Coty Case Study
Coty Inc.’s Business Landscape
Coty Inc. is the world’s largest cosmetic and fragrance company that focuses on selling high-end perfume brands. The company’s main competitors are Estee Lauder Co. Inc and L’Oreal. Coty’s target customers ranged from young adults to professionals from all around the world. The company’s core strategy is to offer high quality beauty products worldwide to achieve product differentiation over competitors. Coty emphasizes celebrity- branded perfumes; most products introduced by the company are headed by famous sport stars, fashion icons, and well- known singers. In 2005, Coty acquired Unilever Cosmetic International (UCI) subsidiary for $800 million to expand its fragrance market. UCI provided Coty with the opportunity to market more top brands such as Calvin Klein, Vera Wang, and Chloe.
After the acquisition of UCI, Coty faced problems integrating UCI infrastructure onto Coty’s since most of UCI’s processing systems, such as ordering, warehouse and shipping were different from Coty’s. There were duplication problems on the supply chain between both companies which greatly added extra cost to the acquisition decision. Coty believed that integrating the two companies should take the least time possible to offset the cost of the acquisition before the company could generate value for customers. As a result, Coty’s short- term goal as a part of its core strategy was to fully integrate the supply chain within a six months deadline. To support its short-term goal, Coty had signed a contract with a vendor called iWay and used service-oriented architecture (SOA) to integrate the systems which helped to enhance the performance of the overall SCM.
Purpose of the Information System and its Competitive Edge Being a worldwide company serving two continents, Coty faced major challenges during the integration process as the chosen technology systems must have the ability to speak several different languages. At the start, Coty Inc. attempted
Coty Inc. is the world’s largest cosmetic and fragrance company that focuses on selling high-end perfume brands. The company’s main competitors are Estee Lauder Co. Inc and L’Oreal. Coty’s target customers ranged from young adults to professionals from all around the world. The company’s core strategy is to offer high quality beauty products worldwide to achieve product differentiation over competitors. Coty emphasizes celebrity- branded perfumes; most products introduced by the company are headed by famous sport stars, fashion icons, and well- known singers. In 2005, Coty acquired Unilever Cosmetic International (UCI) subsidiary for $800 million to expand its fragrance market. UCI provided Coty with the opportunity to market more top brands such as Calvin Klein, Vera Wang, and Chloe.
After the acquisition of UCI, Coty faced problems integrating UCI infrastructure onto Coty’s since most of UCI’s processing systems, such as ordering, warehouse and shipping were different from Coty’s. There were duplication problems on the supply chain between both companies which greatly added extra cost to the acquisition decision. Coty believed that integrating the two companies should take the least time possible to offset the cost of the acquisition before the company could generate value for customers. As a result, Coty’s short- term goal as a part of its core strategy was to fully integrate the supply chain within a six months deadline. To support its short-term goal, Coty had signed a contract with a vendor called iWay and used service-oriented architecture (SOA) to integrate the systems which helped to enhance the performance of the overall SCM.
Purpose of the Information System and its Competitive Edge Being a worldwide company serving two continents, Coty faced major challenges during the integration process as the chosen technology systems must have the ability to speak several different languages. At the start, Coty Inc. attempted