Question
Company Analysis of Sephora Beauty
Part A
Undertake an analysis of a chosen organisation’s business model.You should be using the Business Model Canvas to undertake your analysis along with reliable secondary data about the organisation’s activities. Such data may be obtained from the organisation’s Annual Report and other strategy documents along with secondary market data from, for example, Euromonitor.Identify the strengths and weaknesses of the organisation’s current business model in the context of the environment that it operates in (including the competitive landscape and key customer trends).
Part B
Based on your analysis in Part A, propose a digital transformation initiative that can assist the organisation to improve and enhance its business model and ensure that the organisation becomes more relevant and competitive. Here you should again draw on your secondary research about the competitive landscape and key customer trends.
Frameworks
In addition to the Business Model Canvas, you are encouraged to use additional frameworks from the course in your analysis (Part A) and/or to propose your new digital transformation initiative (Part B).
Business model canvas example additional frameworks from the course in your analysis (Part A) and/or to propose your new digital transformation initiative (Part B).
These are additional framework
1.Innovation Ambition Matrix
2.Typology of Digital Transformation
strategies
Expert Solution
Sephora beauty is a
French-owned retail brand that has, over the years, shifted from a retail
company to its label, producing products from its brand. The range of products
provided by the brand can be generally categorized as beauty products, with
cosmetics ranging from skin care products, nail colors, makeup products, and
fragrances, among others (Sephora:
consumers by age group U.S. 2016 | Statista, 2016). Since its formation,
the brand has maintained relevance in the beauty and retail industry, opening
many stalls worldwide. Sephora has a business model that has enabled it to
identify its suppliers, source of raw materials, market, workers' competency,
and location to improve its sales. Studying its evolution, competitors,
financiers, customer relations, suppliers, and staff diligence are necessary to
understand how businesses, especially retail businesses, can improve their
operations and maintain and expand their market.
Part A: Business model canvas
|
Key partners -
Being a retail store, Sephora's main
partners are designer beauty products in makeup, skincare, and fragrances,
among others. The partners have evolved based on market popularity over the
years. Some key suppliers within the last two years include Shenzhen Color
Cosmetics Products Ltd and Tianjin Crafts Technology Ltd, both in China,
offering supplies of a wide variety of makeup brushes and Jada rollers used
as skin care products (Sephora
Suppliers, Manufacturer, Distributor, Factories, Alibaba, 2022). -
The most recent blooming partnership is
Kohl's Sephora partnership, intending to have over 400 Sephora physical shops
worldwide. -
Sephora has over 1,000 suppliers and
partners worldwide (Sephora
Suppliers, Manufacturer, Distributor, Factories, Alibaba, 2022). |
Key activities Sephora’s activities are in
sync with the vision and mission of the retail organization. Therefore, its
activities include; -
It is maintaining an active social media
presence and proper customer treatment to build loyalty with its customers. -
It is improving the technology within
its physical stalls for faster customer service and a better physical
shopping experience. In addition, technological adaptation to the online
platform allows the company to expand its market base, intending to offer
these customers a similar shopping experience to that of physical clients. To
achieve this, Sephora continually updates its website and its official app
and updates demos on how to use products they offer on its various social
media platforms (iBot, 2020).
|
Key Resources -
Sephora has a wide range of financial,
physical, and human resources. -
Sephora's physical resources are the
physical locations of its stores in North America, Asia, Canada, and Mexico. -
The Mississippi, Maryland, Nevada, and
Utah stores have over 1600 employees who transfer products from the physical
stores to customers' doorsteps. -
The financial resources are needed to
pay the staff, run the technologically advanced stalls, continually renovate,
and expand the operations to different states and countries. Additionally,
financial resources are needed to pay obligatory taxes in the states and
countries the stores are located in. |
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