Shiseido was founded in 1872 in Japan. It is one of the oldest cosmetic companies in the world, and fourth largest cosmetic company. It started to export its products in 1929. Shiseido was the first to develop the softening lotion, a lightweight liquid of toner-like consistency. Their hydro powder eye shadows which have a creamy texture are among top beauty picks Therefore the company has had the advantage of being one of the first movers. This is one of the reasons why Shiseido's products have reached a high degree of market penetration.
The main strength of Shiseido is that the company is focusing on offering high quality products. In order to do so they developed a unique strategy of combining Western technology with the regional needs of every country in which their products are sold.
Company has limited possibilities to serve lower quality segments, especially in Europe and the USA where Shiseido remains confined to prestige brands. Therefore the company has problems competing in lower quality segments (i.e. as served by Maybelline and Revlon) moreover because they use sophisticated manufacturing techniques, which implicate higher costs. Shiseido established subsidiaries, which remained mostly unknown or uncompetitive.
Moreover, From the end of the 1980s Shiseido was faced with a constantly growing number of competitors on the market that contributed to Shiseido's declining domestic market share, (the result being a decrease of prices for cosmetic products in general). The rise of competition as well as the saturation of the Japanese market forced Shiseido to expand its business globally.
For shiseido, there is an opportunity to increase their market share.
The increasing population of old people has created a huge market for anti-ageing cosmetics, which can be, place for their improvement.
Increased health consciousness have led to a surge in the demand for organic and natural beauty products and Shiseido can boost its...