkopfa-Iltnere (Madaracosmetics, Founders, 2018). It is one of the biggest brands in the manufacturing of organic skin care products. It started from four founders in 2006 and now has more than 99 employees in 2018. In the field of cosmetics MADARA brand represents a local pioneer (Madaracosmetics, Madara Organic Skincare, 2018).

MADARA Cosmetics is offering more than 80 products. Each and every product of the MADARA cosmetics is manufactured and developed in its own laboratories of MADARA cosmetics. It has the 100% control over all its processes. MADARA cosmetics have passion for the perfection and quality in every single detail as proved by the ECOCERT certification. MADARA cosmetics is exporting its brand products in all over the world and also giving contracts for the manufacturing services (Nasdaq, 2017).

All the decisions and actions of the company are taken by the board of “MADARA Cosmetics”. Board has all responsibilities of maintaining proper accounting records, making decisions and reasonable steps for safeguarding the assets of the organization, and also preventing and detecting the company from fraud and other irregularities. Financial statements are also prepared by the board of the company. The company is expecting a growth rate of 30% for 2018, which will result in turnover of EUR 10 million. (Madaracosmetics, Affordable Luxary In a Growing Market sector, 2017).

MADARA Cosmetics’ mission is focused on producing eco cosmetics that are 100% natural. All products are manufactured from plants of Latvia, one of the greenest environments and has suitable climate for growing vulnerary plants (Nasdaq, 2017). MADARA Cosmetics has adopted creative processes for the development, packaging, and designing of products to sustain in the competitive environment. Company is now focusing on developing shareholder benefit program. Its main strategy is to gain growth while keeping eye on profit margins (Nasdaq, 2017).

Entire products range of MADARA Cosmetics is manufactured from 100% natural plants of Latvia. This cold and harsh northern climate has evolved plants that have extraordinary properties. These plants have properties of healing wounds and saving lives. MADARA Cosmetics have adopted this idea from ancient history that nature has solution for all our problems and has everything that we need (Madaracosmetics, ESG Report, 2018).

PEST analyses describe new opportunities for the organization by changing business environment. Legal factors decides how a company will operate, cost and demand of its products. The consumer protection law gives right to consumers for choosing product that fit their purpose and product quality too. This makes MADARA Cosmetics to manufacture products that are suitable for customers and of high quality. Tax rate also has major impact on the organization. Higher tax rate will affect the cost structure of MADARA and its cash positions too. Economic factors mainly affect purchasing of consumers such as unemployment rate, interest rate, economic growth rate and so on (Mindtools, 2018).

SWOT analyses tell about the strengths, weaknesses, opportunities and the threats of any organization. After conducting the SWOT analyses for the MADARA Cosmetics, following strengths, weaknesses, opportunities and the threats are discovered for the company:

MADARA Cosmetics manufactured all its products from the high quality raw materials obtained in the Baltic region, therefore these products are 100% natural. Company has high skills in marketing as it promotes products by own through e-commerce web stores (Jansone-Slava, 2017).

One of the weaknesses of the organization is that it’s been in the market for very short period of time. It will take longer time for the company to make its impact internationally. Second disadvantage is expensive price of its products because all its products are 100% natural ingredients (Jansone-Slava, 2017).

Company has large number of opportunities for its business growth as it has created a new technology in  the cosmetic industry by introducing 100% natural products that has super beneficial results for the skin, body, hair and so on (Jansone-Slava, 2017).

Threats to the organization are from the cosmetics that are giving tough competition from the international ecological cosmetics. And another threat is customers have less trust in cosmetic line (Jansone-Slava, 2017).

MADARA cosmetic is focused only on female consumers, so company has to extend its offer to beauty line for men. It will ensure effective functioning of company as it is important to give them chance to see how they control employees, shops and other functions. Second suggestion includes offering loyalty cards to customers as it will develop closer relationship with consumers.

Conclusion

MADARA cosmetics has cerated a high value business in  very short span of time. The company is focused and dedicated to produce products that are manufactured from 100% natural ingredients. All the products of the company are dervied from plants that are grown in  northen climate of Latvia that is suitable for producing extraordinary herbs. These products are safe for consumers. Company is still working to grow its business internationally and providing high quality products to customers.

References

Madaracosmetics. (2017). 2017 Annual Report. Retrieved from Nasdaqbaltic: https://www.nasdaqbaltic.com/upload/reports/mdara/2017_ar_en_eur_00_ias.pdf

Madaracosmetics. (2017). Affordable Luxary In a Growing Market sector. Retrieved from https://cns.omxgroup.com/cds/DisclosureAttachmentServlet?messageAttachmentId...

Madaracosmetics. (2018). ESG Report. Retrieved from issuu: https://issuu.com/madaracosmetics/docs/2017-esg-report

Madaracosmetics. (2018). Founders. Retrieved from Madaraorganicskincare: https://www.madaracosmetics.com/en/founders

Madaracosmetics. (2018). Madara Organic Skincare. Retrieved from madaracosmetics: https://www.madaracosmetics.com/en/about-us

Nasdaq. (2017). MADARA Cosmetics. Retrieved from Nasdaqbaltic: https://www.nasdaqbaltic.com/market/?instrument=LV0000101624&list=6&currency=EUR&pg=details&tab=company

Sauka, A., & Welter, F. (n.d.). Born Green and Global: The Case of Madara Cosmetics.