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CASE APPLICATION NO.1 - A.S. Watson Group

A.S. Watson Group experienced significant organizational changes in the late 1990s through mergers and acquisitions that expanded their business into Europe and Asia. This required overcoming internal changes like new strategies and technologies as well as external changes like new regulations. Their philosophy of helping customers "Look Good, Feel Great, and Have Fun" through personalized service, shopping experiences, and products differentiates them from competitors. Their new business model of personal care stores providing one-stop shopping with excellent customer service and own brands was pioneering and offers lessons for other companies in targeting niche markets. Their long-term success depends on continuing to innovate products and services tailored to individual market preferences.

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3K views2 pages

CASE APPLICATION NO.1 - A.S. Watson Group

A.S. Watson Group experienced significant organizational changes in the late 1990s through mergers and acquisitions that expanded their business into Europe and Asia. This required overcoming internal changes like new strategies and technologies as well as external changes like new regulations. Their philosophy of helping customers "Look Good, Feel Great, and Have Fun" through personalized service, shopping experiences, and products differentiates them from competitors. Their new business model of personal care stores providing one-stop shopping with excellent customer service and own brands was pioneering and offers lessons for other companies in targeting niche markets. Their long-term success depends on continuing to innovate products and services tailored to individual market preferences.

Uploaded by

Maria Lee
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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MA. LEE E.

MAESTRECAMPO
CBAROM-1

MIDTERM Case Application 1- A.S. Watson Group

1. What kind of change processes did A.S. Watson Group experience since the 1990s?
Discuss the activities that were conducted to smooth the change?

A.S Watson Group since the late 1990s experienced a series of Organizational
changes in the company. The changes that occurred in the organization where mainly the
expansions that had been made of the business. They launched a number of merges and
acquisitions in Europe and Asia since the late 1990s. Due to this it had to overcome some
internal process of change such as new strategy for the newly established organization,
change in the composition of workforce, new and innovative equipment and technology for
the new expanded work conditions. Additionally, some external changes had to be dealt with
as well such as new government laws of the new countries they started operating in and
customizing consumer needs according to geographical preferences.

2. What’s your interpretation of the company’s philosophy “Look Good, Feel Great, and Have
Fun? How does such philosophy make A.S. Watson Group’s personal care store differ from
its competitors?

In recent years A.S. Watson Group highlighted its uniqueness with the proposition to
help customers to “Look Good, Feel Good and Have Fun”. Everyone wants to look good and
feel great. So, A.S. Watson Group take it as their mission to help people around the world to
"Look Good, Feel Great, Have Fun”. They also offer a unique experience to customers
through professional advice, interesting shopping environments and the promise of great
value every day.It will give their customers more confidence to buy their products. A.S.
Watson Groups top manager believes that appropriate training training will facilitate
employees to understand their strategy. The company always provide skilled employees in
their stores.

3. What could other companies learn from A. S. Watson’s Group “new business model?

The new business model that was developed by A.S Watson was a ‘personal care
store’ that was established in more than 15 Asian countries, which offered food, drugs,
health and beauty products in the store. This store holds the concept of one stop shopping
but specializes on excellent customer service and sells its own brand products. There are a
few important aspects that other companies should learn from A.S Watson Group’s new
business model. A.S Watson was the first business to identify and bring a solution to fulfill
the needs of their middle class consumers. Other companies could take a lesson from them
in how to target the niche market and work with a set of consumers all over geographical
targets repeatedly, in gaining a positive financial return. Moreover, the research and the skills
they gave to its employees as they directly contact with the consumers, for better progress
was also a thing that other businesses should acknowledge.

4. What underpins A.S. Watson group success?


A. S. Watson Group was the first retailer to realize the importance of the emerging
middle-class customers and develop a business model to meet their needs. However, such
first-movers advantage will not be sustainable as competitors can easily imitate its business
model. Into its 175th year of operation, the firm's continued success depends on its
competency to provide innovative products and services in response to individual market
preferences.

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