Arimount Case Analysis

As a one of the best companies in the beauty and deodorant industry, Arimount Corporation need to conduct internal and external environmental analysis so as to determine its position in the market and come up with growth strategies. It will also be of relevance to the management so as to know the market situation in terms of competitors and trends so as to maintain the competitive advantage. In fact this plays a vital role in strategies such as introduction of new products that meets the needs and preferences of the customers as the market keeps on changing considering the level of social and information technology (Anderyenko, 2013). In terms of external environment the company should consider the market demographics that is age group of the

Another major milestone that is occurring in the industry is high growth rate. The deodorant industry has the fastest growth rate in the United States and Arimount should use this information to make the products that creates value to the customers so as to increase the loyalty and retention rates. That is because the industry will attract new entrants thus leading to loss of market share to firms that lacks strong competitive advantage. Market needs and trends should also be a defining feature for Arimount Corporation in its attempt to come up with strategies to enhance long term survival. Currently the industry has reached levels of maturity where only a company that is very innovative will sustain the market share or penetrate new markets (Wiersema, 2012). That means research and development areas of the company should be provided with resources such as funds and personnel so as to move the company to the next level. The consumers are also not brand loyal and mostly keep on testing varieties in the market and therefore the management should come up with strategies that increase cost of shifting

First there is threat of new entrants as the industry does not have many barriers and the customers are not loyal to brand. If not checked this can make Arimount lose its value to the market. Currently the company faces a lot of competition from corporations such as Proctor & Gamble. That means the management of the company should focus on more unique ways of attaining more share such as product differentiation and low prices that are favorable to customers. Since there are many options for customers in the market the bargaining power of the customers are low and products are competitively determined. As such the management need to focus on ways of making the customers have high rate of satisfaction. The bargaining of the suppliers of raw materials is also low and the management must come up with ways of controlling the materials so as to be independent and avoid the prices of the output depending on the cost of raw materials (Bertsch, 2015). Other competitive forces that have impact in the market are threat of substitutes and competition rivalry which requires management to conduct appropriate analysis before making strategic