University:
California State University, Northridge
Course:
FIN 431 | Risk Management
Academic year:

2021
Views:

495

Pages:

2
Author:

rezancuk2j

Loreal and the globalization of American beauty SWOT ANALYSIS STRENGTHS 1. The primary strength of the Company is the continuing research and innovation in the interest of beauty which assures that the L’Oreal Cosmetics offers the best to their consumers. 2. L’Oreal Groups is the developed activities in the field of cosmetics as well as in the dermatological and pharmaceutical fields in order to put more concentration in their particular activities. 3. L’Oreal’s advertising strategy also plays a major part to its growth. Through adapting to the culture of their target market as the main tool of their advertisement, the Company brought L’Oreal products within reach of other women from different parts of the world. WEAKNESSES 1. The company has a decentralized organizational structure. 2. Due to the many subdivisions of the Company, there is also the difficulty in the control of L’Oreal. 3. The profit margin of L’Oreal is comparably low than that of the other smaller rivals. 4. Due to its worldwide marketing strategy, there are also dissimilarities brought about in the campaign of L’Oreal products as to what image they are to project. OPPORTUNITIES 1. The growing demand for beauty products gives L’Oreal the opportunity to focus in their field of specialization, particularly on hair styling and color, skincare, cosmetics and perfumeries. 2. The market is growing that ranges from the affluent, the aging and also the masses of the developed countries. 3. It has greater market share because of the numerous patents registered by the Company. This enables them to have the top of the line products only to their name. THREATS 1. Due to the ongoing addition to the field of cosmetics, there is still the danger that other brands could surpass the profit of L’Oreal. 2. The economic downturn that is quite evident in other countries. Such could thus hurt the possibility of higher profit for the company. 3. While the L’Oreal Group may be producing the best of its line, people may find that their products are not of their basic needs and would skip buying L’Oreal products.