Industry Analysis Paper
INDUSTRY ANALYSIS PAPER:
Direct Sellers of Personal Care Products
School of Business Administration
ECO 6351 Economics for Managers (Spring 2007)
Dr. Chien Chen
Team #6: Nisha Stephens and Cathy Osh
As a team member, I hereby certify and warrant:
(a) that this Paper is our original team work;
(b) that we have acknowledged all the sources used in this Paper. I understand that copying of another's work and representing it as our own work is a serious academic offense, and should be treated as such;
(c) that the final version of this Paper has been read and approved by all team members in the form it has been submitted to the Instructor.
Name Initials Date
1.Nisha Stephens N.S. 04/27/07
2.Cathy Osh C. O. 04/25/07
Table of Contents Page
Executive Summary 2
Overview .3
Industry Organization .3
Market History 4
Market Structure .6
Market Demand ..7
Competitive Forces .9 Barriers to Entry .9 Rivalry among Competing Sellers .9 Competitive Forces of Substitute Products 9 Competitive Forces of Buyers ..10 Competitive Forces of Suppliers ..10
Conclusion ....10
Works Cited ...12
EXECUTIVE SUMMARY
This term paper analyzes the "direct sellers" distribution channel of the personal care products industry and presents recommendations on entry by prospective competitors. The premises and arguments are supported by citations and references.
Personal care products consist of cosmetics, fragrances, bath products, skin care products, nail care and sun protection. The direct sales business model was developed in the late 1800s and utilizes a distribution channel vis-à-vis beauty consultants.
Avon was the first to enter the market as
Direct Sellers of Personal Care Products
School of Business Administration
ECO 6351 Economics for Managers (Spring 2007)
Dr. Chien Chen
Team #6: Nisha Stephens and Cathy Osh
As a team member, I hereby certify and warrant:
(a) that this Paper is our original team work;
(b) that we have acknowledged all the sources used in this Paper. I understand that copying of another's work and representing it as our own work is a serious academic offense, and should be treated as such;
(c) that the final version of this Paper has been read and approved by all team members in the form it has been submitted to the Instructor.
Name Initials Date
1.Nisha Stephens N.S. 04/27/07
2.Cathy Osh C. O. 04/25/07
Table of Contents Page
Executive Summary 2
Overview .3
Industry Organization .3
Market History 4
Market Structure .6
Market Demand ..7
Competitive Forces .9 Barriers to Entry .9 Rivalry among Competing Sellers .9 Competitive Forces of Substitute Products 9 Competitive Forces of Buyers ..10 Competitive Forces of Suppliers ..10
Conclusion ....10
Works Cited ...12
EXECUTIVE SUMMARY
This term paper analyzes the "direct sellers" distribution channel of the personal care products industry and presents recommendations on entry by prospective competitors. The premises and arguments are supported by citations and references.
Personal care products consist of cosmetics, fragrances, bath products, skin care products, nail care and sun protection. The direct sales business model was developed in the late 1800s and utilizes a distribution channel vis-à-vis beauty consultants.
Avon was the first to enter the market as