country
$20 Bonus + 25% OFF
Securing Higher Grades Costing Your Pocket? Book Your Assignment at The Lowest Price Now!

Business Level Strategy: Sephora

tag 58 Downloads6 Pages / 1,460 Words tag Add in library Click this icon and make it bookmark in your library to refer it later. GOT IT

Question:

Describe and discuss the major management functions of planning, organizing, leading, and controlling in Sephora organisations?
 
 

Answer:

Overview of the company

The company was founded in the year 1970 in France. The company has more than 100 brands in the company with 1800 stores spread over 30 countries. The company has a customer base of over 6 million and has 27000 employees working in the various branches spread across the world (Wearesephora.com, 2015).

The innovation objectives

The competition and demand and markets- the company by offering large number modern brands and also excellent customer services so that the company can attract a wide young customer base. The sales associates of the company mainly focus on the color, skin care and fragrances of the products. They often try to cross sell the products (prezi.com, 2015).

Production along with delivery- the company changed the sales policy so as to attract many customers. The company also took the initiative to reduce the cost of operation and also the cost of labour.

The company tries to employ a more number of managers who are brand centric and their stores are based in the centre of the big cities. The company has an organizational structure which is traditional in nature. The exception is that two of the marketing SVPs reports to the CEO directly.

Organization workplace- the company tries to connect the various business activities among the network partners for sharing of the knowledge. The company believes that one company does not need to follow the herd if it is under the umbrella of a big brand (Schweiger, 2008). The company becomes stronger if it adopts the culture of the place in which the company is operating. It gives the company individuality and thinking in a fresh way and also to generate unexpected ideas.

Marketing strategy of the company

Sephora is one of the widely recognized cosmetic retailers in the world. Recently it has integrated a digital marketing scheme in their overall marketing strategy. The company has a single executive who looks after the both the marketing and digital sectors. It was one of the first companies in the world to sell prestigious cosmetics. The company allowed the customers to touch and use the product in the same location (beauty, 2014). In the year 2007 the company opened its website making the company an early entrant in the e-commerce market. The company continuously tries to make commitment to the customers and educates the clients. The company took the digital far beyond the product specifications and shopping carts; but they also built  a system which could give the customers a better access to the image of the products, more information and clarity (Mullins and Walker, 2013). The website also gives an opportunity to the customers to communicate with the company and also with each other. The company plans to introduce new products every month in the first year of its operation.

Financial strategy of the company

The growth strategy of the company is that it plans to capture the 10% of the Australian cosmetics market which is $4 billion industry. The company plans to do that by offering lower prices and new brands as well as the self service to attract the younger generation in their stores. The sale if their product is expected to reach from $225 million to $250 million and the market share of the products will reach double digits in the next four- five years. The store Is planning to open 20 new stand alone stores in the country (Loeb, 2013).

 

The industry environment of the company

The industry environment of the company can be discussed with the help of the Porter’s Five Forces Framework.

The threat of entry- the threat of new entrants in the market of cosmetics is low since the entry requires a huge investment in capital, inventory as well as an efficient distribution channel. It also requires good relationships with a large number of brands. Thus the threat of new entry in the market for the company is low (Harvard Business Review, 2014).

The threat from suppliers- the supplies of the company has low bargaining powers as the company features products from a large number of brands and the company also has its own private label. Moreover the suppliers have to comply with the supplier’s code of conduct in order to carry out the supply. This is done so as the supply chain of the company is transparent (The Business of Fashion, 2013).

Threats from the buyers- the customers buy beauty products from three different types of shops they are department stores, retail stores like Sephora and drug stores. Since the switching over cost is low in the beauty industry, the customers do not stick to the same store. They go to places which offer lower cost products rather than the higher cost that are offered in Sephora.

Threats from the substitutes- there are no close substitutes of Sephora as the customers will not be able to make a wide range of products in their home and the sources are limited.

Competitive rivalry- the competition of the beauty products is huge in the market. Some of the competitors of Sephora are Societe De Distribution Aeroportuaire, MH Muller Handels etc in France. These are certain country specific competitors and the company operates globally.

Business Level Strategy of the company

The current business level strategy of the company is based on the differentiation. This strategy provides the customers convenience and also pressure free shopping (Harvard Business Review, 2014). The company allows the customers to walk through the store and choose the products they want, rather than the traditional system where the customers had to interact with the salesperson. Since the company endorses a wide range of products, the customers will be able to find whatever they need. The company has different structures which are functionally different and meets the specification of each of the countries (Fortenberry, 2013).

Price discrimination in different markets

The most obvious price differences are in the company’s own brand, Sephora Natural Volume Mascara, the price of which in US is $US12.84  or $US12 which includes an average sales tax of 7%, when this price was changed into Australian dollars it was $15.66. The same product was selling in its Sydney flagship store at $25 including GST, making it a massive 60% more expensive than the US (Dixon, 1960).

Another example is the Formula X Nails, a brand owned by Sephora, which was selling in the US for $US11.24 including tax, which was $13.70 Australian dollars. But the product was selling in Sydney at $20, which made the product more expensive in the US by 46%

Conclusion and Recommendations

It can be said that the innovative process takes time to become successful. Moreover it also takes money and resources, innovative ideas. The company needs to establish new ideas and see whether the ideas are feasible. The ideas must be implemented in a test run so that the people can experience them and give their expert opinions and then only the ideas are to be put in the market. The old concept of the sales representatives is gone and the concept of beauty advisors has emerged in the market who offers ideas and advices. It is a place where the personal beauty can be accessed (Furrer, 2011).

 

References

beauty, S. (2014). Sephora's big plans to bring Australian blokes to beauty. [online] The Sydney Morning Herald. Available at: https://www.smh.com.au/business/retail/sephoras-big-plans-to-bring-australian-blokes-to-beauty-20140609-39srv.html [Accessed 28 Feb. 2015].

Dixon, B. (1960). Price discrimination and marketing management. Ann Arbor [Mich.]: Bureau of Business Research, School of Business Administration, the University of Michigan.

Fortenberry, J. (2013). Nonprofit marketing. Burlington, MA: Jones & Bartlett Learning.

Furrer, O. (2011). Corporate level strategy. London: Routledge.

Harvard Business Review, (2014). How Sephora Reorganized to Become a More Digital Brand. [online] Available at: https://hbr.org/2014/06/how-sephora-reorganized-to-become-a-more-digital-brand/ [Accessed 28 Feb. 2015].

Lipczynski, J. and Wilson, J. (2004). The economics of business strategy. Harlow: FT Prentice Hall.

Loeb, W. (2013). Sephora: Department Stores Cannot Stop Its Global Growth. [online] Forbes. Available at: https://www.forbes.com/sites/walterloeb/2013/04/18/sephora-department-stores-cannot-stop-its-global-growth/ [Accessed 28 Feb. 2015].

Mullins, J. and Walker, O. (2013). Marketing management. New York: McGraw-Hill.

prezi.com, (2015). SEPHORA STRATEGY. [online] Available at: https://prezi.com/sqynjmk01ahv/sephora-strategy/ [Accessed 28 Feb. 2015].

Schweiger, M. (2008). Sephora, the beauty authority. New York: Collins.

The Business of Fashion, (2013). Inside Sephora’s Branded Beauty Strategy - The Business of Fashion. [online] Available at: https://www.businessoffashion.com/2013/09/marc-jacobs-sephora-lvmh-branded-beauty-strategy.html [Accessed 28 Feb. 2015].

Wearesephora.com, (2015). The Sephora Saga | We Are Sephora. [online] Available at: https://www.wearesephora.com/Home/Page/Id/2-the-sephora-saga.sls [Accessed 28 Feb. 2015].

Yin, E., Duan, L. and Fong, N. (2010). SEPHORA. 1st ed. [ebook] Available at: https://www.sfu.ca/~sheppard/478/syn/1147/Group_C.pdf [Accessed 28 Feb. 2015].

Download Sample

Get 100% money back after download, simply upload your unique content* of similar no. of pages or more. We verify your content and once successfully verified 100% value credited to your wallet within 7 days.

Upload Unique Document

Document Under Evaluation

Get Credits into Your Wallet

*The content must not be available online or in our existing Database to qualify as unique.

Cite This Work

To export a reference to this article please select a referencing stye below:

My Assignment Help. (2016). Business Level Strategy: Sephora. Retrieved from https://myassignmenthelp.com/free-samples/business-level-strategy-sephora.

"Business Level Strategy: Sephora." My Assignment Help, 2016, https://myassignmenthelp.com/free-samples/business-level-strategy-sephora.

My Assignment Help (2016) Business Level Strategy: Sephora [Online]. Available from: https://myassignmenthelp.com/free-samples/business-level-strategy-sephora
[Accessed 06 July 2020].

My Assignment Help. 'Business Level Strategy: Sephora' (My Assignment Help, 2016) <https://myassignmenthelp.com/free-samples/business-level-strategy-sephora> accessed 06 July 2020.

My Assignment Help. Business Level Strategy: Sephora [Internet]. My Assignment Help. 2016 [cited 06 July 2020]. Available from: https://myassignmenthelp.com/free-samples/business-level-strategy-sephora.


Getting nightmare regarding pending chemistry assignment? Then it is high time you consider hiring chemistry assignment help service of MyAssigemnthelp.com. We at MyAssignmenthelp.com deliver quality subject specific assistance on more than 100+ subjects. For us, students' need is foremost, and we work round the clock to offer science, humanities and commerce assignment help. Among Commerce wing, our one of the most popular services is capital budgeting assignment help. In science segment, we have gained popularity with biology assignment help.

Latest Management Samples

HI6026 Audit, Assurance And Compliance For Sustainable Sales In Food

Download : 0 | Pages : 12

Answer: Introduction “Woolworths Group” is recognized as one of the leading Australian data manufacturer with its operations in both New Zealand and Australia. The company is known for being the second largest in terms of its revenue ranking next to “Perth-based retail-focused conglomerate Wesfarmers”. The group is further identified for being the largest retail player in terms of “liquor retailer, hotel and gaming...

Read More arrow

7808ICT Information Security Management For Human Readable Security Features

Download : 0 | Pages : 8
  • Course Code: 7808ICT
  • University: Griffith University
  • Country: Australia

Answer: Introduction Smart card are termed as smart as they are integrated with a computer chip. Smart cards are devices that helps in identification of user and provide cost efficiency features [1]. Smart cards are used in various fields including health services, banking, telephone, employee ID, transport and physical access control. The security of users affect the trust of the user with the company or any other business organization.  ...

Read More arrow

PACC6008 Business Decision Making For Statistics And Graphical Representation

Download : 0 | Pages : 5
  • Course Code: PACC6008
  • University: Newcastle University
  • Country: United Kingdom

Answer: Question 1 The institute is interested in wages of US workers in 2018. Descriptive statistics and graphical representation of the variable Wages and Education is highlighted below (Foster, 2013). Numerical summary  Graphical representation  Comment Wage Level It is evident from the above computation that the mean hourly wage level is $25.62. Also, the shape of the graph would be asymmetric considering that high positive ...

Read More arrow Tags: Australia Sydney Management Master of Health Administration  University of Sydney 

MGT2HRM Human Resource Management For The Poor Safety Environment

Download : 0 | Pages : 10
  • Course Code: MGT2HRM
  • University: La Trobe University
  • Country: Australia

Answer: Introduction Antonsen (2017) stated that employees are the most valuable asset of an organization as they works for accomplishing the organizational goals. The staffs work hard for developing the products, representing the brand and fuel the success. Thomas and Galla (2013) furthermore highlighted that poor safety environment at the workplace resulted in high absenteeism, serious injuries and employee turnover rates. This report thus ...

Read More arrow Tags: Australia Melbourne Management Business Law University of Melbourne 

HRM 702 Employment Law System

Download : 0 | Pages : 10

Answer: Introduction Affirmative action is referred to the procedures undertaken with the aim of protecting the minority communities—especially the people of color, women, transgender, aboriginals and many more. The dawn of Affirmative Action in US was seen in the 1960s with the main motive to fight discrimination based on race and skin color, as well as discrimination based on sex and gender (Ma & Schapira, 2017). History of intole...

Read More arrow
Next
watch

Save Time & improve Grade

Just share Requriment and get customize Solution.

question
We will use e-mail only for:

arrow Communication regarding your orders

arrow To send you invoices, and other billing info

arrow To provide you with information of offers and other benefits

1,356,327

Orders

4.9/5

Overall Rating

5,080

Experts

Our Amazing Features

delivery

On Time Delivery

Our writers make sure that all orders are submitted, prior to the deadline.

work

Plagiarism Free Work

Using reliable plagiarism detection software, Turnitin.com.We only provide customized 100 percent original papers.

time

24 X 7 Live Help

Feel free to contact our assignment writing services any time via phone, email or live chat.

subject

Services For All Subjects

Our writers can provide you professional writing assistance on any subject at any level.

price

Best Price Guarantee

Our best price guarantee ensures that the features we offer cannot be matched by any of the competitors.

Our Experts

Assignment writing guide
student rating student rating student rating student rating student rating 5/5

230 Order Completed

97% Response Time

Liya Han

Master Of Science in Geotechnical Engineering (MSc Geotec)

Singapore, Singapore

Hire Me
Assignment writing guide
student rating student rating student rating student rating student rating 5/5

285 Order Completed

99% Response Time

Eugene Baranowski

MBA in Supply Chain

London, United Kingdom

Hire Me
Assignment writing guide
student rating student rating student rating student rating student rating 5/5

1692 Order Completed

98% Response Time

Alfred Dodd

PhD in Computer and Information Science with specialization in Database

Wellington, New Zealand

Hire Me
Assignment writing guide
student rating student rating student rating student rating student rating 5/5

647 Order Completed

98% Response Time

Adlina Han

Masters in Marketing with Specialization in Branding

Singapore, Singapore

Hire Me

FREE Tools

plagiarism

Plagiarism Checker

Get all your documents checked for plagiarism or duplicacy with us.

essay

Essay Typer

Get different kinds of essays typed in minutes with clicks.

edit

GPA Calculator

Calculate your semester grades and cumulative GPa with our GPA Calculator.

referencing

Chemical Equation Balancer

Balance any chemical equation in minutes just by entering the formula.

calculator

Word Counter & Page Calculator

Calculate the number of words and number of pages of all your academic documents.

Refer Just 5 Friends to Earn More than $2000

Check your estimated earning as per your ability

1

1

1

Your Approx Earning

Live Review

Our Mission Client Satisfaction

You have demonstrated a good understanding about the technical requirements of IoT. It would have been useful to have specific examples of IoT in use, for example in industrial settings such as a warehouse for supply chain operations or in hospitals ...

flag

User Id: 259199 - 05 Jul 2020

Australia

student rating student rating student rating student rating student rating

According to what with the request. Great work has been done. I will definitely ask again. Thank you very much.

flag

User Id: 409054 - 05 Jul 2020

Australia

student rating student rating student rating student rating student rating

The first assignment I received did not answer any questions and looked like someone who did not speak English had written it. I was so appalled , I have never felt more ripped off in my life. I ended up having to quickly do the assignment myself wit...

flag

User Id: 427879 - 05 Jul 2020

Australia

student rating student rating student rating student rating student rating

Under limited time, my research proposal was reasonably well writings. I really appreciate;)

flag

User Id: 436898 - 05 Jul 2020

Australia

student rating student rating student rating student rating student rating
callback request mobile
Have any Query?