Cosmetics Industry Pest Analysis

Pest Analysis
PEST is an acronym for Political, Economical, Social and Technological factors which will affect the organizations outcome in the long run. It is an analytical business tool used in determining the organizations position with these external factors.
P – POLITICAL
Foreign Trade Regulations is a factor that is followed by Natures Secret when it comes to exporting goods to other countries. They have to have authority and clear all trade restrictions with the government to export. And they should be of standards of the countries they are distributing their products to.
The products produced are of European GMP (Good Manufacturing Practice) standards

E – ECONOMICAL
The pricing ranges of the products vary according to the sizes

While as the other two are regarding the customer and supplier.
1) The First Force - THE THREAT OF NEW ENTRANTS.
This force identifies the ability of new organization in the same industry making its way to the marketplace. And if the entry of this process is easy it will create a huge Competition factor.
Natures Secret so far has secured a very stable position in the Market Place in Sri Lanka with customer loyalty of Lankans. Mainly due to its products produced are well tested on the Sri Lankan skin type and is unique and definitive and has been developed to perfection with proper research.
The threat of new entrants in the cosmetics industry is very low mainly due to the massive cost of entrance to this sector. And the development of distinctive cosmetic items need a lot of investment when it comes to research and development of a product to match up needs wants and demands of the consumer in this vigorous industry. Then there are the already existing cosmetic skin care brands in the market like Ponds, Neutrogena, Dove, Olay, Lakme, Clean and Clear, Nivea which are well established globally renowned cosmetic brands who have high customer loyalty towards them have a larger market share to compete

Named by the brand “4Ever” which also puts out almost all product types that Nature’s Secret produces and has all the similar ingredients infused in them. Though Natures Secret has always outweighed them by customer loyalty and consistency in the market. It has been impossible for the brand 4Ever to compete with Natures Secret when it comes to detailed research and uniqueness.

3) The Third Force – THREAT OF SUBSTITUTES
This factor is the possibility of a new product hitting the market that is leaps and bounds better than established products.
When new still unknown brands to the customer population hits the market and the customer feels the need of change and chooses to try another type of skin care product other than Natures Secret and is satisfied with the outcome that is a threat to the brand.
4) The Fourth Force – POWER OF SUPPLIERS
This is when the bargaining power of a industries supplier increases. When a supplier provides a resource that is running scares the competition for that resource will increase.
Natures Secret is a self sufficient organization with all resources used grown and harvested in their own 13acre medicinal plant garden with over 500 types of plants growing. They do not depend on suppliers due to this