Strategy Analysis Of L'Oreal

5 Pages 1202 Words

L’OREAL



INTRODUCTION

Strategy analysis focuses on the long-term objective generating alternative strategies, and selecting strategies to pursue. The firm’s present strategies, objectives and mission, couple with the external and internal audit information, provide a basis for generating and evaluating feasible alternative strategies (David 200).

L’Oreal has numerous competitors. To have an advantage on competition, L’Oreal has to apply some strategies that include internal audit information and external opportunities that will make the company stronger. They will also prevent competitors to have an advantage over L’Oreal.
This report will be based upon the effectiveness of current strategies of L’Oreal, a real global leader in every segment of the industry.


CURRENT STRATEGIES

L’Oreal encounters threats and opportunities and they have weaknesses and strengths. It is known as the TOWS matrix. It is an important matching tool that helps managers develop four types of strategies: SO Strategies, WO Strategies, ST Strategies and WT Strategies. The external opportunities and threats were identified earlier (see part 1) by developing the “External Factor Evaluation Matrix” and “Competitive Profile Matrix” is important for the current strategies development. L’Oreal internal strengths and weaknesses will be discussed further in this report.


SO Strategies

SO Strategies uses the internal strengths to take advantage of external opportunities of a firm. L’Oreal has always taken these advantages with their new innovations and global expansion. The company is reaching out to more people across a bigger range of income and cultures than just about any other beauty-products company in the world. L’Oreal strategy positions it beautifully to profit even further when the middle class begins to grow stronger in emerging markets. That makes L’Oreal competitors more hustling to catch up.
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