Estee Lauder, based in New York City, is a manufacturer of cosmetic products that include skincare, makeup, fragrances, and hair products. STRENGTHSIndustry Recognition: According to NPD Clinique, Estée Lauder, and MAC are the best-selling skin-care and up-scale cosmetic. Estée Lauders Company Profile – SWOT Analysis: Estée Lauder Cos has seen above industry level growth, helped by the solid performance of its newer.
|Published (Last):||9 September 2007|
|PDF File Size:||6.92 Mb|
|ePub File Size:||18.36 Mb|
|Price:||Free* [*Free Regsitration Required]|
For example changing environmental regulations can be both a threat to company it can also be an opportunity in a sense that it will enable the company to be on a analtsis playing field or at advantage to competitors if it able to develop the products faster than the competitors. As circumstances, capabilities, threats, and strategies change, the dynamics of a competitive environment may not be revealed in a single matrix.
Along with these elements a mission statement should decide if the company will be customer-oriented or product-oriented. Estee Lauder has role models and leaders in identifying what the consumers need and prefer, then developing products accordingly.
ESTEE LAUDER SWOT ANALYSIS PDF
The bargaining power of buyers is high if the buyers analysix powerful enough to demand lower prices and high quality of products and services Barney, An industry has high competitive rivalry has a large number of competitors, slow growth, high fixed costs and low product differentiation Porter, Liability laws in different countries are different and Estee Lauder may be exposed to various liability claims given change in policies in those markets.
The business is also affected by the political stability of these countries, where sometimes there are restrictions on the products that can be carried in flight. In every country globally that Anlysis Lauder Company sells its products to, it must get licensing for the products. Swot Analysis of Estee Lauder.
I think, you will find the correct decision. It represent a great opportunity for Estee Lauder to drive home its advantage in new technology and gain market share in the new product category.
To remain in the strong competitive position and the rapid market growth position, market development, penetration, product development and diversification as well as integration are viable strategies.
They are the innovative and leading brands. The proposed strategies for dog are usually divestiture and liquidation since they are not bringing much to the organization. Estee Lauder has no vision statement. On the other hand, with low switching costs, customers can easily get products and services from competition hence increasing the bargaining power of customers.
Barriers to entry lower the threat of entry and makes the industry more attractive Barney, Porter, Competitive Strategy New York: This is a highly competitive industry and therefore tough for new entrants to get in. This lack of choice can give a new competitor a foothold in the market.
Since Estee Lauder operates internationally, they must consider the government requirements in each country and the level of government involvement in the business. To be the global leader in delivering the promise to keep our every customer forever young. It also solves the long list problem where organizations ends up making a long list but none of the factors deemed too critical.
Co-operation and integration of countries and their relationships affect the business, for Example, Brexit is a consideration that Estee Lauder considers how it is going to affect the business. Though the industry is fast growing and high product differentiation, the industry is still competitive due to the large number of competitors involved, and the demand for cosmetic products involved.
To remain competitive, the company has to be innovative to remain preferable to the consumer by beating competition and ensuring that customers do not rush to the substitutes. According to Porter,an industry is whereby a number of organizations offering similar products are competing for the same markets. The makeup division looks very promising in growth, and has a large market share already, and could be the future cash cow.
As identified in the opportunities, there is potential in expanding into global markets and it is through market development that this can be achieved.
Government green drive also opens an opportunity for procurement of Estee Lauder products by the state as well as federal government contractors.
Threats Estee Lauder Facing – External Strategic Factors Growing strengths of local distributors also presents a threat in some markets as the competition is paying higher margins to the local distributors.
Investors in the beauty industry are expected to hold back until the stability of doing business in the EU is determined Micallef, Products The Estee Lauder companies Inc.
New customers from online channel — Over the past few years the company has invested vast sum of money into the online platform. Product differentiation in this industry is high, Estee Lauder products such as MAC are highly differentiated and it would take years for a new entrant to get to its level.
Estee Lauder Swot
This is one of the major limitations of SWOT analysis. Estee Lauder management structure is under reorganization after the death of lahder, Ms. Along with these elements a mission statement should decide if the company will be customer-oriented or product-oriented.