preview

Case Study Revlon

Better Essays

INTRODUCTION OF THE COMPANY: Revlon, Inc. was founded in 1932 by brothers Charles and Joseph Revson and Charles Lachmann with a $300.00 investment and one product which consisted of nail enamel. Revlon now has a 75 year history of providing high quality products to women. Revlon products are sold in more than 100 countries around the world with sales outside of the United States making up 43% of sales in 2006. Their product categories include skin care, cosmetics, personal care fragrance and professional products. Some of the companies most recognized brands are, Revlon, Ultima II, ColorStay, Almay, Charlie, Flex, Mitchum, Jean Nate’ and Color Silk.
REVLON, INC. MISSION STATEMENT: “Revlon’s long-term mission is to emerge as the …show more content…

0.06 2 0.12
Major retailers such as Wal-Mart have reduced inventory levels, leaving cosmetic companies with fewer opportunities to stock additional products on retail store shelves. 0.09 3 0.27
Consumers are concerned about product safety and the use of animal testing by cosmetic companies. 0.08 2 0.16
Competition is intense in the cosmetic and skin care industry. 0.12 4 0.46
Gas prices are high and rising leaving most Americans with less disposable income for purchasing cosmetics. 0.08 2 0.16 Totals 1.00 2.71 The relative weighted score was a 2.71, this shows that the company is doing well externally. When we look at some of the external factors for Revlon we see that 60% of the Asian market is still uncovered, which is a huge opportunity for Revlon. In addition as we can see by the analysis that intense competition is a major threat for them.
PORTER’S FIVE FORCES ANALYSIS:
1. Rivalry Among Competing Firms: Rivalry is intense among the competition in the cosmetic and skin care industry. There are numerous existing cosmetic companies competing in the market. The giant corporations acquire numerous brand name products and compete for the same number of customers. The competition consists of companies such as, Procter & Gamble, L’Oreal, Unilever, Avon Products, Inc., Estee Lauder, in addition to competing with large retailers, who order mass

Get Access