Care Your Skin has a lowthreat of new entrants as skin care and cosmetic are competitive firms and itscompetitors are selling dissimilar products.

For instance, Care Your Skinoffers 100% purely organic products to its customers while other companiesoffer their product that may contains synthetic chemical inside. Care Your Skinhas a strong brand image and has its own customers whether from local or foreignare loyal to its brand. Therefore, it is difficult for new entrants to set up astrong brand identity in short period of time. Additionally, a new firm wouldneed to have a large financial capital to access the industry such as capitalfor production and setting up a store.

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1.1.    1.2.    1.3.    1.

4.    1.5.    1.6.1    1.6.

2  Bargaining powerof suppliersThe bargaining power ofsuppliers in cosmetic industry is likely to be low due to the large number ofsuppliers accessible on the market. Thus, suppliers do not have the capacity toinfluence the market price of the product. Besides, the cost and the level of differentiationof inputs is low.1.6.

3  Bargaining powerof customersIn cosmetics and skincare industry, the degree of customers’ bargaining power is strong. Customerscan easily shift to other brands due to the availability of substitute productsin the market. This may compel the company to lower its products’ prices.

Therefore, Care Your Skin can remain its product with high quality at lowerprices to attract more customer to its business. 1.6.4  Threat ofsubstitute productsAs mentioned before,cosmetics and skin care are competitive industry and there are many competitorsoffer similar products in the market. Hence, Care Your Skin faces a high threatof substitute products. For example, customers can switch to another brand ifthey are not satisfied with the quality and the price of Care Your Skin.

1.6.5  Rivalry amongexisting competitorsThe intensity of rivalryamong existing competitors is high as there are many competitors in cosmeticsand skin care industry providing the homogenous products and services atdifferent price.

As a result, high rivalry determines the competitive positionof Care Your Skin in the market for cosmetics and skin care industry.


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