Elodie Louder Swot Analysis
BENZARTI M’hamed
LE Sophie
LECROT Jessica
SAINTE-MARIE Elodie
ORGANIZATION
DEVELOPMENT
ISEG
BS5
MBA
Program
Estée
Lauder
BENZARTI M’hamed
LE Sophie
LECROT Jessica
SAINTE-MARIE Elodie
2
INTRODUCTION
Estée Lauder is an American beauty brand founded in 1946 by Esther Mentzer. Through her uncle who was a chemist, she learnt how to make her own beauty creams.
In 1973, she resigned her post as a president but stayed on as the firm’s chairman of the board. Fabrizio Freda is now the current CEO of the company.
The Estée Lauder’s strategy is based on “bringing the best to everyone they touch”. The firm pioneers the “gift with purchase” concept. This concept relies on the fact that if consumers buy several products, the firm would offer them a sample
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They also saw a record year-end stock price and market capitalization of over $28 billion.
Estée Lauder’s company at-a-glance (fiscal 2014)
The company develop locally relevant products and services and utilizing insights and research and development technology from research centers around the world to innovates.
The key of the success of Estée Lauder is the skin care innovation. Brands such as Estée
Lauder and Clinique enhanced their existing skin care franchises with advanced reformulations. They develop and launch products in areas where they previously didn’t sell products, in order to reached new consumers, for example, La Mer’s The Treatment Lotion
BENZARTI M’hamed
LE Sophie
LECROT Jessica
SAINTE-MARIE Elodie
4
entering the watery lotion subcategory. Makeup market it’s one of its largest opportunities, and the company continues to lead in this market. Its M·A·C brand had a strong performance,
Bobbi Brown and Smashbox also makeup this year as both brands expanded globally
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They expect to continue over the long-term as China’s GDP continues to increase
.
BENZARTI M’hamed
LE Sophie
LECROT Jessica
SAINTE-MARIE Elodie
5
MAKE
A
CHANGE
a) Diagnostic of the need for change
Overall the company is performing well but Estée Lauder has seen continued softness in certain Southern European countries and South Korea.
Indeed, the lower net sales in South Korea primarily reflected a challenging economic environment and continued competitive pressures facing prestige beauty in the country.
As we mentioned earlier, our currently focus is on the Chinese market. However, we need to pay attention on Southern European countries and South Korea. To do so, we decided to implement different actions that will continue to support our current strategy. The company wishes to remain the number one prestige beauty company worldwide.
b) The appropriate intervention
We want to continue to expand our geographic presence, develop our brand portfolio, diversify our channels and build new capabilities for success.
In order to maintain our success, we decided to continue making strategic investments in research and development and technology to bring the most creative and innovative
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