Sa Sa

Executive Summary

Established in 1978 by husband and wife, Elanor and Simon Kwok, Sa Sa has become the leading cosmetics retail chain in Asia. Its scope of business has changed over the years and it is currently adopting a focused strategy with two major scope of business – cosmetics retail and brand management.

By adopting an outside-in approach, this report aims to analyze the current performance of the company. Internal and external environments of the company will first be discussed in the report. With this analysis, recommendations on what Sa Sa can do going forward will be provided, with three various strategies of the companies discussed: business-level, corporate and international strategies.

The performance of Sa Sa has been spectacular. However, after in-depth analysis, Sa Sa is currently experiences the challenge of sustaining and growing its business over the long term. Our group has identified three areas of concern which could limit its growth potential: due to rising operational costs, intensifying competition in the industry coupled with the worrying performance of its outlets in Mainland China.

To address the concern of rising operational costs, we propose the gradual move towards online retailing and consolidation of physical stores. To emerge successful among its competitors, further products diversification can be considered. International expansion into Indonesia will be able to reduce Sa Sa’s reliance on its current markets and cushion the worrisome performance in Mainland china.

In order to maintain its leading position in Asia as a cosmetics retailer, immediate attention is needed in resolving the key issues faced by the firm. Additionally, it is pertinent that Sa Sa constantly revises the proposed solutions, based on the developments in the industry and receptions of its targeted marketed. By addressing the short term concerns while keeping its long term vision in mind, our group believes that Sa Sa will be able to entrench its...