Strategy Analysis and Choice

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4. STRATEGY ANALYSIS AND CHOICE ---Estee Lauder

1. SWOT Matrix

A SWOT analysis is important as a clear basis is provided to examine the performance of a business. It is also very important for the products a company offers, as it is essential in the branding and marketing of the company products. This model helps in the understanding of the ‘firm and its surroundings’.

SWOT analysis for Estee Lauder from four aspects, such as Strengths, Weaknesses, Opportunities, Threats, they belong to Internal and External. At the internal of Estee Lauder also have strong brand name, research and development focus, strong distribution network, robust revenue and profit growth sales, weak liquidity position, customer concentration and weak performance in a few markets. At the external of Estee Lauder also have demographic trends in the United States, cosmetics markets in emerging nations, growing riches- rich getting wealthier, counterfeit products, intense competition and increasing regulations.

Strengths
The brand name, ‘’Estee Lauder’’ itself is strength. The name is linked to quality and luxury. The company is also a global licensee for other big brands like; Tommy Hilfiger, Donna Karen, etc. Estee Lauder leads in each market segment in the industry as it develops new products, redesigns existing ones and identifies and considers consumer preferences.

It has a large network of retail. This therefore increases the market penetration opportunities and creates closeness to target customers. It has a strong management strategic perspective, and is also having a great growth. It also has various innovations such as; offering shopping via the internet (it was the first major cosmetic firm to have offered shopping via the internet.)

Weaknesses
The company bargaining power could be lowered by it concentrating on a single biggest client. They also have a poor cost structure in some areas, . The company could be exposed to...
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