I have decided on using the perfumes, cosmetics, and other toilet preparations industry as an example of high-tech business. For instance, companies such as Atolla and L’OrĂ©al are considered high-tech due to their innovations in the sphere of service (Mintel News, 2019). The enterprises in this sphere may involve manufacturing both raw material and ready products such as various make-up and hygiene items (United States Department of Labor, n.d.). Indeed, the industry is affected by several macro environmental factors, which yield fluctuations in the economic stability of the companies. In research from Parnell (2014a), these factors are “(1) political-legal, (2) economic, (3) social, and (4) technological” (p. 3). As the industry’s outputs regard the matters of human appearance and health, the demand for them is influenced by social trends severely. Thus, I think the chosen business sector is particularly illustrative for the task.
First of all, I may suggest that a new trend for attractive looks regardless of gender emerged recently and impacts the industry. A considerable amount of attention is being paid to the importance of clear skin and healthy hair. Now the trend applies not only to females but people in general; everyone wants to look presentable. Therefore, the beauty products sphere can extend its customer range and engage non-conservative males in buying. In addition, queer consumers that use make-up products often present a new market’s audience (Riley, 2019). Companies producing cosmetics may start to develop new designs for their goods or address the male social groups in their advertising. In brief, the new beauty standards introduce vast opportunities for enterprises to attract more people to their production.
Another tendency concerns the emerging social activity of customers. According to Owen (2020), “brands will have to engage more with topics such as mental health, exclusivity and justice” (para. 11). New values and revision of traditions cannot be missed by marketing specialists (Parnell, 2014b). Specifically, cosmetics and hygiene manufacturers should pay attention to this inclination. If they would not, their clientele might leave for the rival companies. The possible decision is, again, to redesign and to change the advertising policy. In addition, the industry could broaden or reinvent its commodities. For example, to create products that can help reduce stress or treat other mental issues somehow. In this view, it can be seen that the participants of the business domain can face social changes and turn them into beneficial ones even.
Nevertheless, the same social direction (relating to inclusiveness) may negatively influence the demand for the production of certain items. Feminists and body-positive people cultivate the idea that the human body can be viewed as normal and attractive regardless of corresponding to previously accepted standards. One of these standards is about hairlessness; the tradition to shave legs, armpits, and visible areas is now scrutinized. Consequently, some shaving products might become less demanded by customers. Manufacturers are expected to either handle this issue or diminish the production of unwanted commodities. This illustrates that social trends can unfavorably affect the enterprises’ economy, too.
The other tendency, somewhat harmful for businesses, is a campaign against animal testing. Nowadays, people care about animals’ lives more than ever as the Christian view that placed the human race above all creatures and justified violence against them is criticized. Industries that use the testing are now rejected by various customer groups supporting the campaign against animal cruelty. Evidently, this movement can influence the cosmetics and cleaning output heavily, and managers of these companies are to face the problem when developing strategies. Overall, participation in socially renounced methods of production results in the decrease in the demand for companies’ wares.
References
Mintel News. (2019). 5 brands revolutionising beauty through technology. Mintel. Web.
Owen, E. (2020). The trends that will dominate the social space in 2021. The Drum. Web.
Parnell, J. A. (2014a). The external environment: Political-Legal and economic forces. In Strategic Management: Theory and Practice (pp. 52–77). SAGE Publications.
Parnell, J. A. (2014b). The external environment: Social and technological forces. In Strategic Management: Theory and Practice (pp. 78–115). SAGE Publications.
Riley, R. L. (2019). Beauty brands want to sell queer expression, but it shouldn’t be for sale. Teen Vogue. Web.
United States Department of Labor. (n.d.). Description for 2844: Perfumes, cosmetics, and other toilet preparations. OSHA. Web.