Competitive Landscape Analysis the Business

Competitive Landscape Analysis

The business environment that influences companies' activity determines the strategies they are likely to develop and implement in order to counteract the actions of their competitors. The highly competitive environment in certain industries has great influence on the prices of the products and services in case, determining modifications in the purchasing behavior of customers. This is because an increased number of competitors leads to reduced prices for their products.

Personal Care Appliances Industry Analysis

The personal care appliances market is continuously developing. Several reports that present analysis of this industry segment reveal the significant expansion that is likely to continue to take place. Such a report developed by Global Industry Analysts states that the sales on global level in this industry will significantly increase. The crisis that has affected the individuals, companies, and governments in most countries was not able to inhibit the sales growth in this industry. This situation can be attributed to the sustained growth in the personal care appliances industry (PRWeb, 2011).

There are several factors that seem to influence the development of this market. The increasing sophistication of customers' lifestyles is one of the most important factors that determined manufacturers to increase their production and profits in this industry. An increasing number of customers become more aware of the benefits provided by technological developments in the personal care field. These customers can gain muscles, lose, weight, or improve their appearances with the help of personal care appliances that can be found in salons or can be purchased for individual use.

The increasing income levels of certain customer segments are another factor of importance for this market. This allowed these customers to spend more money on their looks by investing in personal care products and appliances, and on the services of specialists in the field. In addition to this, the increasing consciousness about hygiene, health, and looks has determined retailers to increase their sales in such business sectors. The sales in this industry are expected to continue to increase.

Some of the segments in this business have significantly developed, others have stagnated, while other segments have reported reduced sales. The fastest developing segments in the personal care industry are represented by hairstyling products, massagers, trimmers, electric toothbrushes, shaving systems, and others. The technological developments applied to hairstyling systems have led to innovative products that improve customer experience. The increased interest for such products determines individuals to purchase innovative appliances, even if they are more expensive.

The strongest demand for such products is attributed to Europe. The most developed markets in Europe are represented by Germany, UK, France, and Eastern European countries. The U.S. is another important market in the personal care industry. The potential of developing markets in Asia is an opportunity that most companies in this industry are taking into consideration.

Helen of Troy Analysis

There are numerous companies that address the personal care products industry. Helen of Troy is one of the most important companies in this business sector. However, the company must focus on counteracting the effects of several risks that influence its activity. Some of these risks have maintained their influence on Helen of Troy's activity, others have been successfully addressed by the company through its strategy, while others have developed as a result of the challenges of the business environment.

Some of these risks have remained the same from 2000 until 2010. Such a risk is represented by the company's ability to deliver products to its products in a timely manner and the satisfaction of customers' quality standards. The company's projections of product demand, sales, and income, are highly subjective and there is the risk that they could significantly vary from these projections. Another continuous risk is represented by the fact that large customers might take certain actions that could adversely affect the company's profits.

Some of these risks were taken into consideration in 2000, but they do not present importance in 2010. Such a risk is represented by the newly acquired product lines and subsidiaries. The company also faced risks like those associated with international manufacturing and operations. Another important risk that seemed to significantly affect the company's activity is represented by its reliance on certain customers.

In the case of Helen of Troy, there are some risks that did not affect the company's activity in 2000, but that are currently taken into consideration by its strategy. Such a risk is represented by the fact that the company depends on third party manufacturers that are located in Asia. Another important risk that has significant effects on the company's activity is represented by disruptions in the U.S. And international credit markets. In addition to this, the acquisitions that the company makes might not reach the expected objectives regarding their profitability (Helen of Troy, 2010).

Spectrum Brands is one of the most important competitors of Helen of Troy. Spectrum Brands also faces certain risks that have basically remained the same from 2000 until 2010. An important risk consists in the company's inability of retaining qualified personnel. This means that the company was not able to significantly improve its human resources strategy (Spectrum brands, 2010). Another risk that the company has continuously addressed refers to the sales of certain seasonal products that can determine its operating results to fluctuate, and not allowing the company to make correct estimations. The international business risks that affect the company's activity are expected to continue their influence on Spectrum Brands.

The risks that Spectrum Brands addressed in 2000 are somewhat different from current ones. The company's struggle for market share in a highly competitive environment is one of the most important risks. Another risk that seemed of great importance in that period is represented by the company's interest in building a talent pool. In addition to this, the branding strategy that the company was developing and implementing presented several risks.

The most important risk that the company must currently take into consideration and that was not important in 2000 is represented by the international economic environment. The crisis has affected the incomes of individuals and companies, determining a series of modifications in the personal care industry. The numerous mergers that the company is interested in might also determine several risks because of the inability of correctly assessing the benefits. The consolidation of retailers and the dependence on a small number of customers is considered an important risk that must be addressed by the company's strategy.

Colgate Palmolive is another important competitor on the personal care market. Same as in the case of Helen of Troy, Colgate Palmolive must manage several business risks. The most important risk that the company faced in 2000 and in 2010 is represented by the risk associated with significant international operations. The current globalized business environment has determined the company to depend on the sales on markets different than that of the U.S. In addition to this, another risk is represented by the company's dependence on developing innovative products that allow Colgate Palmolive to maintain its market share. Another risk that remained the same is represented by the volatility of materials and other costs that influence the company's profitability.

There are also some risks that were present in 2000, but that do not currently have much importance. Such a risk is represented by addressing new markets in Europe and Asia. This is because such strategies require significant investments. Another risk was represented by the information systems used in that period. The technological developments did not allow the company to benefit from current innovations. This determined a series of problems, most of them regarding the supply chain management. The company's dependence on a small number of suppliers is another risk that was considered important in that period.

The risks that are present in 2010 in comparison with 2000 are quite significant. The political and economic instability in the world's most important markets are some of the elements that influence Colgate Palmolive's activity. The modifications in the policies of the company's retail trade customers represent important risks that can lead to increased dependence on some of the retailers in developed markets. Another important risk is determined by the global manufacturing activities.