Intersco Asia Pacific has been a company trying to make it in the cosmetics and skincare industry, having broken up from Intersco Group, the parent company from Milan. Over the period that it has conducted business, Intersco Asia Pacific has undergone several transformations and challenges that have forced it to change its perspective on the industry. The problems with the new market, suppliers and competition have made the company review both its short term and long term goals. However, the new strategies that have been set in place are expected to make the company more competitive and adapt better to the changing environment.
Transforming Intersco Asia Pacific has been a challenge for Intersco Asia Pacific in terms of technology, customer retention, product quality and pricing of products. The managers have made recommendations as to why the company should remain competitive in the cosmetics industry and these projections are meant to make Intersco Asia Pacific a formidable competitor. The interviews conducted with the manager proved to be helpful in providing insight for the writing of this report. However, being a company with limited resources, Intersco Asia Pacific has enjoyed some market share although not with some hiccups along the way.
From the interviews conducted among the managers of Intersco Asia Pacific, it was evident that Intersco Asia
Pacific was a company with the potential to become a market leader. With the projected increase in production of products as a result of the expansion of floor space, Intersco Asia Pacific is likely to command a sizable market within the next few years. Following a search for new suppliers and market, Intersco Asia Pacific can finally make to become competitive in terms of price reduction, customer acquisition and retention. Following the breaking away from Intersco Group, Intersco Asia Pacific has had the misfortune of dealing with obsolete products that are not suitable for the Asia Market, lack of financial backing, increase in wages as a result of reduced retirement age and a reduced number of sales volumes.
On the other hand, following the SWOT analysis, Intersco Asia Pacific has the potential to incorporate other factors that will ultimately make it a valuable investment. Despite having the potential to become a market leader, Intersco Asia Pacific has been prone to several setbacks, most profoundly being the level of competition from other countries. Also, facing several threats like the emergence of new competitors has derailed the company in terms of expansion and profitability.
This part of the study only seeks to provide a summary of the information that was collected from the interviews conducted at Intersco Asia Pacific for the purpose of this study. The managers present while the collection of data was more than helpful in the writing of this report. Intersco Asia Pacific has been a company that has come up from the ranks to become a budding competitor in the cosmetics industry. Following the problems that the company has faced, there has been an increase in speculation of the future of the company. However, the recent advancements in terms of floor space, technology and marketing strategies, it is safe to say that Intersco Asia Pacific is headed in the right direction.
Data collected from the interviews shows that Intersco Asia Pacific has a long way to go in terms of marketing and creation of a bigger and brighter future for the company. The managers provided sufficient information during the interviews that gave away the potential for the company. Following the split from Intersco Group, Intersco Asia Pacific has had to come up with strategies to deal with a new market which is Asia. The new market has brought with it several challenges that have forced the company into a tight corner.
The European market that was the sole source of business for Intersco Group was a different beast from the Asian market. The measures taken by the managers to combat the situation have been more than pronounced in terms of ensuring that Intersco Asia Pacific remains profitable in a market that is not so favoring to new companies. The new proposals for increased floor space for production are the main addition to the repertoire of the company.
The problems that Intersco Asia Pacific faces are not unique to the company alone but are rather consistent with all emerging companies in any given market. The managers interviewed proposed that changes needed to be made in order for the company to remain profitable and operational in the Asian market. Changes in the environment, changes in customer preferences and changes in leadership have been the major factors derailing the progress an establishment of Intersco Asia Pacific as a formidable competitor. However, in the event that the company engages in financial backings opportunities, then the company is set to have a big and bright future in the cosmetics and skincare.
This segment outlines the proposed reforms that can be used in order to make Intersco Asia Pacific perform better as a company and a worthwhile competitor in the skincare industry. Following the interviews conducted and the subsequent data collected about the company, there is a clear cut way out for the problems that Intersco Asia Pacific were facing at the time of the interviews. The general manager, highlighted that the proposed plans for expansion are in line with the projected potential for the company. Being a small company in an emerging market, Intersco Asia Pacific has the potential to become one of the biggest companies in the cosmetics and skin care market.
The first recommendation for Intersco Asia Pacific would be to find financial backing for the expansion of the company. It is through financial effort that the company can improve on the factors that make the company weak financially. For example, the company should increase finances in order to increase its floor space for both production and storage. When Intersco Asia Pacific increases its floor space to be used for production more products shall be produced which in turn shall reduce the prices for products that are availed to the customers. Also, an increase in financial backing shall propel Intersco Asia Pacific to new heights in terms of marketing that shall be used to acquire and retain customers at Intersco Asia Pacific. The added finances shall also assist the company to expand to other regions of the market that would be impossible at the current state of the company.
The second recommendation made from the data collected was that Intersco Asia Pacific required finding new suppliers for their raw materials. Having to deal with the Italian suppliers whose products are obsolete and still have a large lead time is highly demeaning to the company in terms of professionalism and quality. The reason Intersco Asia Pacific was losing so many of its customers was because some of them were getting impatient, waiting for their products to arrive. Also, having to import from Italy because that was the main supplier while the time of Intersco Group is a major setback for Intersco Asia Pacific. Intersco group is located in Milan; therefore products from Italy are best suited for the market that it serves. Having moved to Malaysia, Intersco Asia Pacific has the right to seek new suppliers whose products are fit for the current market, and flexible to adapt to changing trends.
The third and final recommendation for Intersco Asia Pacific is to employ technological advancement as fast as possible because it is only through technology that a lot can be accomplished. For example, it is through technology that the company shall be able to assess the quality of the products they send out to the market. Moreover, for a business to remain competitive, it has to do so from all fronts, and technology is among them.
On the other hand, the company should adopt technological intensive approaches rather than labor intensive approaches during the production of their products. Having more technology and less human input in the factories ensures that wages are kept at a minimum, which in turn increase the profits for the company. The problem of reduced retirement age from 65 to 60 has greatly affected the company’s profitability in terms of retirement benefits. Also, the costs of recruitments and trainings have set back the company in terms of revenue because with the increase in retirees, so does the company has to hire and train more personnel. Therefore, from the data collected and analyzed, it is important for Intersco Asia Pacific to adopt a technological approach in terms of production mainly because it saves both on the cost of production and the relative time taken to produce the required products.
This study has been most insightful into the potentials, threats and risks that face a new company in a new market. The process of data collection for this study was carried out without prejudice or presumptions and, therefore, the recommendations given are solely as a result of the careful analysis of data obtained during research. It is, therefore, my opinion as the researcher and the writer of this dissertation that if the recommendations given can be adopted into the company, then profitability is guaranteed, market forces notwithstanding.