L Oreal Case Study

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L’Oreal business got four important factors. The first one is universal; L’Oreal organization operating model and sales promotion are support universalization. While the organization not only keeping the global brand across the world but also L’Oreal are able to improve local economic and development. The second one is innovation, which is key development of organization, the organization itself to develop innovate. The third one is nimble; obviously, beauty is fast changed business in the industry. L’Oreal always find new chance in different field; such as markets and e-business. The last one is entrepreneurial; the unique aspect of L’Oreal is each business has independent sales distribution; business model and profitability logic. (Who we …show more content…

L’Oreal has been increasing and getting market share even though financial crisis happened in the Europe, L’Oreal competitors far away behind the L’Oreal. However, the great success in the world is by L’Oreal team strongly dedicated in home culture. (Hong and Doz, 2013) During the fierce competition, the most important of L’Oreal organization competitive advantage is support by professional with multicultural background in local country. L’Oreal business transformed from French beauty products to a global beauty products leader. Multicultural executives not only from French, but also from different countries, all other executives from home country as well as home executives deeply understand what exactly culture in home …show more content…

(l’oreal, 2014) All these factors are challenge for L’Oreal when L’Oreal entered a new market. It is important to know about people living in Asia, whitening beauty products is dominating in the market, on the contrary, Europe and North America is a very small market on the whitening products. L’Oreal have to take right acquisition decision in Asia market. In Asia, Shu Uemura is leading the make up industry. This brand is very famous for excellent design of beauty products. And then L’Oreal entered a new market it should be understand what the Asia people demands about beauty products. Acquiring Shu Uemura is a good opportunity to let the L’Oreal expand market share. And it is easily to know the home culture. In fact, Shu Uemura has a similar organizational culture with L’Oreal，both of them have talents and creativity employees to support them to create professional beauty

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