Revlon Case Study Analysis

CASE STUDY Revlon Industry Submitted to : Professor Omar Shaoor

Submitted by: Muhammad Danish Zuberi

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Saqib ghafoor

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Usman

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Table of Contents

Executive Summary

After the thorough investigation and careful analysis of the situation, problem, strength, weakness, opportunities and threats of Revlon, we came to know the different problems which Revlon was facing and which was loosing Revlon efficiency in the industry and competitive position in the market. We found twelve different problems after swot analysis of Revlon, out of which we pointed out main problem; why Revlon loose its competitive position in the market? On which Revlon must focus to maintain competitive position in the market. We also suggested list of possible solutions which are helpful to solve main problem of Revlon and from which we pointed out optimal possible solution of main problem that Revlon should follow effective cost leadership as compare to competitors. After that we conclude that Revlon has now effective cost leadership and effective research and development programs than competitors. We also recommended some effectives strategies as forward integration, backward integration, horizontal integration, market penetration, market development, and product development which should be implemented in the Revlon to maintain competitive position for long period.

Swot analysis After studying the case study of Revlon, we did swot analysis which have become helpful to know about Revlon position as below: 1. Strength a. Innovative product launch b. Revlon has strong social responsibility programs c. They has minimum management expenses d. Company has strong marketing programs e. Strong research and development programs f. It has Large mass merchandisers and chain drug stores g. Continuous new product development h. Great operating efficiency and use of capital assets i. Revlon is a idea generated company 2. Weaknesses a. b. c. d. e.

f. g. h.

They follow wrong strategy They get a huge amount of long term debts Revlon launch product with high price than competitors Revlon has lack of financial resources They offer minimum diversified product as compare to competitors They spend a large amount of advertising expenses Revlon decrease current assets and increase their current liabilities They has bad decision making strategy

3. Opportunities a. b. c. d. e. f.

The young generation migrants to America are increasing The usage of personal care products are increasing Men also using the cosmetics products Latin America represents a growth opportunity The older age women also entering to the cosmetic industry Women in china, India, and middle east are rapidly growing interested in purchasing more cosmetics

4. Threats a. b. c. d. e. f.

Older people tend to spend less on cosmetics The young age women are decreasing The racial and ethnic issues Customers concerns about product safety Competition is increasing day by day in the market The strong competitors of Revlon are entering to cosmetic industry g. Disposable income of American decrease

List of problems 1. Why competitive position of Revlon is not strong? 2. Why financial position of Revlon is very weak? 3. Why Revlon gets losses after launch new products? 4. How Revlon develop new market which is not trapped by the competitors? 5. How Revlon improve the quality of product with minimum price? 6. Why cost leadership is not good? 7. Why new products of Revlon could not accept by market? 8. Why they need huge amount of debt? 9. Why could they not recover expenses? 10. Why could they not maintain the competitive position in the market? 11.Why they loose their customers day by day? 12. Why Revlon loose its competitive position in the market?

Main problem  Why Revlon loose its competitive position in the market? Lists of possible solutions 1. Revlon should follow competitive strategy 2. Revlon should have effective cost leadership as compare to competitors 3. Revlon can get competitive position through reduce their expensive staff 4. Revlon need to increase sale through increasing marketing efforts 5. The company should sale some unprofitable division 6. The company should improve the quality of products 7. The company should develop new market, which is not tapped by the competitors 8. The company should have effective research and development programs to develop product in the market 9. The company should have competitive and skilled inexpensive staff 10. Revlon should have effective value chain to compete from rivals Best possible solution  Revlon should follow effective cost leadership as compare to

competitors.

Conclusion After internal and external analysis of Revlon position in the market, we conclude that Revlon has now effective cost leadership and effective research and development programs than competitors. Recommendation We recommend to Revlon that they should follow such strategies as under: 1. Forward integration (increased control over distributors or retailers)

2. Backward integration (increased control of a firm’s suppliers) 3. Horizontal integration (increased control over competitors) 4. Market penetration (increased market share through greater marketing efforts) 5. Product development (increases sales by improving present products and services or developing new once) 6. Market development (introduction present products and services into new geographical area)