Entrepreneurship and Business Development: Assessment of the Cosmetic Industry and Business Model Canvas

ENTREPRENEURSHIP
AND BUSINESS
DEVELOPMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Business Concept........................................................................................................................3
Assessment of the Cosmetic Industry.........................................................................................4
Key elements of the porter's value chain....................................................................................8
Business model canvas................................................................................................................9
Qualitative and quantitative module in the assessment of risk.................................................11
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16

INTRODUCTION
Entrepreneurship is the concept in which an individual person initiates the creative innovative
idea and executes with the ability and desire to establish and succeed in a start-up business with
the motive to make profits. It plays a vital role in the economy as establishment of new business
will generates more employment opportunities which boost the overall growth and development
of the country. Entrepreneur identifies the needs and demands of people and takes as opportunity
to implement the business idea. This report will illustrate new business concept including various
key components, along with assessment of industry, market, organizational and financial
feasibility. Apart from this, the study will also highlight key components of value chain model
and business canvas model along with appropriateness of qualitative and quantitative models
which determines potential risks.
MAIN BODY
Business Concept
As being an entrepreneur, the new business requires an innovative idea which can be
implemented in the existing market by offering unique product and services to have a financial
profit. Nowadays people are becoming more concern about their skin and lifestyles. By
introducing an organic beauty products and services will help the people to overcome from
various skin related issues (Ratalewska, 2018). Organic personal skin care products are made up
of natural minerals, organic plant extracts like aloe Vera gel, fruit juices, tea, coffee, milk, honey
etc. With the inclusion of natural substances the product are able to share their unique features
into diversified market place. Organic products are highly in demand as they are less likely to
cause allergic reactions, inflammations or irritations. Hence, organic products are the best
suitable product for sensitive skin people and requires immense care.
The business of selling organic skin care products will highly target the consumers who
are more concern about their skin. Generally the women's of age 18 and more are preferable for
the adoption of organic beauty care products as the products are extremely free from any kind of
harmful chemicals. Thus, capable to replace other harmful substances or beauty products form

the market space. Since there are no harsh chemicals in the products, the products will leads to
less wastage and toxins going down the drain. Buying naturally and sustainably sourced products
can be much kinder to the environment. The organic products cover a diversified range of
properties and attributes. These products are certified and clinically tested in the bio labs to
check the reality and pureness. The consumers will be more assured of the organic products by
having a certified mark (Morozova, Popkova and Litvinova, 2019). Using natural, organic skin
care products such as coconut oil, honey, aloe Vera and Shea butter are known to soothe,
nourish, moisturise and promotes smooth skin. Although the results might be comparatively
slower, but efficient enough to provide better results in long term to their users
From the records it has been observed that the global natural skin care product's market
size is expected to grow at a compound annual growth rate of 5% in upcoming years (Leung, ,
W.H. and Ho, 2019). By newly establishing the business of organic skin care products will
contribute more on overall expansion and growth in cosmetic industry. The ideal location for the
business will be more preferable near to the public areas or where the movement of consumers
are more likely to be enhanced such as malls or market. Further the business can also expands its
services globally with the help of appropriate use of technology. By selecting and applying
suitable promotional strategies the company will lead to higher profits and able to increase the
overall productivity of the firm. The increasing awareness regarding the quality of beauty
products and services has rapidly boosted the cosmetics industries worldwide. Due to increase in
demand of the organic skin care products the market competition of similar products also
enhanced. Cosmetic industries are fast growing and are projected as a future growing sector in
the market which has overwhelming demand for both male and female globally.
Assessment of the Cosmetic Industry
Industry Analysis- This is a tool which helps to understand a company's position in the
market space in front of their other competitive firms that produces similar kind of products and
services. It helps the business to identify various opportunities and threats that are coming their
way and gives them a strong idea for the present and future scenario for their expansion in the
industry (Bruijl, 2018). This can be better understood with the help of Porter's 5 force model
which make up the competitive environment and thus enhance the profitability of the business.