L'Oreal Company Analysis

L'Oreal Company Analysis

Executive Summary

L'Oreal came into existence with an introduction of an innovative hair-color formula by one French chemist named Eugene Schueller. It is recently headquartered in Paris. L'Oreal Group has employees of around more than 68 900 situated in 66 countries. Its mission is to provide best of cosmetics innovation to both men and women. L'Oreal focuses on higher long term sustainability through effective strategies and they insure integrity in their business, responsibility and respect for people and environment. The L'Oreal Group is well-recognized for their continuous innovation and differentiation in order to gain competitive advantage over their competitors and increase the quality of their products and services. In respect to L'Oreal differentiation strategy is essential as innovation can enable them to make beauty accessible to all. L'Oreal has strong research and development department, in terms of R&D around 3 to 5 percent is devoted to innovation. L'Oreal is known to have strong and sustainable relationship with its suppliers and partners based on mutual benefits, trust and high standards.

This company can have great impact on our country if project of developing industry in our country is assigned to them. Major advantage of assigning project to this company is that it has strong recruitment and human resource development strategy which definitely brings job to majority of the unskilled labor in their factory production.

Company Description

L'Oreal came into existence with an introduction of an innovative hair-color formula by one French chemist named Eugene Schueller. This new formula was named as “Aureole”. It is recently headquartered in Paris. It is regarded to be global market leader in the cosmetics industry with consolidated sales of €20.3 billion in 2011.

L'Oreal Group has employees of around more than 68 900 situated in 66 countries. It is widely spread and with wide range of its products including hair care, skin care, sun protection and makeup, it covers all marketing segments and sales channels such as hair salons, perfumeries, retail stores, mail order, grocery stores and drugstore chains.

Its mission is to provide best of cosmetics innovation to both men and women. It also maintains a clear vision for corporate social responsibility and sustainable growth. It is solely devoted over one business that is beauty. Company offers various products through brands such as L'Oreal, Maybelline, Shu Uemura, Helena Rubinstein, L'Oreal Professionnel, Redken, Kerastase, Matrix and Mizani.

Company's International Strategy

L'Oreal focuses on higher long term sustainability through effective strategies and they insure integrity in their business, responsibility and respect for people and environment. They also have established system for ensuring sustainability through establishing short term, medium term and long term targets. Michael Porter represented three generic strategies: cost leadership, differentiation and focus. In respect to L'Oreal differentiation strategy is essential as innovation can enable them to make beauty accessible to all. L'Oreal has strong research and development department, in terms of R&D around 3 to 5 percent is devoted to innovation.

Porter's five forces

There are too many players in cosmetics industry and huge ...