L'oreal SWOT analysis

• Strengths of L’Oréal
  • The primary strength of the Company is the continuing research and innovation in the interest of beauty which assures that L’Oréal Cosmetics offers the best to their consumers.
  • Dedication to their continuous research makes them the leader in the growing cosmetics industry despite the competition in the market.
  • The strength of the L’Oréal Groups is the developed activities in the field of cosmetics as well as in the dermatological and pharmaceutical fields to put more concentration in their particular activities.
  • Advertising strategy also plays a major part in its growth. Through adapting to the culture of their target market as the main tool of their advertisement; the Company brought L’Oréal products within reach of other women from different parts of the world.
• Weaknesses of L’Oréal
  • Decentralized organizational structure.
  • Difficulty in the control of L’Oréal which slows down the production of the Company.
  • Low profit margin compared to smaller rivals.
  • Difficulty in finding out which division is accountable for the possible pitfalls of the Company.
  • Coordination and control of activities and the image in the worldwide market.
• Opportunities for L’Oréal
  • Growing demand for beauty products.
  • Being the leading cosmetic brand gives them the edge for their well-known image.
  • Growing market that ranges from the affluent, the aging, and also the masses of the developed countries.
  • Greater market share due to numerous patents registered by the Company.
• Threats for L’Oréal
  • Growing competition within the field of cosmetic brands.
  • Economic downturn in other countries.
  • Difficulty reaching out even to the average people from underdeveloped countries.
  • Spending habits of the consumer and economic crunch in most countries.

• Strengths:
  • Innovation, continuous R &D
  • Diversified brand portfolio and range of products
  • Strong integrated marketing communication
  • Widespread distribution, accessibility
• Weaknesses:
  • Severe competition
  • Heavy investments in R &D
  • Too many subdivisions
• Opportunities:
  • Industry expansion
  • Creation of new products
  • Natural, organic production
  • Online shopping
• Threats:
  • Constantly changing environment in the beauty industry
  • Global economic crisis
  • New competitors
• Target Audience:
  • Carpe Diem
  • Lifestyle and Values:
    • People who belong to the Carpe Diem target segment are very active, approachable, friendly, and warm. They prefer living their lives actively. In general, they enjoy life, love spending time with their friends, and have fun. At the same time, they realize the importance of working on themselves, creating a good career, being financially stable and independent in any sense.
  • Shopping Preferences:
    • Carpe Diems love following trends in fashion, beauty, music, etc. and give huge significance to their appearance and the way they look. They pay great attention to the quality of the products they are buying and using and think that it is better to have a few high-quality products than many low-quality ones.
  • Interesting facts about the segment:
    • They like playing cards, and challenging games like poker is an ideal choice for them.
    • When reading a book, they give preference to biographies and literary books.
    • If they own a car, they love it and like to drive fast and energetic.
    • Surprisingly, they don’t like watching TV, and if they do, then it is something mainstream like movies, sports, music, etc.
    • The Internet is an inseparable part of their lives. They use it all the time both for entertainment and for connecting with people. They may even use the internet to find a date. Also, they like to play games on this platform and join different competitions.
    • This segment is not hating the radio. It likes it and listens to it if there something that truly interests and engages.
• 16 Personalities (why do you need

• Strengths
  • Good Research & Innovation
    • L’Oréal spends huge amounts of money on the research and development of products in order to ensure that they are safe to use and are high-quality products.
  • Globally Expanded
    • As of 2019, the company has expanded to 150 nations with its main focus on the economies of Western Europe, North America and the New Markets.
  • Diversity in Products
    • L’Oréal has expanded to the skincare, fragrances and even hygiene industry.
  • High-End Celebrity Endorsements
    • L’Oréal has invested in using high-end celebrities to market the brand over the years.
• Weaknesses
  • Many Subdivisions
    • Handling such a large operation base is always a hassle for companies as it leads to communication gaps that compromise the quality of the brand’s products.
  • Saturated Market
    • The cosmetics and skincare market is one of the most competitive and intense markets globally.
  • High Expenditures
    • The company invested 8.65billion Euros in the year 2020 on advertising.
• Opportunities
  • Manufacturing Organic Products
    • Organic beauty products have high demand globally.
  • Collaborating with skin-care outlets
    • The brand equity and reputation of L’Oréal and The Body Shop will go hand in hand to provide both brands with increased sales.
• Threats
  • Ever Changing Demand for Products
    • The demand for every product varies across different time periods.
  • Competitive Market
    • L’Oréal receives a great deal of competition from Yatsen Holding, Estee Lauder, Avon Products, Revlon, Coty, CHANEL, etc.

• Strengths of L’Oreal
  • Reduced CO2 emissions of its plants and distribution centers by 91%, while production volume increased by 45%
  • Innovation of Sustainable Product Optimization Tool to assess and improve the environmental and social performance of products across all brands
  • 97% of new or renovated products had an improved environmental and social profile
  • Helped 100,905 people from disadvantaged communities find employment through its solidarity purchasing and inclusion programs
  • Achieved an “A” score in all three CDP rankings
• Weaknesses of L’Oreal
  • No weaknesses explicitly stated in the source
• Opportunities of L’Oreal
  • Allocating 100 million euros to impact investing dedicated to the regeneration of ecosystems and the development of the circular economy
  • Allocating 50 million euros to a charitable endowment fund to support highly vulnerable women
• Threats of L’Oreal
  • No threats explicitly stated in the source

• L’Oréal has announced an investment in a venture by Geno, a biotech company, to create sustainable alternatives to key ingredients in beauty products.
  • The investment is meant to be a positive move to create more sustainable products.
  • This move has been met with both hope and skepticism from Reddit users.
  • L’Oreal is owned by Nestlé, but Nestlé only has a minority share, so they don’t have any control.
  • Reddit users have noted that Nestlé still get money from any and every L’Oreal purchase.
  • Reddit users have also noted that there are multiple sustainable make-up companies within the L’Oreal price range.

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• Strengths:
  • Largest Beauty/ Cosmetics company
  • Continuous R & D
  • Fantastic product and brand portfolio
  • High quality of products
  • Strong integrated marketing communications
  • Really good stars in the brand portfolio
  • Widespread Distribution
  • Natural and Organic in nature
• Weaknesses:
  • Too many sub divisions
  • Hair care is a degrowing segment
  • Profit margins are lower
• Opportunities:
  • Market potential
  • Product mix expansion
  • Demand for organic cosmetics
  • Revival of Body shop
• Threats:
  • Dynamic nature of cosmetics industry
  • Cash crunch

• Strengths
  • Ongoing research and innovation in the interest of beauty
  • Dedication to research makes them the leader in the growing cosmetics industry
  • Developed activities in the field of cosmetics and dermatological and pharmaceutical fields
  • Five divisions of the company to ensure quality
  • Adapting to the culture of their target market as the main tool of their advertisement
• Weaknesses
  • Decentralized organizational structure leading to difficulty in control and production
  • Low profit margin compared to smaller rivals
  • Difficulty in coordinating and controlling activities and image in the worldwide market
• Opportunities
  • Growing demand for beauty products
  • Focus in their field of specialization
  • Growing market from affluent, aging, and masses of developed countries
  • Greater market share due to numerous patents
• Threats
  • Growing competition within the field of cosmetics
  • Economic downturn
  • Difficulty reaching out even to average people from underdeveloped countries
  • Spending habits of consumers and economic crunch

• SWOT Analysis
  • A thought process that documents internal strengths and weaknesses against external opportunities and threats
  • Helps make setting goals easier
  • Should consider the external opportunities and threats that are outside of your control
• Traditional Project Management Tools
  • Risk and Opportunity Analysis
  • Gantt Charts
  • Requirements Definition and Analysis
  • Ishikawa Diagrams
  • Responsibility Matrices
• Porter’s 5 Forces
  • Marketing Ps
  • PESTEL
• Conjoined Triangles of Success
  • Compromise is the shared hypotenuse

• Strengths:
  • A powerful portfolio of brands
  • High quality
  • International access
  • Moving into organic
  • Endless research
• Weaknesses:
  • Growing saturation
  • Shrinking profit margins
  • Slow divisions
• Opportunities:
  • Industry expansions
  • Create new products
  • More organic
• Threats:
  • Quick changes
  • Tricky cash flow

• History of L’oreal Group
  • Founded in 1909 by Eugène Schueller
  • 1957 to 1983: formative years of “Le Grand L’Oréal” and strategic brand acquisitions
  • 1986: strategic product launches and significant investments made in research
  • 2006: Jean-Paul Agon becomes CEO and commits to the path of universalization and diversity
• Strengths of L’oreal Group
  • Pioneering research and innovation in the service of beauty
  • High profile brand image
  • Significant investments in research
  • Worldwide presence of their brands
  • Ethical and socially responsible initiatives
• Weaknesses of L’oreal Group
  • Dependence on third-party distributors
  • Lack of control over global economic and political environment
• Opportunities for L’oreal Group
  • Digital transformation
  • Sustainability initiatives
  • Expansion in emerging markets
• Threats to L’oreal Group
  • Intense competition
  • Regulatory and legal changes
  • Fluctuations in currency exchange rates
  • Consumer preferences and trends

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