L’Oreal: Global Brand, Local Knowledge
L’Oreal: Global Brand, Local Knowledge
1. Outline the various conflicting demands on L’Oreal in the international context and their relative importance. What tradeoffs do you see among them?
The conflicting demands are:
Global Integration
Local responsiveness
Leveraging knowledge (local to Global)
Global Integration:
L’Oreal is one of the world 's most progressive companies and it is being honored for creating a corporate culture that embraces and drives diversity throughout the company.
L’Oreal’s strength comes from the diversity of its teams, to be a global company, it’s needed first have to be global from within. So people from different cultures and origins are a real asset for the company. L’Oreal experience is that diverse teams are actually more creative and innovative.
The company is aware of the necessity of recognizing the diversity of its customers. L’Oreal does not try to export or impose a single view of beauty. On the contrary, all the brands must reach out to people of very different types around the world.
Local responsiveness:
One of the most conflicting demands that L 'Oreal is experiencing the different needs of customers according to the local needs, sometimes a country asks for a product that fits perfectly for them but not for the other country.
For a company that is dedicated to beauty care, it is essential to study the needs of the market and be able to adapt the business to them.
L 'Oreal has been able to adapt to the demands of different local markets and has become one of its competitive advantages by studying the needs and development of products specially designed for each market.
Leveraging knowledge:
L’Oreal leverage the valuable knowledge is obtained from the research made in 18 Investigation centers. L’Oreal has a deep understanding of how the group makes local country studies and has an international focus and a global vision.
From my point of view, this helps them to leverage the knowledge and adapt it
1. Outline the various conflicting demands on L’Oreal in the international context and their relative importance. What tradeoffs do you see among them?
The conflicting demands are:
Global Integration
Local responsiveness
Leveraging knowledge (local to Global)
Global Integration:
L’Oreal is one of the world 's most progressive companies and it is being honored for creating a corporate culture that embraces and drives diversity throughout the company.
L’Oreal’s strength comes from the diversity of its teams, to be a global company, it’s needed first have to be global from within. So people from different cultures and origins are a real asset for the company. L’Oreal experience is that diverse teams are actually more creative and innovative.
The company is aware of the necessity of recognizing the diversity of its customers. L’Oreal does not try to export or impose a single view of beauty. On the contrary, all the brands must reach out to people of very different types around the world.
Local responsiveness:
One of the most conflicting demands that L 'Oreal is experiencing the different needs of customers according to the local needs, sometimes a country asks for a product that fits perfectly for them but not for the other country.
For a company that is dedicated to beauty care, it is essential to study the needs of the market and be able to adapt the business to them.
L 'Oreal has been able to adapt to the demands of different local markets and has become one of its competitive advantages by studying the needs and development of products specially designed for each market.
Leveraging knowledge:
L’Oreal leverage the valuable knowledge is obtained from the research made in 18 Investigation centers. L’Oreal has a deep understanding of how the group makes local country studies and has an international focus and a global vision.
From my point of view, this helps them to leverage the knowledge and adapt it
References: Case: L’Oreal: Global Brand, Local Knowledge L’Oréal: www.loreal.com Managing Differences: The Central Challenge of Global Strategy, (Harvard Business Review – March 2007)