Strategic Marketing - Case O F Sa Sa Essays
This paper discusses the strategic marketing of Sa Sa International Holdings Limited, a leading beauty retail and service group in Asia by analyzing its competitive advantages, marketing strategies, industry environment, major challenges and followed by some problem solvers.
Sa Sa has four major competitive advantages. First, she can offer competitive prices for her long-term relationship with suppliers. Besides, excellent service with number of recognized winning awards accounts for another advantage. In addition, she has long-established network with 80 retail outlets in prime Asian countries and on-line presence. Also, she has well-established branding “beauty expert” in Hong Kong as well as in Mainland China. Among …show more content…
To have a glance at Sa Sa’s current situation, first attention should be paid to the attractiveness of the retail beauty industry in major market, Hong Kong and China. Michael Porter identified five forces that determine the intrinsic long-run profit attractiveness of a market segment (Porter, 1980).
There are numerous competitors but only a few strong competitors in the market, for instance, Bonjour Holdings Limited, the major competitor of Sa Sa, recorded negative operating profit in last financial year. The market growth in Hong Kong is steady whilst in China is growing. Also, high fixed cost like rental fee in Hong Kong makes rivalry increases as competitors fight for more market share to survive. So, the threat of intense segment rivalry is medium.
The threat of substitutes is rather low as beauty products are hardly replaced by others. Meanwhile, the threat of new entrants is medium as the increasing rental fee and limited space in Hong Kong impose certain difficulty to enter. However, the Buyer’s power is significant as they can switch to other brands easily and the power of end users is further enhanced by the Internet as some brands offer direct online purchase for consumers. And, the threat from the supplier side is only medium as there are many substitutes in the market and the price usually depends on the