Report of Nu Skin Incorporated

Report of Nu Skin Incorporated

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Report of Nu Skin Inc.
● Introduction to company: history, location, products, etc., indicating reasons for your interest
Founded in 1984 Nu Skin Enterprise, Inc. has put a spin on the selling of its products. The strategy is a direct selling style that distributes more than 200 premium quality anti-aging products in both the personal care and the nutritional supplements categories. The company has a global wide consumer base ranging from America, Asia Pacific, Africa and the Middle East. The company has three divisions Pharmanex, Nu Skin and Big Planet. The first covers the natural nutraceutical products, second is markets personal care products and the last markets technology services. Company is headquarter in Provo, UT. Studies show that they generated more than 2.17 billion revenue during 2012. The company’s mission has been to improve people’s lives through quality products, awarding business and an uplifting and enriching culture.
The company is not only interested in money, records show that in 2012 combined with their partners donated more than 4.2 million to improve the lives of children throughout the world. In a convention Blake Roney chairman and co-founder of Nu Skin Enterprises used the phrase “force for good” as he shared his vision of how he wanted the company, its distributors and employees to be known around the world. This theory has been engraved into the company’s brand as they pursue the philanthropy role in the world. The original force for good campaign was introduced in conjunction with their Nu Skin Epoch product line in 1996. The company’s brand of skin and hair care product by the company was developed in corporation with the world’s leading scientists who study the relationship between plants and indigenous cultures.
Search showed that a donation of 25 cents from each sale of each Epoch product was directed to preserve the environments, lifestyles, languages, and traditions of ethnic people around the world. To commemorate this big step the company donated more than 320 million meals through its Nourish the Children initiative to hungry around the world. The objective of this company is to recruit people who want to become entrepreneurs by selling the products and signing up new distributors. The style can be compared to the pyramid scheme (which has come to question many times) however these people collects commission income and bonus and have a chance to build their own sales network. Lastly, I have been a customer of the company since 2008.

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I know that quality of the products is outstanding. Also, I am a shareholder of the company.
● Analysis of company’s primary industry or strategic group (if more applicable) to identify strong/ weak forces
Beauty and health industry is growing rapidly throughout developed countries due to social media, obesity epidemic. Nu Skin is very profitable and desirable industry. This industry’s life cycle in on in between growth and maturity stages. The forces of rivalries is medium to high due to many established well-known brand competitors. Relatively to its competitors, Nu Skin is young brand but the product quality wise as good as or better than the rivalries. The second force is the barriers to new entrants. Entering into the beauty and health industry requires high amount of tangible resources, innovative products and have to go through health regulation which concludes that the barrier is high. The suppliers don’t have much power because the company can switch to other suppliers. However, the buyer power is high because there are many options. Plus, Nu Skin doesn’t put their products in stores and it makes hard to taste products if you are a new customer. The power of substitute is medium due to many different innovative products out there. The complement is medium to high. A customer doesn’t only buy a lotion because she/he needs tonic, eye cream and soap go along with the product.
● Identification of company’s core competencies, how these were developed and what (if anything) makes them difficult to imitate
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