Estee Lauder Case Analysis by Fred David 12th Edition
Case Background Estée Lauder Companies was a technologically advanced, innovative company which gained a worldwide reputation for elegance, luxury and superior quality. Estée Lauder Companies, Inc. which founded in 1946 is a U.S manufacturer and marketer of skin care, cosmetics, hair-care and fragrance products. The company’s headquarters are in Manhattan, New York City. The company launched with four products under its flagship brand but over the decades, the business has grown alongside its reputation for elegance and quality. One of the platforms that Estée Lauder discovered was in 1968, with the launch of Clinique Laboratories Inc. and hence become the first company with a line of products that were allergy tested and 100 percent fragrance free. Estée Lauder acquired more brand licensing of names such as Tommy Hilfiger, MAC, Bobbi Brown, LaMer, Kiton fragrances, Donna Karan, and Aveda. And, in 1983 their product were introduced in the Soviet Union.
In 1998, Estée Lauder began selling a variety of products over the Internet and was one of the first major cosmetics firms to offer online shopping. A new division called ELC Online was created to manage all online strategies and activities for all of its brands. During this same time frame other acquisitions included Jo Malone, Stila Cosmetics, and Gloss.com. New York-based Bumble and Bumble LLC was acquired. In 2003, Darphin and Rodan + Fields were acquired and a license with Michael Kors was signed shortly afterward. In 2004, the company’s teen-oriented Jane business was sold and Estée Lauder launched Beauty, Flirt, and Good Skin through its BeautyBank division, followed by Grassroots in 2005 and Daisy Fuentes in 2006.
The year 2006 also saw license agreements with Sean John, Missoni, and Donald Trump, and the Stila brand was sold. Today Estée Lauder Companies has 26 brands, sells products in over 130 countries and territories, and employs over 22,000 people worldwide. Estée Lauder has
In 1998, Estée Lauder began selling a variety of products over the Internet and was one of the first major cosmetics firms to offer online shopping. A new division called ELC Online was created to manage all online strategies and activities for all of its brands. During this same time frame other acquisitions included Jo Malone, Stila Cosmetics, and Gloss.com. New York-based Bumble and Bumble LLC was acquired. In 2003, Darphin and Rodan + Fields were acquired and a license with Michael Kors was signed shortly afterward. In 2004, the company’s teen-oriented Jane business was sold and Estée Lauder launched Beauty, Flirt, and Good Skin through its BeautyBank division, followed by Grassroots in 2005 and Daisy Fuentes in 2006.
The year 2006 also saw license agreements with Sean John, Missoni, and Donald Trump, and the Stila brand was sold. Today Estée Lauder Companies has 26 brands, sells products in over 130 countries and territories, and employs over 22,000 people worldwide. Estée Lauder has