Beauty & wellness Industry Analysis
Multi-Framework Approach
This guideline equips you with a framework for a comprehensive industry analysis for your strategy class semester studies program. You will leverage a combination of strategic frameworks.
Industry Selection:
- Assigned industry: Beauty and wellness
- Consider the industry’s relevance to current business trends.
Industry Analysis Frameworks:
- Industry Dynamics and Strategy (Hambrick & Fredrickson Diamond):
- Utilize the Hambrick & Fredrickson Strategy Diamond to delve deeper into industry dynamics:
o Arena: Define the industry’s boundaries and key competitors.
o Anchor Customers: Identify the customer segments that drive industry profit pools.
o Value Creation Chain: Analyze the core activities that create value for customers.
o Strategic Positioning: Evaluate how companies compete for advantage within the value creation chain.
o Context: Consider the broader PESTEL factors influencing these elements.
- Internal Resource-Based Advantage (VRIO):
- Identify a company’s unique resources and capabilities that drive competitive advantage using the VRIO framework:
o Analyze resources based on Value (scarcity and relevance), Rarity (uniqueness), Imimitability (difficulty of replication), and Organization (effective utilization).
Beauty & wellness Industry Analysis
Data Sources:
- Industry reports (IBISWorld, Statista)
- Government websites (Bureau of Labor Statistics)
- Market research reports
- Trade publications and industry news sources
- Company annual reports and financial statements
- Business databases (EBSCO, Factiva)
Analysis and Recommendations:
- Synthesize findings from each framework to present a comprehensive picture of the industry.
- Identify key trends, opportunities, and threats based on the combined analysis.
- Recommend strategies for companies operating within the industry, leveraging insights from VRIO and Hambrick & Fredrickson Diamond analysis.
Beauty & wellness Industry Analysis
Conclusion:
Summarize the key takeaways from your industry analysis and emphasize its implications for business strategy formulation.
Identify companies to invest in if you determine that there is in fact an investment opportunity.
Additional Tips:
- Use data visualization tools (charts, graphs) to effectively present your findings.
- Support your analysis with credible sources and industry references.
- Use data driven analysis!!!
Benefits of a Multi-Framework Approach:
This approach provides a more nuanced and holistic analysis of an industry:
- Diamond of Competitive Advantage highlights national or regional advantages. (Consider using Hambrick & Fredrickson Diamond for a more industry-specific perspective)
- VRIO focuses on a company’s internal resources and capabilities. APA.