Shiseido Business AnalysisShiseido was founded in 1872 in Japan and started exporting its products in 1929. Therefore the company had the advantage of being an early mover. This is one of the reasons why Shiseido products have achieved a high degree of market penetration. S: Shiseido's main strength is that the company focuses on offering high-quality products. To do this they have developed a unique strategy that combines Western technology with the regional needs of each country where their products are sold. Their ability to adapt to the particular needs of the market and their commitment to investing in the research and development of their products have contributed to the development of the company's reputation, in particular the laboratories' world-class research in dermatology. All these aspects are responsible for the international recognition of the brand, which is one of the key factors for the high sales figures. In fact, Shiseido focuses on corporate brands. W: On the one hand this makes it easier for Shiseido to sell its products, on the other hand it limits the company's ability to serve lower quality segments, especially in Europe and the United States where Shiseido remains limited to prestigious brands. Therefore the company has difficulty competing in lower quality segments (e.g. those served by Maybelline and Revlon), furthermore it uses sophisticated production techniques which imply higher costs. Shiseido has established subsidiaries that have remained mostly autonomous (e.g. BPI) which encounter difficulties in knowledge transfer.T: Since the late 1980s Shiseido has faced a constantly increasing number of competitors in the market which has contributed to the decline of Shiseido... ... middle of paper ...... expected to enter the Eastern European market (especially in Poland and Slovakia), rapidly developing the spa tradition. Shiseido, by acquiring the existing structure and offering other beauty services, could increase revenues in this sector by 10% in 2 years despite low investments. Shiseido's focus on research and development should become more profitable, increasing the number of collaborations on new product development (as it is currently doing with BASF for the development of new materials for UV protection), and enhancing its high reputation in this sector.