Case Study about Global Strategic Management of L’Oréal

Abstract

This paper attempts to analyze L’Oréal as a beauty leader and its strategies which made the company become and remain the largest cosmetics and beauty company. L’Oréal is a worldwide company and has large shares of market in the most of marketplaces where it invests, making use of powerful variety of marketing tools and strategies. Exploiting both traditional and innovative marketing techniques, L’Oréal aims to grown its customer base to two billion by 2020 while implementing CSR strategies, analyzing their business units by identifying high-growth prospects according to growth rate and market share and investigating the strategies that have been used to achieve it. The evolution of the L’Oréal journey throughout the years shows how the brand combination within a portfolio is a key factor for company growth and development which is a crucial phase to understand the company competitive advantage. With the combination of large amount in capital available and high technical capabilities, L’Oréal has access to resources to produce in a large scale while making use of its strong research and development department to bring up innovation. The corporate level strategies involve horizontal integration, vertical integration and strategic alliances to build a stronger image in different geographic markets. The importance of market analysis in all business areas, the corporate strategies and marketing challenges as they globalize, the importance of understanding the customer, proper use of resources and capabilities, customizing its products and business strategies as key points to strive and prosper are being discussed in the paper.