Strategic plan: "L´Oréal"

Résumé du document

L'OREAL, a world leader in cosmetics, started as a family business. It was founded in 1909, by the chemist Eugene Schueller, who manufactured and sold hair dye to hairdressers. The spirit and values attached to them are the basis of the group, and enable it to dominate the cosmetics market.

The L'Oreal group began by launching products in the hair coloring segment. The product was their first real innovation, as well as the first major success of what would become the leading company in the cosmetics market.

In 1912, the group began exporting internationally, selling its products in France, Holland, Austria and Italy. In the last century, the L'Oreal group has continued to maintain its policy of "innovation and communication." To ensure constant innovation, the Research Department has been developed, and has continued to grow.
The group started with 3 researchers in 1920, and now has a team of more than 2823 people. Now, a company on the stock exchange, it has more than 400 affiliates and fifty plants in the world. In its new mission, L'ORÉAL is interested in the whole cosmetics sector and beauty in general. The group is particularly interested in dermatological and pharmaceutical activities, in which it is involved through joint venture capital and participation.

Extraits

[...] In fact, the differentiation is mainly due to performance, technology and innovation. The product becomes more sophisticated and thus the cost is higher than a standard product, but it will be compensated by a higher price in the market. That differentiation can also be based on the image of the product or the brand. The symbolic aspect becomes essential and this is an important strategic resource because nobody can copy it. It spreads some values and builds itself on the long term with constant and coherent investments. [...]

[...] Strategic plan: 'L´Oreal' Table of contents INTRODUCTION 4 PROBLEM AND FOCUS 5 I. PESTEL Framework 6 A. POLITICAL Regulators Politicians 6 B. ECONOMIC World trend French Trends 6 C. SOCIAL Cultural Change Demographics 7 D. TECHNOLOGICAL 8 E. ENVIRONMENTAL Cost implication Public opinion 8 F. LEGAL European Legislation French directives 9 II. Presentation of the strengths / weaknesses of the company 10 A. [...]

[...] In the last century, the L'Oreal group has continued to maintain its policy of "innovation and communication." To ensure constant innovation, the Research Department has been developed, and has continued to grow. The group started with 3 researchers in 1920, and now has a team of more than 2823 people. Now, a company on the stock exchange, it has more than 400 affiliates and fifty plants in the world. In its new mission, L'ORÉAL is interested in the whole cosmetics sector and beauty in general. [...]

[...] Since the beginning, L'Oréal has given priority to internal growth and to innovation. The market is developing quite quickly, but the group wants to grow faster than it does, in order to gain a lot of benefits. On the other hand, with an important budget in research, the brands can take a lot of initiatives with a high level of success Marketing factor This strategy goes with a very important marketing policy which builds the main asset of L'Oréal. In a relatively crowded market, L'Oréal has always known how to differentiate itself from other companies. [...]

[...] OECD is the Organization for Economic Co-operation and Development. Basically OECD represents the more advanced economies.) The most profitable sector in the whole world has been the Service Sector since French Trends France's economy combines extensive private enterprise (nearly 2.5 million companies registered) with substantial (though declining) government intervention (see dirigisme). The government retains considerable influence over key segments of infrastructure sectors, with majority ownership of railway, electricity, aircraft, and telecommunication firms. It has been gradually relaxing its control over these sectors since the early 1990s. [...]