estee lauder strategic case study

Topics: Cosmetics, Company, Marketing Pages: 7 (781 words) Published: November 15, 2014
Brief Profile and History

Estee Lauder is a major American corporation based in New York City. Estée Lauder is one of the world’s leading a manufacturer and marketer of quality 1) skin care, 2) makeup, 3) fragrance and 4) hair care products. The Companies was established in 1946 and has been public since November 1995. Presently, Estée Lauder Companies has 29 brands, sells products in over 140 countries and territories. Estée Lauder sells its products mainly through upscale department stores, specialty retailers, upscale perfumeries and pharmacies. Estée Lauder was the first cosmetics company to offer free samples and gift-with- purchase and continues this strategy today. Estée Lauder Companies is managed primarily by Lauder family members and a majority of stock is owned by members of Lauder family which controls about70% of voting shares.

Vision Statement
“we touch and make you shine ”

 
Mission Statement
 
The employees of the Estée Lauder Companies are committed to working together with uncompromising ethics and integrity. They strive to always Being

responsible citizens in every community they serve.
continuously look for new and better ways to do things to constantly raise our standards. Providing consumers with innovative cosmetic products of the highest quality and safety standards. Delivering outstanding service by treating each individual as we ourselves would like to be treated. Building partnerships with our stakeholders based on fairness and trust. Pursuing profit-but never at the expense of quality, service or reputation Eliminate waste and reduce inefficiencies in order to provide maximum value to our customer  Enhance our reputation of image, style and prestige

Create an environment that fosters personal growth and well being Most of all, staying committed to working safely together with uncompromising ethics and integrity

Opportunities

 
International expansion. Estée Lauder has earned extensive experiences in new international market expansion which reach out to customers of all income ranges. As at today, the Companies successful enter to 140 countries, further expansion will gain and enhance the Companies’ market share and business volume. Regardless of European or Eastern countries, the trend is inevitable. Many skin care manufacturers have been aiming for this portion and market.. Global warming and environment pollution effects, lead to more demand onclinical and preventive cosmetics products, especially in growing countrieslike China and India.  The market of the cosmetics for men is constantly increase. The Companies has been stepped into men’s cosmetic market in 20 years back, the increasingtrend definitely an opportunities for the Companies to expand its marketshares and sales revenue. Constantly increasing of online purchase trendThis shopping channel is foreseen to increase doubledigit yearly with the more easy access and upgrading of connection facilities everywhere.  

Availability of other quality local and international cosmetic brands for acquisition. Opportunities in fashion related industry, Eg: handbags and jewelry which is another profitable business to do with women and brands. More high aims stores/counters distribution and exclusive air ports exist. E.g., South East Asia’s luxury goods shopping paradise. Constantly growing in global fashion and entertainment industry. Also, good co-operation experience and rapport with world fashion indicator.

Threats
1. Aggressive competition from the competitors who targeting the same market segments. For example, although its professional makeup brands such as M.A.C and Bobbi Brown face little competition due to the specialized clientele. 2. Changed of spending atmosphere and pattern of the luxury goods’. many of white collar or so called well paid office ladies/ executives have been retrenched or paid cut thus switched their preferential to middle or low cost products. 3. Competitive...
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