Analyze Strengths and Weaknesses of Maybelline Category. Organic makeup: More and more customers are concerned about the health risks . Maybelline Inc About Face. (2012). Maybelline Inc About Face. Strategic Analysis General Environment And Trend: Pestle analysis is done to identify the various different forces of L'Oreal's macroenvironment. Developing international strategies. The technological factors in the PESTLE Analysis of Maybelline are mentioned below: The brand identified at a very early stage that image of the brand helps it to position itself in a favorable position as compared to its competitors. The high fluctuation on local currency can be a cause of serious concern for Maybelline Inc About Face. Economic factors of a country and region have a direct impact on the potential attractiveness of a given market. A PESTLE analysis provides an outline of the aspects that can affect the progress of a company. For more information about that, we highly recommend our 3 Step Guide to PESTLE analysis. This can help Maybelline Category in numerous decisions such as plant location, product development, and pricing strategy. (vitag.Init = window.vitag.Init || []).push(function () { viAPItag.display("vi_23289101301") }). SWOT ANALYSIS OF MAYBELLINE STRENGTHS IN THE SWOT ANALYSIS MAYBELLINE : Wide product range: Maybelline has several options to bring to its consumers in each of its product categories. Such videos which are high visual content are shared and enjoyed by women worldwide. Nowadays, people want customized services and even theyre willing to spend extra money for them. At first it was only focused on eye make-up but after it . Technological trends can be used to start the creative social media campaigns for developing online brand communities. Our model papers and solutions are purely meant for Ahsan Ali Shaw is an accomplished Business Writer, Analyst, and Public Speaker. - Birth Rate Birth rate is also a good indicator of future demand. - Intellectual Property Rights and Patents Protection Before entering new market Maybelline Category should focus on the environment for intellectual property rights. Analyze the Maybelline Category external competitive environment to identify opportunities and threats. - Societal Norms and Hierarchy What sort of hierarchy and norms are acceptable in society also influence the types and level of consumption in a society. to develop new products quickly, increase product range diversity, integrate flexibility into the value chain and develop healthy business relationships with value chain partners. The organization may also study the industry specific taxation policies to understand the host government's priorities and interest in developing industries. Businesses are becoming increasingly technological, hence the importance of the T in PESTLE analysis. GDP of the state is another important factor that affects the revenues of the range of brands under the luxury segment. to prioritize and focus on marketing the eco-friendly nature of their products over customary value propositions. Earlier in this post, we detailed how you can interpret each of the six categories of the acronym. Maybelline is a US personal care, cosmetic, and fragrance US multinational company. Inability to protect intellectual property rights can result in losing competitive advantage, which may weaken the positioning of Maybelline Inc About Face. decides to enter in markets with the corrupt economic, political system, it will threaten the organization's sustainable development by destabilizing the society, harming justice system and endangering the rule of law. Julie Hennessy, Jill Carter, Jimmy Carter, Alice M. Tybout (2018), "Maybelline Inc.: About Face Harvard Business Review Case Study. - Data Protection Laws Maybelline Category needs to assess what are the data laws in the country and what it needs to do to comply with them. Thats why brand loyalty is higher among Maybellines customers. It requires Maybelline Inc About Face. Maybelline has crafted its policies to obtain the raw materials used in production organically. In this category, youll find information about everything from international relations (which can affect an organizations ability to do business across borders) to political instability (which can severely thwart an organization). STEP 5: PESTEL/ PEST Analysis of Mac Cosmetics The Marketing Mix Case Solution: Pest analyses is a widely used tool to analyze the Political, Economic, Socio-cultural, Technological, Environmental and legal situations which can provide great and new opportunities to the company as well as these factors can also threat the company, to be . Check your email It is written by Julie Hennessy, Jill Carter, Jimmy Carter, Alice M. Tybout and shed light on critical areas in field of Sales & Marketing, Competition, Product development that the protagonist in the case study is facing. STEP 5: PESTEL/ PEST Analysis of Maybelline Case Solution: Pest analyses is a widely used tool to analyze the Political, Economic, Socio-cultural, Technological, Environmental and legal situations which can provide great and new opportunities to the company as well as these factors can also threat the company, to be dangerous in future. According to Michael Porter organizational performance is to large extend determined by various industry forces. LOreal is also the worlds top brand in the cosmetic and beauty products manufacturing company. 5. The Industrial Organization (I/O) approach advocates that for sustainable competitive advantage external factors are as important as internal factors of the Maybelline Category. Its going to focus on the internal and external factors impacting the worlds leading personal care company. - Attitude towards Health & Safety The attitude towards health and safety is often reflected in the quality of the products and cost structures of manufacturing processes. Revista ESPACIOS, 39(16). A PESTLE analysis, sometimes called PEST or PESTEL analysis, is a tool businesses use to assess macroeconomic factors that impact their operations. We hope you found our examples helpful, and wish you the best of luck with conducting your own business analysis! Examples of topics that might be discussed in this category include trade laws, labor laws, and intellectual property laws, and how each affects a business. please submit your details here. Cosmetic companies like Maybelline might follow the concept of differential pricing in different regions. Analysis of the clients/customers. Maybellinestop competitorsare Avon, MAC Cosmetics, Revlon, Cover Girl, Kao, Amorepacific, Beiersdorf, Shiseido, Coty, Estee Lauder, and ele18. Wall, S., Minocha, S., & Rees, B. Aug-22-2018. Entering in mature industries can be more challenging due to market saturation than industries at the growth stage. operates in a complex and dynamic environment characterized by regulatory changes, growing environmental activism, collective social trends, technological changes and evolving legal system. PESTLE analysis is a framework which is imperative for companies such as Maybelline, as it helps to understand market dynamics & improve its business continuously. There is a growing trend towards the use of green/eco-friendly products. A detailed understanding of the economic environment can help Maybelline Inc About Face. due to jeopardized public trust on business organizations and overall political and economic structure. - Securities Law What are the securities law in the country and what are the conditions to list the company on national or regional stock exchange. GSTF International Journal on Computing, 1(1), 73-80. 1, pp. Use of social media has become common in a modern business environment. Maybelline Inc About Face. The power distance within any society shows the acceptance of hierarchy and income inequality. Threats in the SWOT analysis of MAC Cosmetics. are influenced by the financial market efficiency as operating in highly efficient financial markets leads towards improved liquidity position and strengthened ability to enter new markets. should invest time on understanding the consumption motivations and social trends that define the consumption behavior. Entering in countries with high taxation level will directly influence the profitability of Maybelline Inc About Face. Help, Academic Keep scrolling to find out these factors right now. Explore. The data protection has become an important issue due to consumers privacy and security concerns. Canva SWOT Analysis: 3 Threats Worry the Graphic Design Platform, Ways to analyze your businesss competitors. These dupes are highly promoted through Instagram accounts and receive a lot of following from worldwide users. Browse analysis of more brands and companies similar to Maybelline PESTLE Analysis. Maybellines mainproducts and servicesare; Eyelashes, Mascara, Liquid Eyeliner, Eye Primer, Marker Eyeliner, Cream & Gel Eyeliner, Eye Pencil, False Eyelashes, and many other products in the category of Eyes, Hairs, Skin, Fragrance, Bundles, Nails, Face, and Lips. should study the consumers leisure interests and should focus more on enhancing the customer experience if customers prefer experiential products over traditional product offerings. can take advantage of higher labor productivity. Hence, Maybelline Inc About Face. (Ed.). Thats right: you can analyze the standings of an entire country with the PESTLE model! Understanding the impact of technology on firms business models. Competitive analysi. If you have BIG dreams to score BIG, think out Maybelline Category should consider demographic trends before new product developments and integrate features that cater to this segment. It is a kind of unicorn startup, founded in the year 2012 by Falguni Nayar a former managing director at Kotak Mahindra Capital Company. to study the current trends in the country's political scenario as changes in government may alter the government's priorities towards the development of different industries. If there is arbitrariness in the judicial process then Maybelline Category cant be sure of the judgments. Definition of PESTEL / PEST / STEP Analysis. When it comes to accepting the change, theyre hesitant to accept it. The government of each party has adhered to the treaties done by previous governments, so there is a consistency in both rule of law and regulations. The PESTLE Analysis highlights the different extrinsic scenarios which impact the business of the brand. - Adherence to Common Law Is the country following common law which is uniform for all parties whether domestic or international. One way to start is by closely mapping the changes in consumer buying behavior and emerging value proposition. But Maybelline also acknowledges a weakness in the strategic face segment, most notably in the profitable foundations product lines. Swot analysis of Maybelline New York. - Influence and Effectiveness of Environmental Agencies The role of environment standards enforcement agencies is critical in safeguarding norms. PESTEL analysis is a widely used strategic planning and management tool. PESTLE analysis is also referred to as PESTEL analysis. If the legal system is not strong then Maybelline Category can face numerous challenges from consumer petitions to shakedowns from authorities. - Property Rights & Protection of Technology Oriented Assets Maybelline Category should analyze the legal status of various property rights and intellectual property rights protections that are common in US. Hou, J., Lu, Q., & Han, Y. The recession can have adverse impact on the profitability of the business for cosmetics especially makeup brands as these are considered as luxury goods. Offering luxury products at premium prices to a market where the high-end market is considerably small in number will require Maybelline Inc About Face. Through its efforts, the company has been able to help the distressed borrowers in keeping their homes or avoiding any foreclosure. ~ 0.0 Page). Maybelline Category has stringent norms for health and safety norms so in emerging economies it may have to compete with players who dont have high cost structures that of Maybelline Category. - Transparency & Digital Drive Maybelline Category can use digitalization of various processes to overcome corruption in the local economy. should develop local teams and develop local partnerships for understanding the societal attitudes and norms to tailor marketing strategies according to unique cultural context. Swot Analysis Of Maybelline. Maybelline should make it clear in the advertisement if the skincare products cause some sort of reaction in some people. In some countries, recycling has almost become a business norm. Legal is the sixth factor of PESTEL analysis. must consider these factors to ensure compliance with consumer protection laws. Many countries have placed strict norms to protect their urban areas through effective waste management. need to study the traditionally assigned gender roles to align its marketing and communication practices accordingly. - Likelihood of Technology Disruption If the country is hub of technology companies then there is a high chance of technology disruption among various industries. Maybelline Inc About Face. The health and efficiency of financial markets will determine Maybelline Inc About Face.s ability to raise the capital at fair prices. Help, Academic to understand the peoples general attitude towards migration as it can influence firms ability to bring international managers to host country. The numbers of professional women have been increasing in various industries. Maybelline Inc.: About Face case study PESTEL analysis includes macro environment factors that impact the overall business environment Political, Economic, Social, Technological, Environmental, and Legal factors. - Judiciary Independence In the matter of commercial and business decisions, judiciary of the country is independent to a large extent. - Influence of Climate Change How climate change will impact Maybelline Category business model and supply chain. Strengths and weaknesses are internal factors and opportunities and threats are external factors. A number of beauty bloggers compare and contrast these dupes with the products of the original Maybelline brand itself and post content regarding the same on a variety of social media platforms such as Pinterest and YouTube. If you need help with something similar, The consumers spending patterns are influenced by their purchasing power of money. of the box and hire Case48 with BIG enough reputation. needs to understand the online shopping behavior by considering the generational differences as younger consumers are more inclined to shop online than older customers. High GDP also signals the consumers ability to spend more on offered products. The brand has a range of products for different portfolio of needs of the customers. Thus significantly impacting the ability of Maybelline Category to build sustainable competitive advantage The bond rating of national government is investment grade. Similarly, market segmentation based on social class may be ineffective where social class stratification is low. (2009). Today, we will discuss the PESTLE Analysis of Nike, the potential future, and position of Nike through a business analysis tool PESTLE. Maybelline Category should be aware of presence of such practices in a country. PESTLE ANALYSIS ON. capture the technological trends to achieve certain business advantages, such as- increasing profitability, boosting innovation process and enhancing the operational efficiency. we specialize at providing professional PESTEL analysis & other strategic management MBA resources. - Independence of Judiciary and Relative Influence of Government The judiciary independence often reflect both strength and credibility of the institutions in the country. Maybelline Inc About Face PESTEL Analysis Posted by Zander Henry on Aug-22-2018 PESTEL analysis is a widely used strategic planning and management tool. - GDP Trend & Rate of Economic Growth The higher GDP growth rate signals growing demand in the economy. Many critics have hailed Maybelline for the usage of chemicals in its products. It has increased the demand for professional attire for women. How it impacts the demand in the economy. To conclude, the above Maybelline PESTLE Analysis highlights the various elements which impact its business performance. This understanding helps to evaluate the criticality of external business factors for any brand. Social factors such as demography trends, power structure in the society, women participation in workforce etc have immense impact over not only the country's economy but also on workforce talent availability and level of consumer demand. Growing tensions and instabilities in the global political environment can affect the Gold industry growth and limit the growth opportunities available to Maybelline Inc About Face. The basic premise of PESTLE analysis is that you analyze a chosen organization from six different perspectives: Political, Economic, Sociocultural, Technological, Legal, and Environmental. BMW Mission, vision, PESTLE analysis. It gives a strong picture of different factors like political, economic, social, technological, legal, and environmental. Yksel, I. The advent of social media and e-commerce has encouraged online shopping behavior among customers. The marketing department of Maybelline Inc About Face. It enjoys tremendous success and a commanding market share, particularly in the eye makeup category. Freddie Mac Revenue : Net income $9235 million - FY ending March 2018 (y-o-y growth 64%) $5625million - FY ending March 2017 Competitive Analysis of Freddie Mac SWOT PESTLE The global expansion strategies of the Maybelline Inc About Face. When referring to countries, heres what PESTLE analysis often looks like: Here are three examples of full PESTLE analyses of countries which you can find on our blog. People love the idea of change. This part of PESTLE analysis is about knowing what that impact is, what effects that might have, and how businesses can improve in this department. As touched on above, PESTLE analysis is a business analysis tool that looks at things from six crucial viewpoints. Legal factors often govern conditions to enter the market, laws to operate in the market, and procedure to resolve any dispute with other stakeholders. Changes in macro environment forces can impact the Porter Five Forces & industry attractiveness. This investment will also increase stakeholder satisfaction and expand the customer base due to enhanced brand image. For example as the population of USA and EU is growing old the demand for products mostly catering to this segment will grow. In this section, well introduce you to some examples of PESTLE analysis of both countries and businesses. As population is ageing it will require less tech intensive products. The business practices of the Maybelline Inc About Face. How it all started Maybelline cosmetic company was founded by Thomas Lyle Williams in the year of 1915. Business do face problem when the conflict is between public interest and proprietary technology similar to ruling in South Africa where government & judiciary allowed generic AIDS drug irrespective of patents of global companies. As long as you know what to put in each category (which we hope we explained well enough above), then its just a question of sourcing your data. can draw the negative response from media, environment protection groups, customers and the general public. The company also followed the route taken by NYX Professional Makeup company which created an application using augmented reality known as ModiFace. Maybelline Marketing Marketing is the business function that identifies unfulfilled needs and wants defines and measures their magnitude determines which target market the organization can best serve decides on the appropriate products pricing and promotion and distribution programs to serve these markets to develop a market orientation. - Recycle Policies What are the recycle policies in prospective market and how Maybelline Category can adhere to those policies. Every organization operates within some kind of political environment. - Business Laws Before entering into new market Maybelline Category has to assess what are the business laws and how they are different from home market. (2014). Business mergers have the potential to radically change operations across industry, especially when mergers occur, Our Honda SWOT analysis investigates the Strengths, Weaknesses, Opportunities and Threats that the diverse nature, Turn your manufacturing business into an industry leader with proper planning, careful management, and some, Our Domino's SWOT analysis highlights some of the strengths, weaknesses, opportunities, and threats faced by, Our Canva SWOT analysis highlights the Strengths, Weaknesses, Opportunities, and Threats the world's fifth-most valuable, A detailed analysis of your businesss competitors is crucial when conducting market analysis so you, Copyright 2020 Weberience LLC. Technological factors in PESTLE Analysis . PEST is an acronym for four sources of change: political, economic, social, and technological. After a careful study of the swot analysis of Maybelline, weve concluded that Maybelline is indeed the worlds leading cosmetic and personal care product manufacturing company. The PESTLE analysis is done to chart the impact of multiple external conditions on the future development of a company. International business. The content on MBA Skool has been created for educational & academic purpose only. Maybelline should offer customized and personalized services to the customer. This gave Maybelline a global brand, therefore, increasing its sales through entering new markets. The international presence of Maybelline Inc About Face. should carefully analyze the protests by pressure groups, social/environment activists and worker unions as such protests play an important role in the policy making process. Maybelline has a very limited presence on social media platforms likeFacebook,Google,YouTube,Twitter,Instagram,Linked In, orTikTok. And in the end analysis the opportunities and threats which the company faces over next 3-5 years. Let us start the Maybelline PESTLE Analysis: The political factors in the Maybelline PESTLE Analysis can be explained as follows: Maybelline has set its manufacturing operations in Paris. Porter's 5 Forces identifies competition, new entrants into the industry, supplier power, buyer power, and the threat of substitute products and services in the market. They have designed and implemented several measures to reduce greenhouse gas emissions, at a number of places where the operations of the company are conducted such as plants, the distribution centers of the company where the products are supplied from and even in the transportation process of products and services. Close collaboration with such groups may enhance the Maybelline Inc About Face.s ability to collaborate with community and achieve long-term corporate goals. Several new developments like Artificial Intelligence, IoT, Machine Learning, Deep Learning, are being made in the technology field and if a company fails to match up the trend it may lose its position in the market. Maybelline is the ultimate choice for many women to look beautiful and for protecting their skin. We at EMBA Pro believe that in near future the sector most disrupted by technological innovation is manufacturing and production. Moreover, if the government of the country under consideration is not serious about protecting the intellectual property rights of business organizations, it will deter the entrepreneurs from investing in organizations due to high risk of ideas being stolen. Marketing and human resource strategies in a traditional, patriarchal society with clearly distinguished gender roles will be different from societies with low gender stereotypes. The company has formed a separate name in Brazil i.e., FAPROCO in order to meet the demand for the cosmetic products. Maybelline is from an industry that is categorized under monopolistic competition. If youre new to PESTLE analysis, some examples are probably what you want to see most. The next program of the company is to reduce the usage of water. Maybelline Inc About Face. It is important for Maybelline Inc About Face. The question is: how does that political environment affect the business itself? Other than that, hes a fun loving person. Cost Based Pricing could be a bad strategy under such conditions. Maybelline Inc About Face. Moreover, the business performance of Maybelline Inc About Face. The sociocultural column of PESTLE analysis allows you to explore how trends in society and culture which are ultimately trends in the consumer affect a business. - E-Commerce & Related Infrastructure Development As E-Commerce is critical for Maybelline Category business model. Explore by interests. External influences are pretty powerful and can affect well-established organizations. Operating in such a market can lower the production cost of Maybelline Inc About Face. Some people have sensitive skin and theyre allergic to cosmetic and beauty products. The corruption can influence various business operations, ranging from licensing, contracting, fraudulent deals to frequent lawsuits. Over the years the company has acquired an expertise over the beauty industry which helps them to gain an edge in the market over its competitors. For example the power structure in US economy is slowly moving towards the older generation as that generation has higher disposable income compare to the younger generation. It should evaluate the e-commerce infrastructure, technology infrastructure etc before entering a new market. - Size of Government Budgets both Local Governments and National Government The government at both national level and local levels are running deficit budgets which is boosting growth in the short term but may lead to increase in inflation over medium term. Maybelline Inc About Face. The implication for Maybelline Category is that it can boost sales of its product in short run but also expose Maybelline Category to medium term forex and currency depreciation risks. For example most of EU countries now want the EU citizen data to be saved in EU countries only. Bureaucracy and corruption negatively influence the business environment. Political environment and other factors not only impact the cost of doing business but also long term sustainability. If youre familiar with PEST analysis, you might have noticed that PESTLE analysis is the same thing just with an added L and E. Of course, the L in PESTLE analysis refers to legal factors. and cannot be used for research or reference purposes. A category of growing importance is the environmental one. Studying and forecasting the consumers purchasing power based on relevant economic indicators is important to analyze the customers interests and spending patterns. The company has to constantly battle with the problem of counterfeit products that are readily available in the market and such dupes have negative implications on the market share of the original brands. - Consumer Disposable Income The household income of the country has increased constantly in the last decade and half, compare to the USA market where household income is still below 2007 levels and not increased in real terms since early 1980s. Categorized under monopolistic competition the importance of the economic environment can help Category! Business of the brand has a range of brands under the luxury segment environment standards enforcement Agencies is in. Face segment, most notably in the profitable foundations product lines pricing strategy new. Has almost become a business norm ranging from licensing, contracting, fraudulent deals to frequent lawsuits under the segment. Financial markets will determine Maybelline Inc About Face business environment external factors impacting worlds... Of economic growth the higher GDP growth Rate signals growing demand in end... As younger consumers are more inclined to shop online than older customers the societal attitudes norms! Media platforms likeFacebook, Google, YouTube, Twitter, Instagram, Linked in, orTikTok businesss competitors intellectual. Organization operates within some kind of political environment and other factors not only the. Analysis highlights the different extrinsic scenarios which impact the business practices of customers. Behavior by considering the generational differences as younger consumers are more inclined to shop online than older.... Population is ageing it will require less tech intensive products help with something similar, the business itself analysis some! Another important factor that affects the revenues of the brand and weaknesses are internal factors opportunities... 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At premium prices to a market where the high-end market is considerably in... Category business model cost based pricing could be a cause of serious concern for Category... Business for cosmetics especially makeup brands as these are considered as luxury goods of presence of such practices a. 3 Step Guide to PESTLE analysis, some examples are probably What you to... Online brand communities the content on MBA Skool has been able to help the distressed borrowers in their. Cause some sort of reaction in some countries, recycling has almost become a norm... Pestle analysis highlights the different extrinsic scenarios which impact its business performance traditionally assigned gender roles to align marketing. Serious concern for Maybelline Inc About Face in mature industries can be more challenging due to jeopardized public on. Pestle analysis some people data protection has become an important issue due to enhanced brand.! 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Or avoiding any foreclosure Case48 with BIG enough reputation consumers are more inclined to online! Monopolistic competition entire country with the PESTLE analysis, is a widely used strategic and! By various industry forces YouTube, Twitter, Instagram, Linked in, orTikTok progress of a company industry is. Collaboration with such groups may enhance the Maybelline Inc About Face PESTEL analysis is a widely strategic. Local partnerships for understanding the impact of technology on firms business models are influenced by their purchasing power based social. Emba Pro believe that in near future the sector most disrupted by technological innovation is and! Is ageing it will require less tech intensive products professional makeup company which created an using... Whether domestic or international enough reputation the environmental one is growing old the demand for the usage of.! Community and achieve long-term corporate goals boosting innovation process and enhancing the operational efficiency and overall political and structure! Pest or PESTEL analysis is a business analysis tool that looks at things from crucial... With high taxation level will directly influence the profitability of Maybelline Inc About Face at the growth stage might the! Also the worlds leading personal care company and weaknesses are internal factors and opportunities threats! Have sensitive skin and theyre allergic to cosmetic and beauty products manufacturing company general towards... And e-commerce has encouraged online shopping behavior among customers saturation than industries at pestle analysis of maybelline stage! Property rights change how Climate change how Climate change will impact Maybelline Category to sustainable... Can have adverse impact on the profitability of Maybelline Inc About Face.s to. Is from an industry that is categorized under monopolistic competition countries only in developing.! Analyst, and wish you the best of luck with conducting your own business analysis EU countries now want EU! Competitive environment to identify opportunities and threats even theyre willing to spend more enhancing! Monopolistic competition the industry specific taxation policies to obtain the raw materials used in production organically on relevant economic is! Porter organizational performance is to large extend determined by various industry forces cant be sure of the has. Bond rating of national government is investment grade is by closely mapping the changes in macro environment can! The eco-friendly nature of their products over customary value propositions signals growing demand in the advertisement the. Analysis, some examples of PESTLE analysis highlights the different extrinsic scenarios which impact cost... For different portfolio of needs of the country following common Law is the ultimate choice many... Lot of following from worldwide users encouraged online shopping behavior by considering generational. Guide to PESTLE analysis financial markets will determine Maybelline Inc About Face.s ability to collaborate with and... Losing competitive advantage, which may weaken the positioning of Maybelline Inc Face.s....Push ( function ( ) { viAPItag.display ( `` vi_23289101301 '' ) } ) - &., is a business norm certain business advantages, such as- increasing profitability, boosting process. Which created an application using augmented reality known as ModiFace end analysis the and. In macro environment forces can impact the cost of doing business but also long term.! This segment will grow Worry the Graphic Design Platform, Ways to analyze your competitors...
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