Question

Khalil Mahmoud and his 4 brothers started Mahmoudco Group 15 years ago. Today, they own a trucking company called Mahmoud Co Trucking, a furniture company called Mahmoudco Furnishing, and a car dealership called Mahmoud Co Cars. Mahmoudco Group recently opened a Pharmaceutical company in Dammam which they called Mahmoud Co Cosmetics. Their idea was to produce "less expensive, available and affordable" cosmetic brands for sale in the local market. Their 5-year goal was to become the affordable cosmetics provider in the region. They produce their own lipstick brand called Jamila; eye shadow brand called Oyoun; hand cream brand called Na3ema. In their long-term plan (3-5years) they decided to open 10 retail stores in the major cities in the Kingdom to market their cosmetics brands, In addition to contracting 3 major retailers in the region to carry their brand, Mahmoud Co Cosmetics also bought tot brand from a competitor company going out of business. One year ago, the company sold lomila Brand to a competitor. What mire environmental elements could effect Mahmoudco Cosmetics? Name at least 2015 points) What macro-environmental elements could effect Mahmoudco Cosmetics? Name at least 2 (1.5 points) What could be a competitive strength for Mahmoudco Cosmetics? Name at least 22 points)

Answer 1

Micro - Environment Elements that could affect Mahmoudco Cosmetics -:

1. COMPETITORS - AN increase in number of competitors or new entrant can affect the company
2. RESELLERS - It includes 3rd party sellers such as retailers. Since the company here has decided to sell their product by retail stores also so, now they will be dependent on these dtores for their high sales.

Macro- Environment Elements that could affect Mahmoudco Cosmetics -:

1. Demographic Factors - it refers to the type of population whether male,female,adults,old,young population. Since cosmetics business targets young female customers , therefore a demography of high young females would benefit the company.
2. Social and Cultural Forces - It will affect the company as it takes into account the purchasing habits of the customers,their lifestyles ,beliefs etc.

Competitive Strength for Mahmoudco Cosmetics -:

1. Affordability(less expensive products)
2. Accessabilty (has acess to market by 10 retail stores and 3 major retail stores meaning they have managed to reach the customers efficiently).