Revlon, Inc. ¬¬ 2004
INTRODUCTION
Revlon Inc. was founded in 1932 by Charles Revson, Joseph Revson and Charles Lachmann. The Company began with only one product – nail enamel. Revlon Inc. later introduced other numerous products such as fragrances, manicure and pedicure instruments, and other cosmetic products. Within six years, Revlon Inc. turned into a multimillion dollar organization, becoming one of the most recognized cosmetics names in the world. Revlon Inc. is now one of the world’s leaders in cosmetics, skin care, fragrance and personal care. Their vision is to “provide glamour, excitement and innovation through quality products at affordable prices.â€
In 1985, Ronald Perelman gained control of the company in a hostile takeover and now owns approximately 83 percent of Revlon. Perelman helped return the company to its roots (of cosmetics) and sold off the healthcare products. He refocused the company to become an internationally known manufacturer and seller of cosmetics and fragrances. Since then, Revlon’s debt began to grow and the Company has been creating ways to keep from defaulting on its huge debt that continues to weigh the company down. A lot of Revlon’s operating losses have been incurred due to money spent on repaying debt and restructuring costs.
CRITICAL ISSUES
Although Revlon Inc. is one of the world’s largest cosmetic companies, it is currently not profitable. The company has been in a serious financial struggle, accumulating nearly $2 billion in debt. Revlon Inc.’s sales have not improved and the company is now at risk of filing for bankruptcy. If Revlon Inc. does not make adjustments and formulate new competitive strategies, this multimillion dollar company may shortly seize to exist.
For any industry, it is imperative to cater to current trends or to anticipate future trends. If a company does not react to these changes, it risks losing its market share to its competitors. Presently, major changes in the...