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L’Oreal SWOT & PESTLE Analysis

ID : 5286653| Feb 2019| 14 pages

COMPANY PROFILE -L'Oréal

Business Sector :FMCG, Personal Care

Operating Geography :Europe, France, Global

About L'Oréal :

L'Oréal, founded in 1909, is a French cosmetics company, with a varied portfolio, catering to different segments of the market. The Company is headquartered in Clichy, Hauts-de-Seine with a registered office in Paris and has over 82,881 employees.

L'Oréal Revenue :

€ 26.02 billion – FY ending December 2017

Competitive Analysis of L'Oréal

SWOT
PESTLE
The SWOT analysis for L’Oreal is presented below:
Strengths
Weaknesses
1. Strong research & development
2. Universalisation – The Development Strategy
3. Quality and safety
4. Serves diverse markets & is a market leader
1. Multiple acquisitions
2. Dependence on supplier
Opportunities
Threats
1. New markets in Africa and Middle East
2. Travel retail
3. Products for fast growing BRIC country markets
1. Competition from both ends
2. Emergence of new business models
3. Recessionary trends and restrained consumer spending
4. Seasonal business
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Detailed SWOT Analysis of L'Oréal

Strength

1. Strong Research & Development: L’Oreal has around four thousand researchers and a budget equivalent to 3.1% of sales for research and development. The R&D expenses for 2015 were €794 million and they have constantly risen over the last two years. The cosmetics industry faces a lot of competition and L’Oreal focuses on success and growth through innovation. The Company has also made advances in cellular engineering and micro fluids which will enable it to use this in its products in future.

2. Universalisation - The Development Strategy: The Universalisation strategy of The Company focuses on globalization that respects differences. Through this strategy The Company can modify their offerings to suit the consumer’s demands in various parts of the world. They study the specifics of consumer’s requirements and adapt their products to the lifestyles of different consumers. The Company has research centres in the United States, Japan, China, Brazil and India. The data from these areas enable The Company to develop products as per the consumer aspirations.

3. Quality and Safety: The cosmetics industry has to comply with safety requirements and legislation. The Worldwide Safety Evaluation organisation evaluates the safety of raw materials and finished products from the industry. L’Oreal monitors the adverse effects that may arise once the product is on the market through its “cosmeto-vigilance network”. This network compiles, validates and analyses any adverse effects related to use of a product based on rigorous, proven methodologies, allowing the appropriate corrective measures to be taken where necessary.

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Weakness

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Opportunity

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Threat

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Check out analysis of other relevant companies

TABLE OF CONTENTS
DELIVERY AND FORMAT
WHY CHOOSE US?
References used in L'Oréal Analysis Report
1. L’Oreal Annual Report 2015 http://quote.morningstar.com/stock-filing/Annual-Report/2015/12/31/t.aspx?t=:LRLCY&ft=&d=0a0a68197bba3775f72ea267eb0025ab

2. L’Oreal news http://www.loreal.com/news

3. Forbes http://www.forbes.com/sites/greatspeculations/2016/01/08/loreals-professional-segment-might-be-further-strengthened-by-its-acquisition-of-raylon/#7125dec17133

4. Economic Times http://economictimes.indiatimes.com/industry/cons-products/fmcg/loreal-to-launch-new-hair-care-range/articleshow/52765027.cms

5. Deloitte 2015 Consumer Products Industry Outlook http://www2.deloitte.com/us/en/pages/consumer-business/articles/2015-consumer-products-outlook.html

Copyrights and Disclaimer

L’Oreal SWOT and PESTLE analysis has been conducted by Merlyn Pereira and reviewed by senior analysts from Barakaat Consulting.

Copyright of L’Oreal SWOT and PESTLE Analysis is the property of Barakaat Consulting. Please refer to the Terms and Conditions and Disclaimer for usage guidelines.

L’Oreal SWOT & PESTLE Analysis
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