Business Strategy of Revlon Corporation

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An industry that is approached by pure competition is what is defined as the most unattractive industry whereby the available profits are driven to normality levels (Porter, 2008). This model is associated with its creator who is known as Michael E. Porter from Harvard University.Porter defined the forces in this model as a microenvironment so as to differentiate it from the generally used term macroenvironment. These forces are those that are touchy to a company whereby they affect its capability to deliver to its customers thereby influencing its profits. Where a change is recorded in any of the forces the company is forced to reassess the operating environment so as to remain competitive in that industry. An industry being attractive does not necessarily mean that every business within that industry will make profits. Businesses are capable of applying their business model, network and even their core competencies in a manner that allows them to make more profits than their industry average (Porter, 2008). A good example of an industry that is unattractive though some businesses still make a good profit is the airline industry. Profitability in this industry is generally low due to the underlying structure and the high cost of fixed assets. These factors make it hard to enter into this industry. However, some airlines e.g. Virgin Atlantic have been able to maximize sales and reduce costs and thereby emerging profitable than the industry this one is considered to moderately affect the existence of Revlon. Of late many people have preferred to use natural products. Many people have been raising concerns about the amount of chemical found in cosmetics. This has led to the creation of many natural cosmetic products. Revlon produces chemical products, and therefore this poses a moderate threat. It is also important to note the increasing growth in cosmeceutical Offerings.Another issue affecting substitutes is not only the availability of these natural remedies but also the availability of a distribution network. Through the use of social media, it is now possible for anybody to enter into the cosmetic industry so long as they have the product. Many of these natural products are sold online through the use of peer influence. People share on how they have discovered a new remedy to a certain condition e.g. acne and refer the offense to new shops. All these changes go into reducing the market for Revlon’s products. The main goal of Revlon is to grow to all corners of the globe. This comes with its own challenges. International economics come up with a unique challenge especially when you dealing with cosmetic products. It is obvious that emerging markets in Asia and Eastern Europe are in dire need of mass marketers. However, these markets are uncertain for Operations. Another important factor to consider is the emerging of a middle class in Africa, Asia, Latin America, and Europe. This creates a market for personal care products.It is crucial to note that expansion is not always the best strategy for a business. An expansion strategy needs to have been well thought of before it is executed. This is due to the fact that expansion uses a lot of company funds. Failure in an expansion strategy could even lead to the downfall of the company. Social media has become an important tool in this century especially when it comes to business. Consumer relationships are defined and developed through social media. People buy items with the influence of their peers. This is more so in the cosmetic industry. It is crucial to note that the cosmetic industry is no longer a woman industry alone. There has been growing that has been witnessed in male-oriented products in the hygiene and grooming section.