Strategy Analysis and Choice Essay

July 27, 2017 Construction

A SWOT analysis is of import as a clear footing is provided to analyze the public presentation of a concern. It is besides really of import for the merchandises a company offers. as it is indispensable in the stigmatization and selling of the company merchandises. This theoretical account helps in the apprehension of the ‘firm and its surroundings’ .

SWOT analysis for Estee Lauder from four facets. such as Strengths. Weaknesses. Opportunities. Threats. they belong to Internal and External. At the internal of Estee Lauder besides have strong trade name name. research and development focal point. strong distribution web. robust gross and net income growing gross revenues. weak liquidness place. client concentration and weak public presentation in a few markets. At the external of Estee Lauder besides have demographic tendencies in the United States. cosmetics markets in emerging states. turning riches- rich acquiring wealthier. forgery merchandises. intense competition and increasing ordinances.

Strengths The trade name name. ‘’Estee Lauder’’ itself is strength. The name is linked to quality and luxury. The company is besides a planetary licensee for other large trade names like ; Tommy Hilfiger. Donna Karen. etc. Estee Lauder leads in each market section in the industry as it develops new merchandises. redesigns bing 1s and identifies and considers consumer penchants.

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It has a big web of retail. This therefore increases the market incursion chances and creates intimacy to aim clients. It has a strong direction strategic position. and is besides holding a great growing. It besides has assorted inventions such as ; offering shopping via the cyberspace ( it was the first major decorative house to hold offered shopping via the internet. )

Weaknesses The company bargaining power could be lowered by it concentrating on a individual biggest client. They besides have a hapless cost construction in some countries. . The company could be exposed to the debt market due to low liquidness degrees. and this could therefore impact the company growing. It is the Family members that have most of the power over the company. The company’s organizational construction is non easy distinguished. In America. there are peculiarly lower gross revenues in the aroma class.

Opportunities Estee Lauder marks aged people and hence do merchandises to accommodate these people. Its grosss could be boosted by holding a strong and great presence in its sections. therefore besides increasing growing. The cosmetics markets are making good in emerging markets like India and China. as there are many beauty competitions that take topographic point. This cosmetics market is turning due to younger and middle aged adult females that are being more manner witting. Estee Lauder is besides good positioned in these emerging markets. There is besides a demand in the luxury goods. More money is spent on these goods. Therefore. the demands of these affluent people are besides taken into consideration. and merchandises made to run into their demands and wants.

Menaces Many bogus merchandises are being sold. therefore impacting Estee Lauders gross revenues. This can take to the company losing its exclusivity of the trade name. This could therefore harm the image of the company. Customers may besides be dissatisfied with these merchandises as the bogus merchandise may harm them. therefore the company would lose out on clients. Many large trade names such as ; Revlon. L’Oreal. would increase competition in the market. The authorities may besides enforce certain regulations and ordinances on the merchandises stating that the merchandise has high degrees of chemicals which are harmful to people. This may therefore take to an addition in the cost of developing the merchandises and besides in the launching of the merchandises.

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