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Strategic Management Analysis of Amore Pacific Company Case Study (Case Study Sample)


The paper was based on a case study of Amore pacific company whereby the writer was required to analyse the company's strategic management and to discuss why the company is strategic by using relevant theories and tools (swot, pastel, porters five force).


Strategic Management Analysis of AmorePacific Company
Author’s Note
Strategic Management Analysis of AmorePacific Company
A short background of AmorePacific Company
AmorePacific Corporation is a South Korean-based beauty and cosmetics firm. The conglomerate was started in the 1940s following Yun Dok-Jeong's venture into selling camellia oil as a product for treating the hair in the village if Kaesong (Yue, 2016). However, Suh Sung-whan, her second son, inherited the management of the firm but later handed over the business again to his second-born son Suh Kyung-bae in 1977. The data collected in 2016 showed that Suh Kyung-bae's success in the business has made him be the second-richest man in Korea. Founded in 1945, AmorePacific Firm has grown to become the world's 14th largest cosmetics company. However, it is considered as Korea's number one blue-chip beauty firm. Currently, the firm owns 30 well-established brands and has been growing rapidly across the world. At present, the firm deals in 33 different health, beauty, and personal care products.
The range of products is such as Mamonde Cosmetics, Etude House, Laneige, Innisfree, Annick Gouta, and Lolita Lempicka (Yue, 2016). Analysis of the AmorePacific's financial statement depicts that its current revenue size, as calculated in the first quarter (Q1) of 2019, is at 1, 451.3 million dollars (Yue, 2016). The firm serves various markets, including Korea, Japan, Shanghai, France, and Hong Kong. Currently, the firm has 4,936 employees in Korea, and 6,618 employees oversee – it is ranked in the second position among its top competitors worldwide (Śliwiński & Łobza, 2017).
Mission and vision statement of the AmorePacific
Mission statement: Beautify the World
Vision Statement: Asian Beauty Creator
SWOT Analysis of the AmorePacific Corporation
A business's strength refers to the specific characteristics adding value to a firm by making it more unique, special, and advantageous compared to its competitors. A critical analysis of the AmorePacific firm depicts that the firm has been able to build a new customer value proposition by understanding their customers' diverse lifestyles along with discovering their unmet needs rather than just focusing exclusively on the patterns of customers of using existing cosmetic products (RHO & LEE, 2016). Consequently, this has enabled the firm to cover all points of contact with the existing customers within the domestic market. Also, the firm has established and operates a “Customer Strategy Team” that is responsible for collecting and analyzing quantitative data as well as a Beauty Research Team charged with task of collecting and studying qualitative data through its multiple avenues – this helps it in establishing relevant information for its growth (RHO & LEE, 2016).

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