The Research On The Competitive Stratege Of Shanghai Inoherb Cosmetics Co. Ltd

With the rapid development of the market economy, China’s Cosmetics industry is facing a fiercely competition situation. A wide variety of brand new cosmetics enterprises with different functions have entered the market at home and abroad.China’s sales of cosmetics market have became the world’s fourth major cosmetics in2011. Affected by the change of the domestic cosmetics consumers’beliefs, more and more consumers are focusing on herbal ingredients, pure natural skin care products."Shanghai Inoherb" intiated by Shanghai Inoherb CO.Ltd. was born in2001.But with the Shanghai Inoherb company continuous operation, it always faces fierce competition from foreign and domestic brands,such as Vichy, La Roche Posay, Shanghai Jahwa With the domestic trouble and foreign invasion situation.formulating a competitive strategy for the development of Shanghai Inoherb company to ensure its brand to maintain its leading position in the fiercely competitions a very meaningful and urgent matter.This paper is based on internal and external environment analysis of Shanghai Inoherb CO.Ltd. and literature studv of the cosmetics industrv. First.theorv and development process and articles on strategic management are summarized, and the related content of professor Potter’s competitive strategy theory and Blue Ocean Strategy are introduced.Combinned with the current operating status of the skincare market, the paper introduces the practical development of company, use the PEST analysis,the model of five competition forces to carry on the system analysis of the company’s internal and external environment.Then the paper uses SWOT analysis tool to analyze the advantages weaknesses opportunities and threats, and summerizes up into SWOT analysis table in order to find the disadvantageous position in the increasingly fiercely competition.The paper also uses "Blue Ocean Strategy" to find what kind of new product should be developed. This can effectively avoid the competitors even go beyond the competitors, to develop their own unique market differences.The paper lists the possibilities of the company’s competitive strategy choices, determines final differentiation competitive strategy. The paper points out that the company should implement differentiation in product, price,channel, promotion, market position and advertisement.Finally, six security measures for the implementation of competitive strategy are produced in order to maintain Shanghai Inoherb’s leading position in the fiercely competition.