1. Overview
2. Business activities and core competency
Ⅱ. Outward Environment Analysis
1. General Environment Analysis
2. Analysis of Cosmetics Market in India
3. 5 Forces
Ⅲ. Analysis of India Market
1. The characteristic of India market
2. CEPA
3. Politic
Ⅳ. Entry Mode - Wholly Owned Subsidiary
Ⅴ. Conclusion
(1) The business performance of AP is mainly divided into two categories; Cosmetics and MC&S (Mass cosmetics and sulloc). The portion of profits generated by these performances is shown below.
Picture 2 Sales breakdown, IR presentation, 2010
(2) Products
Costmetics
MC&S
(3) Organizational Structure
In 2006, AMORE PACIFIC decided to split the company into two main sectors, which is ‘Taepyungyang’
for investment and ‘AMORE PACIFIC’ for business activities. Making up ‘Taepyungyang’ as a holding company and ‘AMORE PACIFIC’ as a practical business company could lead them concentrate on their core competency and reduce risk on management issues. Currently ‘Taepyunhyang’ has changed into ‘AMORE PACIFIC GROUP. Ltd’
(4) Core competency
a. R&D : AP is persistently investing on Research & Development due to the specialized characteristic of cosmetic industry. They invest 3% of annual profits on R&D process each year, which is the similar amount with global companies like Loreal. The goals are to develop sustainable products, pursue ongoing product innovation, assume ever-greater responsibility for all product aspects, and stay close to the customers through open communication.
b. Marketing : Well-positioned product lines according to their functions and development of sustainable products, customer-related marketing promotions such as experience marketing and locally differentiated marketing process and strong distribution power in global markets have brought them a stout construction of their marketing capabilities.
c. Production : Applying 6 sigma innovation to the whole business sectors and construction of ERP system could lead AP’s decision process shorten. Specially, 6 sigma innovation in manufacturing line could lessen product deficiency and maintain the best quality of the products.
d. HR management : AP has highly focused on developing capabilities of employees. By offering them a high quality of training, AP has given lots of opportunities to their employees to develop skills required in business activities.
(5) Global Expansion

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