It is chock full of value chain choices that appear to have made considerable difference to his firm’s success:
- Building a dedicated distribution facility in Los Angeles (thus cutting out the middle-man and accessing those rents)
- Tapping into the retail outlets of Target across US (and helping them to go upmarket)
- Jumping onto parallel value chains in terms of the beauty school, body and bath, skincare and now even health spa and hotel businesses (leveraging strong brand awareness and relatedness)
In an international business sense, the firm doesn’t seem to have been hampered by any particular liability of foreignness. I guess it might be hard for a consumer to work out where the product is from anyway…. Greece? France? Australia? Austria?
Tags: Australia, business, cosmetics, entrepreneurs, entrepreneurship, fashion industry, finance, International business, Internationalisation, luxury, Napoleon Perdis, Strategic management, Target, Value Chain