1. product unique is the product is “HALAL”. No

Competitive Rivalry

In this factor
Simplysiti has identified that the industry has many competitiors. “Siti said she entered the cosmetic industry after two years
of preliminary research with AC Nielsen to study the market and target
customers.”However what makes SimplySiti product unique is the product is “HALAL”.
No doubt their competitior SAFI also produces halal product but the Brand
identity “SIMPLYSITI” itself carries the brand image well to the customers.
Apart from that the brand has a huge number of customer. SimplySiti product has
many followers as Siti herself gains a lot of followers. This makes the product
gain more loyalty.

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Supplier Power

product from SimplySiti has to undergo strict assessment and tests. With
expert  help, SimplySiti choose what
ingredients and materials to use in the products at every stage. “Siti revealed
that SimplySiti products are made in South Korea as the country has more
expertise in the cosmetics industry”.
The Hanbul Cosmetics factory in the Choongbook area
(an hour away from Seoul) is where her products are manufactured. “I chose
South Korea because the cosmetics industry there has the latest technology. It
is one of the important hubs for cosmetics in the world today,” she said,
adding that the ingredients are gathered from various suppliers in the country. Therefore since, it’s
a trustworthy factory it’s easier to import the product from there. Apart South
Korea will well know in producing skin care product. It will be easier to
switch supplier in South Korea itself if necessary.


Buyer Power

Siti has a huge group of fans. This will make her brand and products
famous. With an extra effort in marketing techniques SimplySiti products can
gain its buyer power. It is proven that Argan Men product will gain popularity
if proper marketing and promotion is implemented. Competitors have the similar
pricing to SimplySiti Argan Men product. Therefore it’s not difficult to gain
buyer power.


4.Threat of Substitution

The market has a lot of substitute product.
The main thereat will be from product 
like Safi, Nivea, Garnier, Loreal and other. Each product has its own
uniqueness. However, as mentioned earlier, Siti has chosen, a latest technology
to produce the product will help the product to sustain in market. Apart from
the, the other substitute products are also sold at a similar price. Therefore
the pricing of the substitute product will not affect or threaten the
SimplySiti profitability.


Threat of New Entry. 

The market has a wide
range of competitors and also new entries. A lot of new skin care products are
been introduced into the market. However due to a lot of unsafe ingredients
such as mercury is been added, many buyer are being extra cautious on selecting
the products. Many new products does not have the Kementerian Kesihatan
Malaysia (KKM) approval certificate to recognize the products are safe. This
has leaded the new entries to leave the industry fast. SimplySiti products has
been proven safe and Halal therefore its product can sustain in the industry
longer. f an industry has numerous competitors who all operate at an equal
level of product or service quality, then there is a higher threat of
competition. Companies may feel the need to engage in more aggressive
activities to gain a higher share of the market If they do not enjoy any sort
of clear advantage over competitors. SimplySiti products have strong and
durable barriers to entry; therefore SimplySiti can preserve a favourable
position and take fair advantage of it.