The SWOT analysis is a strategic planning method which takes into account both internal and external factors. The internal factors are the strengths and weaknesses internal to the organisation, while the external factors are the opportunities and threats external to the organisation. * Strengths: characteristics of the organisation that give it an advantage on competitors. * Weaknesses: characteristics that put the organisation on a disadvantage relative to competitors. * Opportunities: external chances to make greater sales or profits in the environment. * Threats: external elements in the environment that could be problematic for the organisation. STRENGHTS * Strong Brand Image * Diversified Brand Portfolio * Innovative Products * Economies of scale| WICKNESSES * Bad reputation among environmentalists and animal rights activists * Profit margin * Decentralised organisational structure| OPPORTUNITIES * New potential markets * Strategic Acquisitions * Rise of Organic and Natural Cosmetics| THREATS * Change in Consumer Preferences * Intensive Competitive Environment * Global Economic Crisis| Strengths
* Strong Brand Image
L’oreal is leader in the cosmetic market, and its brand image is well recognised and perceived from customers through all the world. as an high value brand. The company’ slogan “because you’re worth it”, despite some little changes (see the company history paragraph), is immediately recognized and linked to the brand;it is fully implemented in the image the company wants to communicate to its consumers: we sell high quality products, created to satisfy any consumer in its uniqueness, and you deserve to buy our products because you're worth it. * Diversified Brand Portfolio
The company’s brand portfolio is diversified by price and image (cultural or lifestyle); we can see it as a pyramid: * at the bottom of the pyramid there are the consumer product, which target the mass...