Problem Analysis of Sephora
Introduction
Sephora is a leading organization offering luxury cosmetics and has its roots in France. This organization was founded in 1970 with the target of the high-end market in the fashion industry. An example of a problem that could arise during the preparation of orders during online shopping order procedures is the overvaluing of the items. Although this organization is built on the goal of profit making and targeting of high-end markets, the items on sale could be overvalued for the target market (Yadav & Pavlou, 2014). The organization has failed in some countries such as Japan because of the high-end approach used in choosing the process of goods. The problem could occur based on the organizational target of increasing sales compared to an increase in profits. The problem analysis focuses on the issue because it could lead to a reduction in the profits and sales (Alaei, Behravesh, & Karegar, 2013).
A reduction in the profits is likely to discourage the expansion of the company to other markets that are untapped. Consequently, a solution to this problem is necessary to prevent the negative performance of Sephora. I am best suited to handle the problem at Sephora because of the vast experience in problem analysis and problem-solving. Some of the issues elaborated include the difficulty of getting the customers to buy the overpriced items (Danziger, Hadar, & Morwitz, 2014).Process AnalysisThis section describes the problem in detail and further explains why the problem is of concern to the organization. While Sephora’s trademark is high-end luxury items, the market has a limit on the value of items that the company can sell. When the prices are high but affordable, the customer base is retained, and profitability assured. However, too high pricing of goods limits the number of sales made. This factor affects the overall profits that the organization makes (Danziger, Hadar, & Morwitz, 2014). Aside from limiting Sephora’s profits, the move can damage the credibility of Sephora as occurred in Japan (Yadav & Pavlou, 2014). The problem is also significant because it influences the decision made in management of the brand. People Affected The problem stated affects several people within the organization and in the market that Sephora operates in. First, there is a direct effect on the customers of this organization who will not afford the products that are overpriced in Sephora’s website. The consumer drive will consequently be affected with the number of new customers reducing significantly. Aside from the loss of new consumer market Sephora is likely to lose some part of the already established market. According to Yadav and Pavlou (2014), brand loyalty is crucial in determining the performance of major organizations. Sephora would reduce its market share to rival organizations with the shrinking consumer base.
The other individuals who will be affected by the changes within the organization include the managers of the various branches. In addition, the top management is likely to …
