Regional Sales of Multinationals in the World Cosmetics Industry

Chang Hoon Oh and Alan Rugman

European Management Journal, vol. 24, issue 2-3, 163-173

Abstract: This paper analyzes the regional characteristics and strategies of multinational enterprises (MNEs) in the world cosmetics and toiletries industry, based on the new work by Rugman on regional strategy. We test the proposition that MNEs may asymmetrically develop their upstream and downstream firm specific advantages (FSAs). We find that the downstream activities of the MNEs in cosmetics are home region based but that upstream activities are more so. Further, the asymmetry of FSAs in the world cosmetics industry is mainly due to the atypical Asian entry strategies of North American and West European cosmetics MNEs. Two case studies confirm how variations in FSAs can affect regional strategy.

Keywords: Regionalism; Regional; strategy; Cosmetics; industry; Firm; specific; advantage; Avon; Gucci (search for similar items in EconPapers)
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Working Paper: The Regional Sales of Multinationals in the World Cosmetics Industry (2006)
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