Sephora Strengths And Weaknesses

Decent Essays
- Who are your competitors?
Some of XXX’s major competitors include:
• Sephora
• Amazon
• Nordstrom
• Insatgram

- What are each competitor's strengths and weaknesses?
-
Sephora

Strengths:
- Powerful beauty presence with 1,900 stores in 29 countries worldwide.
- Variety of beauty products with more than 100 brands
- Has its own label for make-up, skincare, and beauty tools and accessories.
Weaknesses:
- Products are more expensive than similar products at other stores.
Amazon
Strengths:
1. The largest online retailer in the world.
2. Superior quality services and products
3. Cost leadership strategy
4. Using superior logistics and distribution systems
5. Globally recognition with customer base of around 30 million people
Weaknesses:
1. Lacks
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Sensing the success of Sephora, these brands also want a presence in a Sephora store.
2. Focus on in store beauty services and loyalty programs
Many in store services like makeover, haircut and nail care have set Sephora apart from the competitors. Sephora also runs loyalty programs like ‘inside beauty’ and ‘top brands’ to reward its customers.

Amazon
Multi-level sales strategy
Amazon employs a multi-level e-commerce strategy. Amazon started off by focusing on Business-to-Consumer relationships between itself and its customers, and Business-to-Business relationships between itself and its suppliers but it then moved to incorporate Customer-to-Business transactions as it realized the value of customer reviews as part of the product descriptions. It now also facilitates customer to customer with the provision of the Amazon marketplace, which act as an intermediary to facilitate consumer to consumer transactions. The company lets almost anyone sell almost anything using its platform.
Nordstorm
1. Great customer service.
-Nordstrom is choosy about hiring "nice, capable people," according to Forbes
-Their return policy: Nordstrom will take back any merchandise people bring back, no questions
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Nordstrom’s Digital Strategy

Because Nordstrom.com and the Nordstrom app are integrated with the inventory management system, customers can find what they want in one place and have it delivered from somewhere else to a third place. Nordstrom’s engagement with popular social apps, like Pinterest, extends what Nordstrom’s employees know about their customers’ preferences.

- What type of media are used to market their products or services?
Sephora and Nordstorm
Sephora and Nordstrom are very well known by their mobile apps and notable social media presence like Youtube, Twitter, instagram, Facebook and Tumbler.
Sephora also using online communities like Beauty Talk, Sephora TV and its Sephora To Go mobile app.
Amazon
The domain amazon.com attracted at least 615 million visitors annually, which made it provide marketing services through Amazon's self-service Ads platform.
Amazon also using affiliate program that lets anybody post Amazon links and earn a commission on click through sales,
What potential threats do your competitors pose?
• Wide range of competitors exists in cosmetics industry made differentiation much difficult.
• Customers became very selective in beauty products so attracting them requires high quality and

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