The Research On The Corporate Strategy Of MUFE Cosmetics Co.Ltd.

With the development of economy and improvement of people’s living standard, basic food and clothing can’t meet consumers’ needs any more, they have more pursuit of beauty. With the flourish development of economy and increasing of customer needs, the market trend of cosmetics is even more prosperous. Especially recent ten years, with the development of globalization, fashion trends from Europe, United States, Japan and Korea enter into China, benefit from this makeup category develops dramatically, and more and more customers turn their attentions to the makeup brands which leading fashion trends, that’s one of the most important reasons why the professional makeup brand MUFE enter China market in the beginning of the 21st century. However, compared with some famous European and American enterprises, MUFE entered China for only several years, and don’t have enough experience, currently has faced not only the competitions from existing competitive brands such as Bobbi, MAC, but also the potential new comers such as Nars, Urban Decay ect. In the moment mixed with crisis and opportunities, it is urgent matter and meaningful to help MUFE find an appropriate competitive strategy, to make sure that it can keep the leading position in the competitive environment.This paper is based on detailed analysis of literatures study of cosmetics developing trends, and deeply analysis of both internal and external environment of MUFE Co.Ltd, using the theory of Potter’s competitive strategy and analysis of MUFE’s current operation situation, then presents the opinions by my own. Firstly, this paper has simply summarized the developing process of strategic management, and introduced Potter’s competitive strategy and Blue Ocean strategy based on my own understanding. Later on, based on the development status of cosmetics, detailed introduce the developing situation of MUFE Co.Ltd, fully used the model of five competition forces and PEST analysis to do the analysis of MUFE’s internal and external environment, and finding out its advantages, weakness, opportunities and threats by using SWOT analysis and SWOT table, finally find out how to lead as the successful brand in the competitions. This paper also lists out the possibilities of the company’s competitive strategy choices, and determines the most suitable choice is the competitive strategy mixed with differentiation and low cost, points out this company should implement the differentiation on product and price, differentiation and low cost on channel, promotion and advertising. Finally this paper has listed out security measures for implementation of competitive strategy, which aim to help this enterprise maintain leading position in the fiercely competitions, also hope to provide some useful and referred suggestions to the enterprise operators or workers in cosmetics industry.