Barriers to Entry
There are low barriers to entry in the industry of personal care and cosmetics. The factors that influence the barriers potential include the brand loyalty, the credibility of the company. The history and time since establishment as well as the nature of research and development department the company has.
The level of rivalry in the industry is very intensive and strongly competitive as numerous brands offered by other personal care giants as well as smaller retailers and departmental stores operate in the market catering to similar target markets. The switching costs in the industry are low, therefore the companies aim for customer loyalty.
Threats of New Entrants and Substitute Products
The threat of new entrants in the industry is relatively low, while the threat of substitute or alternative personal care products is high in diverse markets like Africa,ChinaandIndiawhere local products are much preferred by the customers.
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