Strategic Management: Case of Kiehl

Strategic Management: Case of Kiehl

TABLE OF CONTENTS

INTRODUCTION:        3

ANALYSIS OF THE COMPANY:        4

SWOT:        4

Strengths:        4

 Weaknesses:        4

Opportunities:        5

Threats:        5

Porters Five Forces:        5

Bargaining Power of Suppliers:        5

Bargaining Power of Buyers:        5

Threat of New Entrant:        6

Threat of Substitute:        6

Competitive Rivalry:         6

IDENTIFICATION OF PROBLEMS:        6

RECOMMENDATIONS:        7

Strategic Fit:        8

Ansoff Matrix:        8

CONCLUSION:        9

REFERENCES:        11

1. Introduction:

Kiehl's was founded in 1851 in Manhattan’s Greenwish Village (East Village of New York City), by John Kiehl, a European apothecary. In the initial stage, the pharmacy was designed as an old European chemistry lab, where pharmacists grind medical herbs corresponding to the prescription of their patient with a medicinal and botanical knowledge. Kiehl started off as a family business, however was able to built a strong identity amongst the target consumers and therefore was able to become popular (Kiehl 2014a). Since its inception till now, Kiehl's has kept its authenticity and preserve the quality of its offering. It has worked over its core strategy that is to the production of healthy, natural and effective products that is appreciated by a certain type of customer (Kiehl, 2014b).

In 1910, the herbalist Irving Morse becomes the apprentice of Mr. John Kiehl. When he latter retires, he bought the pharmacy but it retains the name Kiehl's that was already known. In the early 1980s, Kiehl's continues to make apothecary and homeopathy products. As the years passed by, company became more famous and attracted diversified customers base. In 2000, the owners, overwhelmed by their success, sold their brand to the French cosmetics giant L'Oreal. The expansion of shops begins in 2001 with the opening of the first independent store in Manhattan after the San Francisco and one in London in 2002, in few years the number of outlets grew to 260 outlets in the world, with 1,000 stands stores. Now, the brand is present in 38 countries, with 760 outlets (including 130 concepts blinds) (Kiehl, 2014c).