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Industry analysis - Essay Example

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Complementary products usually complement each other in that they play a role of enhancing each other either to improve it or from the standpoint of necessity. This is due to the fact that a customer who has already bought from you is likely to buy from you again or buy a…
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Industry analysis

Download file to see previous pages... have serious impact on the profitability, competitiveness and growth as well as the satisfaction in using the product produced by a particular service provider or industry (Willett, 2010). An industry can therefore take advantage of the purchases by customers of the complementary products even if you do not offer them yourself by establishing multiple alliances with those that do not offer them. Our industry which is the cosmetic manufacturing that includes manufacture of products such as hair products, skin care, cosmetics, deodorants, perfumes, oral care and other products including baby items may benefit from complementary industry such as the hair dressing industry.
Hairdressing and the cosmetic industry are closely intertwined and aligned and each has got the effect of affecting the profitability of the other in that the demand for the cosmetics will be dependent on the hairdressing and the beauty salon services. These two industries are competitive and the competition in the large number of salons in a particular area is likely to affect the uptake of the demand for these products (Willett, 2010). Further, the competition for sales of hair and beauty products increases with the increasing number of beauty parlors, beauty stores as well as salons showing that these two industries are complementary to each other.
The success of our company which is dealing in the sale of cosmetic products and our competitive strategy will therefore depend on how we relate to the hair dressing service industry. This is so due to the fact that the rate and intensity of competition in an industry is dependent on the economics of the particular industry and the fact that each differs fundamentally from the other, and therefore the collective strength of the forces of competition is distinct. Therefore, as a manufacturer dealing in cosmetics products, it is important that to find a position that helps it cope best with hose providing hair dressing services and use the competitive ...Download file to see next pagesRead More
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