L'Oreal and the Cosmetic Industry

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Executive summary

The following report is doing about the Cosmetics industry, using a particular focus on one of its company : L’Oreal. This report will define the industry and its scope in a first time. Then, the report will determine the key strategic issues and the critical success factors facing the cosmetics industry and L’Oreal in the next five years. Next, the report will identify the organisation likely to be successfull or not, paying a particular attention to the competitive position of L’Oreal. Finally, the report will identify the strategic options available in the cosmetics industry and determine which options are most appropriate to L’Oreal to ensure its success in the next five years.

Contents Pages

Executive summary 2 Industry definition and scope 4 Key strategic issues in the cosmetics industry 6 Critical success factors for L’Oreal facing the next five years 8 Core competencies 9 Corporate advantage 11 References 13

Appendices

External environment:

Appendix 1: Industry definition 15
Appendix 2: EPISTLE analysis 19
Appendix 3: The competitive analysis: Porter five forces 22
Appendix 4: Strategic group analysis 25 Appendix 5: Competitors analysis 28 Appendix 6: Market/Customer analysis 30

Internal environment:

Appendix 7: Ressource analysis 35
Appendix 8: The value chain analysis 39
Appendix 9: Critical success factors 40
Appendix 10: Core competencies 42
Appendix 11: Comparative analysis 43
Appendix 12: Balance of ressources 44
Appendix 13: SWOT analysis 47
Appendix 14: The strategy clock 49
Appendix 15: Strategic options matrix 50
Appendix 16: Strategic logic 51
Appendix 17: The development strategies 55 Industry definition and scope

Since it was developed nearly a century ago, the cosmetics industry hasn’t stoped its evolution. In 2000, the cosmetics industry represented a $166.2 billion market worldwide. As a result of research and innovation, this market was projected to reach $198.2 billion in the year 2003. The world market in cosmetics and fragrances is estimated to increase by 4 to 7% per year since 1995. The cosmetics industry...
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