Swot Analysis Of Loreal

SWOT SWOT stands for strengths, weaknesses, opportunities and threats. SWOT analysis of L'Oreal can help us to identify the internal factors- strengths and weaknesses and external factors such as opportunities and threats. The results of the analysis can help the company to see the areas for development while improving its performance. Strengths:
Rich heritage
Leader in cosmetic industry
Focus on innovation, innovative technology ( more than 3,5% of its Revenues is spent on R&D)
Presence in more than 130 countries, which makes it global company
Consistent quality and safety which retains loyal customers
High environmental concern (Focus on Corporate Social Responsibility)
Online presence and continuous growth in on-line platform
Diversified

Seventh Amendment cosmetics directive finally approved by the European Parliament and the Council of the European Union, It is expected an immediate ban on animal testing products and a total ban on animal testing of cosmetics raw materials, no later than six years to implement the directive.
Strict control of chemical products
L'Oreal mission is making business operations legally secure
L'Oreal has to find a way to ensure that the legislation is adhered to without harming the company and inversely, to protect it by remaining in compliance with the law Economical:
L’Oreal’s main consumer-products categories are all highly sensitive to global economies of scale and scope.
Since 2004 L’Oreal’s revenue has increased by half and its profits have almost doubled net profits of 17.6% in 2013 alone
L'Oreal goal is to adapt to different economic environments, and it can be impacted by currency fluctuations in different economies

Socio-cultural:
L’Oreal is Recognized by Foundation for Social Change as a "Leader of

The industry has strong dominant companies in the market, such as Estee Lauder, Revlon, Procter & Gamble, Unilever and another small companies L'Oreal competes with. Certainly, increased competition may force L'Oreal to decrease their pricing strategies which can lead to reduced profit margins and as follows, the decrease of market share. Companies in global cosmetic industry are continuously competing for market share, they are trying to differentiate from the competitors by setting the competitive advantages. L'Oreal is a global, worldwide company and certainly there are many rivals in the industry. Nevertheless L'Oreal has a huge consumer market and big competitive advantage over its competitors, due to many factors,and in particular due to the high diversified portfolio of products, and their worldwide presence and coverage. L'Oreal implements global integration with local responsiveness. Company continues to focus on research and development, as well as on advertising and promotion in order to gain over