Estee Lauder Case

Topics: Revenue, Marketing, Strategic management Pages: 3 (449 words) Published: November 8, 2013
Estee Lauder

Introduction:

Estee Lauder, an American corporation based in New York, is one of the world’s largest manufacturer and marketer of skin products, make up, fragrance and hair products. It has 29 brands and sells products in 140 countries and employed 32,000 people World wide. Beauty, youth and forever being young is the themes for personal products industry. For financial year 2008 the net sales were USD $9.7 billion and the net earnings from continuing operations are USD $ 474 million.

I have performed SWOT, final SWOT analysis for Estee Lauder.

External Analysis:

Opportunities:

1.International expansion: Estee Lauder is known for quality and for its brand popularity. They have successfully entered into 140 countries. Further expanding to the emerging markets can gain and increase the market share and sales volume for Estee. 2.World wide increase in aging population will increase the over all dependence on the cosmetics. So there is an opportunity to increase the market share and sales volume. 3.Opportunities in other fashion items such as hand bags and jewelry which also has a huge demand and potential.

Threats:

1.Aggressive Competition: There is an aggressive competition from the other competitors such as Revlon, Avon, Arden etc. which target the same market and in the similar kind of product line. 2.Competitive pricing from similar products and substitutes is a major threat which leads to decrease in sale volumes.

Internal Analysis:

Strengths:

1.High reputation for quality, brand, creativity, and innovation in all the cosmetic and fashion products. 2.Owns 29 well known brands and market share in 140 countries. They have strong base which can give a strategic advantage for expansion. 3.Conquered e-business by introducing online shopping in 196 and this is the fastest growing channel for Estee Lauder. Their strong policies and transaction security has attracted customers towards them. 4.Great...
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