Swot Analysis Of L Oreal

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Competitor Analysis: L’Oreal has many stiff competitors not only in the cosmetic range but also FMCGs. The switching cots in cosmetics is very less so consumers can switch brands easily and become loyal to other companies. Domestic Competition: The domestic market sees many private labels and specialized firms which bring out new products regularly. To keep an edge over them L’Oreal must keep innovating and introducing new products to attract customers. International Competitors: The diversified portfolios of FMCG companies make them immune to global downturn and give them scope of innovation in various markets. L’Oreal gains competitive advantage due to its niche product portfolio with a global presence. The major FMCG brands P&G and HUL have a head start over L’Oreal in India by having implemented an India specific strategy and having been around longer than L’Oreal in India. L’Oreal has oriented its strategy towards emerging markets and is investing across the product value chain, in research and innovation, manufacturing, distribution and marketing. L’Oreal has also concentrated on promoting local innovation to meet the needs of country specific customers. L’Oreal is also strengthening its supply chain (by improving fill rates and lowering inventory levels amongst its distributors) and increasing its advertisement budget. Collaborator Analysis: L’Oreal sources its products from many suppliers. Due to this it’s bargaining power with them is low. It tries to develop

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