The Extent of Achieving the Competitive Advantage of the Organizations -The Small Business Sector- The Natural Cosmetics Sector - In Light of the Factors of Porter's Model(Case Study of Al-Hashlamoun Cosmetics Factory – Palestine)
1Ehab Mohiuddin Hashlamoun,2Dr. Firas S. Q. Barakat,3 Dr. Ooroubah A. R. Mahmoud
1Head of Al-Hashlamoun Cosmetics Factory – Palestine2Assistant Professor, Department of Accounting, Faculty of Economics and Business Al-Quds University, Palestine
3Assistant Professor, Department of Banking & Finance, Faculty of Economics and Business Al-Quds University, Palestine
https://doi.org/10.47191/jefms/v4-i2-03
ABSTRACT:
The current study aims to identify the extent to which the competitive advantage - the natural cosmetics sector - was achieved in light of the factors of the Porter model, and on the Hashlamoun cosmetics factory in the West Bank between 2018 and 2019. Where the study was formulated through the main question: What is the extent of achieving the competitive advantage - the natural cosmetics sector - in light of the factors of the Porter model, and on the Hashlamoun cosmetics factory in the West Bank? This question is divided into a set of sub-questions.
In order for the study to achieve its goals according to the scientific methodology, a qualitative exploration method for secondary sources and data has been used to uncover criticism and support for Porter models through relevant books and references. Work has also been done on the descriptive analytical approach in the study to analyze the sector and case study through several tools, including the questionnaire It was prepared appropriately based on the main factors of the Porter model for analyzing the sector's attractiveness and other external factors, in order to collect the required data on (8) cosmetic companies natural, conduct interviews and take notes in a case study of a factory Hashlamoun p. For cosmetics, the study used descriptive and inferential methods, through the statistical analysis program (EXCEL ).
The study reached a number of results, the most important of which are: Based on the Porter factors to analyze the sector and build a competitive advantage, the researcher showed when applying the model that the natural cosmetics sector has an average attractiveness to invest in it, and that the Hashlamoun Cosmetics Company for the industrial environment in the sector has a medium appeal to continue in it, but after applying the forces and modern factors to the sector Natural cosmetics turned out to be of low attractiveness and also the Hashlamoun Company for Cosmetics for its industrial environment is of high attractiveness.
The Porter model assessment of the five powers of sector analysis with the researcher’s assessment is weak and not sufficient, because it is unable to give information and expected challenges to the market and the sector adequately and inappropriate for the current sectors and different markets for several reasons: the inconsistency of the conditions and assumptions that are required to apply the model to the sectors and modern markets, the sector The model was applied to in Palestine and it is one of the developing countries, which means the model is unable to deal with the analysis and understanding of the sectors and markets of developing countries. The organization under study is from the small organizations sector and the Porter model is not appropriate for this sector because it has structures organization and clear and depend on the manpower, expertise and skills while the model is based on clear organizational and divided structures is the basic value of the equipment, machinery and external resources, and the presence of factors, modern forces weighed heavily on the markets and sectors and their ability to build a competitive advantage, did not mention the five Porter powers model.
It became clear to the researcher that the company is using a differentiation strategy to build a competitive advantage for it, but there are better and more modern strategies that are more suitable for modern markets, and this strategy used has many flaws. After discussing the results, the study concluded with a set of recommendations, the most important of which are:
Establishing a committee representing companies in the natural cosmetics sector and caring for them, companies that want to invest in or are present in the sector to counter the intensity of competition by using information technology methods and taking advantage of globalization and the Internet to market and promote their products, also that Al-Hashlamoun Cosmetics Company adopts the new thought of total quality management, Reduce damage, arrange production activities and processes to save time and effort, and communicate between management and workers to solve problems, access the market quickly and on demand on time, and a hybrid modern strategy that integrates cost leadership with differentiation, and The companies use to analyze the market recent modern models for all factors and variables, and if Porter models are used to be just a simple look or a starting point and use other tools, also amend the Porter strategies and models to become appropriate for the modern economy and the variables and taking into account modern forces from the Internet and globalization and free trade, and adding factors On its models to accommodate the economy in developing countries and focus on the role and impact of government on sectors.
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