According to the Yearbook of Chemical Industry Statistics of Japan's Ministry of Economy, Trade and Industry, the total sales of domestic cosmetics market in 2008 was approximately 1,507. 1 billion yen, slightly less than that of 2007. In Japan's mature cosmetics market, however, the sales of anti-aging skin care products has been growing every year. The reasons are the arrival of an aging society and females' increasing emphasis on their appearances. There are over 1,200 cosmetics manufacturers in Japan. The distribution of these companies according to their sizes appears to be M-shaped. The top five¡XSHISEIDO, KAO, Kanebo, Kose, and P&G Japan, have been in heated competition for years, but it does not stop new entrants from joining the battlefield. In the face of fierce competition among the cash-rich giants and the threats of aggressive new entrants, the smaller-scaled companies that lie in between are facing daunting challenges. This study intends to show how such medium-sized companies might come up with a competitive strategy to ensure their survival and profitability. Saishunkan Co. Ltd. is one of those medium-sized cosmetics manufacturers. Saishunkan has modest capital amount of 100 million yen, yet it is able achieve annual sales of over 20 billion yen. The company has unique ways of marketing and sales, clearly targeted customers, products with special ingredients, and a sound market segmentation strategy. This thesis intends to examine, through the case study of Saishunkan, how a smaller-scaled company might compete and survive in a theater filled with cash-rich big companies who enjoy the economy of scale.