SWOT Analysis - L'Oréal

Extract

[...] It should also be noted that L'Oréal owns, as we said previously, several brands, and this is an undeniable strength, nevertheless, the group consequently has a very large number of employees, which can lead to management difficulties. Finally, like the majority of beauty and cosmetics groups, L'Oréal is forced to constantly find new products while updating old ones, which is very costly in terms of research. C. Opportunities For L'Oréal, there are many opportunities. In fact, in recent years we have witnessed a more pronounced demand from men for beauty products and other cosmetics, which allows the group to generate additional income while broadening its basic target. [...]

[...] SWOT Analysis – L'Oréal I. Introduction A. L'Oréal L'Oréal is a French group founded in 1909 and specialising in the cosmetics sector. In 2021, it is the world number 1 in the segment. The group's activities are divided into several areas, consumer cosmetics, which consumers find on the shelves of supermarkets and other businesses, active cosmetics, whose brands are found more in pharmacies and drugstores. There are also luxury cosmetics and a professional range. L'Oréal currently owns 36 brands and ensures an optimal presence in 150 countries. [...]

[...] The new players use their novelty as a weapon, and it is in this perspective that groups like L'Oréal must work. We live in an age where seniority is likely to always be a strength, but also a weakness, as consumers increasingly like to try new things. In the future, L'Oréal will, therefore, have to constantly reinvent itself in order to be able to offer new products in new ranges. Finally, it should be noted that in recent months, with the arrival of the health crisis in the world and the wearing of compulsory masks, French women wear much less make-up than before. [...]

[...] The main competitors of the L'Oréal group are Procter & Gamble, Unilever and Beiersdorf. L'Oréal is in several price ranges, which further increases the number of potential competitors. Thus, in addition to the big luxury houses or the brands that we have just mentioned, there are among the competitors the private labels and the new players who offer more organic and natural products. Large distributions such as Carrefour, Auchan, Leclerc U or Casino have been manufacturing standard and organic cosmetics for several years now. [...]

[...] SWOT Analysis A. Strengths The main strength of the L'Oréal group is, undoubtedly, its notoriety. Indeed, as we said in the introduction, the group is present in more than 150 countries and is positioned among the world leaders in the cosmetics sector. Its length of service is also a guarantee of success for consumers, who see it as proof of the seriousness and dynamism of the brand, which has managed to remain competitive, despite the heavy competition that inhabits the segment. [...]