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exports expensive and imports dearer

Skills shortage

Not enough R&D

Lack of invention and innovation

Inefficient industry

Competition is fierce in both mass & premium markets

Products can fall quickly out of vogue in a fashion led-market

Safety and efficacy of new products is under scrutiny & must comply with increasing standards

Sales are seasonal

Considerable investment is needed for new products & to maintain high profile

Reductions in barriers to trade therefore increasing trade partners

Fill skills gap from migrants

Larger market in which to trade

Increase in retail sales value of mass market ethnic races

Profitable income through advertising and marketing ,new product innovation

Due to celebrities increase, glamour of fame is seeked by consumers

Manufacturers and retailers jumps into ‘green bandwagon’ by introducing natural and organic-ingredients in their products

Increased competition due to cheaper labour etc

Businesses relocate abroad due to cheaper costs

Reduced E.U. spending on new countries require investment

Cheaper imports from abroad

Considerable sums are spent protecting their upmarket brands

Scare stories appear in media about side effects often leading to downward of sales

Ageing population may be disadvantageous as young populations are the biggest consumers of personal and beauty care products

Very low Discounts can lead to damaging image when buying

Source: Euroinvestor.co.uk, 2010

South Africa

STRENGTH

WEAKNESS

OPPURTUNITY

THREATS

Excellent Physical and Financial Infrastructure

Strong government policy framework

Sound and efficient financial services and ICT sector

Well established international trading regime

Low skill levels

High cost of labour

Unstable currency

High entry barriers for foreign investments and business

Governments lack of expertise and experience in governing and international relations, trade negotiations in particular, ethnic divisions

SADC preferential trade agreements

Aggressive skills development program

Highly sophisticated, sound banking and financial services sector

African growth and development program granting access to foreign markets mainly US

Stock theft

Strong Rand

High unemployment and crime rate

Red tape and burovcracy

High cost of doing business in SA

Poorly negotiated free trade agreements

Cost of labour and labour legislation which is inflexible

Drought and Foot and Mouth disease

Source: Research and Markets.com, 2010 & dti.gov.za

The main competitors in UK hair care products are shown in the table below

COMPANIES

REVENUE/YEAR IN 2010

Unilever

$53.418 Million

S.C.Johnson & Sons

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