- The products can be applied without any tools, do not require touch-ups, and come in wear-and-tear resistant packaging, catering to busy Millennials.
- Appeals to a certain segment of cosmetics customers - makeup minimalists.

Financial:
Sustained Financial Growth
-  "100% online sales growth since launching in 2016"

Technological:
Strong social media presence
- Unique and innovative products and line made it a "trend" on social media platforms such as YouTube and Instagram.
- Holographic stick got a huge bump in exposure and sales when YouTuber Jeffree Star featured it.
-  The beauty industry is number one when it comes to influencer marketing, according to a study.

Strong reliance on retailers
- Even though Milk Makeup sells its products through its online website in the US, it doesn't have any physical stores and relies on Sephora & Urban Outfitters as its official retailer.
- Its website (milkmakeup.com) does not ship to the U.K., so U.K. customers have to purchase their products through Cult Beauty (cultbeauty.co.uk).

Limited demographic target
- Milk Makeup's main demographic target is Generation Z 18-24 consumers, which means that it could be alienating a huge segment of older consumers.
- Because of its social-media centric marketing, it's limiting its exposure to older women who might most likely shop in department stores.
- This leaves a segment of the market untapped, with these women familiarising itself with competitor brands such as Charlotte Tilbury which frequents upscale department stores.


Controversy: Using drug culture to sell products
- Estée Laundry reposted a screenshot of Milk's dime baggies (symbolic for drugs like cocaine) on their Instagram, telling their followers, “You know what needs to drop? Using drugs to glamorize beauty products.” They subsequently called out other brands for #WeedWashing in the hashtags.
- It’s further problematic for Milk to use this type of imagery and to hype up their KUSH product as numerous people, specifically indigenous, black, or other racialized people, have been incarcerated for those exact baggies.

Counterfeits Goods Markets
- The huge influx of counterfeit products could affect the company's business operations.
- Penetration of counterfeit merchandise could lower the company's sales and affect its profit margins.
- Will affect brand reputation due to low quality.

Foreign Exchange Risks
As Milk Makeup is based in the U.S. and is selling to customers based in Canada and the U.K., it is exposed to foreign exchange rates fluctuation. 
- Need to adjust the price of products so customers won't be put off by it but also make sure the company can cover their cost despite currency fluctuation. 

- Entry barriers are lowering.
- Growing independent brands.
-  Growth of cruelty-free market (emerging markets) --> increasing market sector that has specific wants and needs that aren't fulfilled by existing brands.
Natural, clean, and sustainable beauty can get them (consumers) to switch.

- Establishing a network of branches as a barrier of entry is lowered by the Internet. Enabled firms to compete with lower set up costs. e.g. selling cosmetics on their website, using social media to promote their products, using social media influencers instead of paying for celebrities. 

- If Milk Studios decide to switch suppliers, there would be a lot of options.

- Switching cost is not high as there are many brands within the same mid-range cosmetics section which Milk Studios is so those brands would sell at a similar price range. e.g. Glossier.
- The consumer has high bargaining leverage. 

Demographics will extend as new stores in department shops target older/ more mature women who are more likely to frequent. May also attract women of higher income group with new luxury age-prevention brand in department store helping it establish a similar brand image with more upscale cosmetics brands.

Psychographics remains unchanged as Milk Makeup still has to adhere to original branding which is fuss-free, on-the-go makeup for women with a busy schedule. Ethical consciousness aspect of business also remains unchanged.