Shiseido
Making China Beautiful:
Shiseido and the China Market
Strategy Case Study
Fall Term 2012
Names: Carsten Eichhöfer, Lara Fries, Gregor Grebe, Luise Hoffmann
Submitted to: Prof. Amit Karna, PhD; Prof. Klaus Uhlenbrock, PhD
Submission Date: November 11th, 2012 * Table of Contents
List of Abbreviations i
List of Figures ii 1 Introduction 1 2 Case Analysis Shiseido 1 2.1 Shiseido’s International Expansion Strategy 1 2.2 Shiseido’s Global Advancement Capabilities 4 2.3 Contemporary Adequateness of Shiseido’s Strategy 5 2.4 Re-structuring as a Means of International Value Enhancement 8 3 Conclusion 10
Reference List 11
Appendix 12
* List of Abbreviations
CSR Corporate Social Responsibility
R&D Research and Development
U. S. United States
* List of Figures Figure 1 - Internationalization Matrix 12 Figure 2 - Demography China 2025 13 Figure 3 - Urbanization in China Today 14
1 Introduction
Founded in 1872 by A. Fukuhara, the traditional Japanese company Shiseido began to successfully produce westernized pharmaceuticals and cosmetics for national high-class consumers in 1878. The founders’ son, S. Fukuhara, studied and gained international experience in the U.S. and France, and thus, induced Shiseido to pursue an international strategy as to grow economically and enhance product recipes by embracing technological change. This strategy change was the initial step towards an internationally successful company which today is worth approximately €7.1 billion (Shiseido Company Limited, 2011a). In order to gain this prosperous status, the company pursued a specific international strategy, which will be elaborated in the first chapter and will be compared to prevailing industry conditions in terms of its adequateness in the third chapter. The second chapter conducts a comparison of Shiseido’s contemporary level of globalization and 30 years ago, while the fourth chapter ultimately
Shiseido and the China Market
Strategy Case Study
Fall Term 2012
Names: Carsten Eichhöfer, Lara Fries, Gregor Grebe, Luise Hoffmann
Submitted to: Prof. Amit Karna, PhD; Prof. Klaus Uhlenbrock, PhD
Submission Date: November 11th, 2012 * Table of Contents
List of Abbreviations i
List of Figures ii 1 Introduction 1 2 Case Analysis Shiseido 1 2.1 Shiseido’s International Expansion Strategy 1 2.2 Shiseido’s Global Advancement Capabilities 4 2.3 Contemporary Adequateness of Shiseido’s Strategy 5 2.4 Re-structuring as a Means of International Value Enhancement 8 3 Conclusion 10
Reference List 11
Appendix 12
* List of Abbreviations
CSR Corporate Social Responsibility
R&D Research and Development
U. S. United States
* List of Figures Figure 1 - Internationalization Matrix 12 Figure 2 - Demography China 2025 13 Figure 3 - Urbanization in China Today 14
1 Introduction
Founded in 1872 by A. Fukuhara, the traditional Japanese company Shiseido began to successfully produce westernized pharmaceuticals and cosmetics for national high-class consumers in 1878. The founders’ son, S. Fukuhara, studied and gained international experience in the U.S. and France, and thus, induced Shiseido to pursue an international strategy as to grow economically and enhance product recipes by embracing technological change. This strategy change was the initial step towards an internationally successful company which today is worth approximately €7.1 billion (Shiseido Company Limited, 2011a). In order to gain this prosperous status, the company pursued a specific international strategy, which will be elaborated in the first chapter and will be compared to prevailing industry conditions in terms of its adequateness in the third chapter. The second chapter conducts a comparison of Shiseido’s contemporary level of globalization and 30 years ago, while the fourth chapter ultimately