Lusch

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Contents

1. Introduction 1

2. Competitive position 2

2.1 Five Force Model analysis 2

2.1.1 Threat of new entry 4

2.1.2 Threat of Substitutes 4

2.1.3 Bargaining power of buyers 4

2.1.4 Bargaining power of suppliers 5

2.1.5 Competitive rivalry 5

2.2 Lush’s competitive advantages and market share 5

3. Trading across borders 7

3.1 How Lush does its trade 7

3.2 Factors that Lush needs to consider when trading abroad 8

3.2.1 Political factors 8

3.2.2 Economic factors 9

3.2.3 Sociocultural factors 10

3.2.4 Technological factors 11

3.2.5 Legal factors 11

3.2.6 Environmental factors 12

4. How Lush will make improvement for its future business 13

5. Conclusion 14

Reference 16

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3. Introduction

Owing to the development of global economy, the international expansion of companies has already been a common phenomenon. More and more companies prefer to explore overseas markets in order to enhance companies’ development. Competitive position of a business can help companies to make them understand their situation clearly to fit with external environment and manage their business better (Johnson, et al., 2011). However, companies also need a dynamic system within the internal environment in order to increase competitive advantages to respond to external changing environment (De Wit and Meyer, 2010). There is no doubt that the MNCs can’t ignore the influence from external environment in different markets. In this case, companies should figure out their position in the markets. And then they can understand well about the external factors that can influence their operation to guide them make appropriate adaptation and improvement. Porter’s Five Forces analysis can help companies to figure out their competitive position in markets and PESTLE analysis can help them understand what external factors must be considered when they are planning to continue trading across borders.

Lush is a handmade cosmetics...