文档介绍：Andersen Consulting - Strategic Services
Cosmetics Case
Situation:
BeautyAsia (BA) is a health and beauty consumer pany headquartered in Malaysia. It manufactures and sells a line of cosmetic products ideally suited for the Malaysian marketplace. Although it has been a pany for over twenty years, it has been losing money for the past two years and its market share has declined. The CEO has asked you to assist in diagnosing the problem and generating a few possible solutions.
Question:
What should BeautyAsia do to restore its profitability?
Suggested Frameworks:
Given the client’s decline in market share, the 3Cs model (., Competition, Competencies, Customers) is an effective framework.
Key Facts (to be shared as the case progresses):
Company
Market share declined from 90% to 60% in the past two years.
Manufacturing is excellent
Inventory management systems are unsophisticated and ineffective, resulting in excess inventory and order fulfillment problems
Brands are widely recognized throughout Malaysia
No new products have been launched in the past eight years
BA sells its health and beauty products primarily through local mom and pop shops (., convenience stores)
Management considered selling its current products outside Malaysia, but has been distracted by problems in its home country
Competitors
Several large multinational manufacturers have entered t