Loreal Swot

3.) Abstract

The purpose of this cases study was to analyse the main problem of L’Oreal which is moral issue, aiming to recommend suitable ways to mitigate the effect of the moral issue. A SWOT analysis was conducted to find the strengths, weakness, opportunities and threats of the performance of L’Oreal. Results indicated that L’Oreal has a strong brand with a strong capability of research and development, having a diversified geographic presence. Yet, the company performances badly in Western Europe which is also a cause of slow revenue growth. Moreover, its moral issue on animal testing is also a problem affecting the company’s profitability. It is recommended the company should differentiation its products compared not only with the competitors such as P&G and Estee Lauder but also the company’s own brands.

4.) Introduction

This report is aiming to give the best solution to L’Oreal of its biggest threat with a SWOT analysis. The reason of choosing L’Oreal is because it’s debatably moral issue on animal testing cause lots of echo in the society, having a lot of debates and disputes on this particular issue with L’Oreal no intention to change. L’Oreal is the world’s largest cosmetics and beauty company which has developed different activities in the field of cosmetics, concentrating on hair color, skin care, skin care, sun protection, make up, perfumes and hair care. This successful French beauty giant was first founded by Eugene Schueller, a young French chemist in 1901. After nearly more than 100 years with a series of acquisition, innovation products as well as formulae, L’Oreal is currently acting as a monopoly in the beauty industry, primarily operating in Europe and North America. In this report, Moral issue will be the issue that particularly concentrated as it is interesting to show how a business moral issue can greatly affect the company’s performance, profitability as well as reputation.

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