The Entrepreneurial Orientation of L’oreal
L’Oreal is one of the largest French companies with big and diversified portfolio of brands well known all over the world. It was created in 1907 by chemist Eugene Schueller and in the beginning it operated only on the development, manufacturing and distribution of products in hair care industry. Now L’Oreal is the world’s producer of high-quality cosmetics, perfumes, hair care and skin care products for men and women and owing world-famous brands as L’Oreal Paris, Garnier, Maybelline, Vichy, Ralph Lauren, Lancome, Helena Rubinstein and many others. The company is staying in continuous development in cosmetology and dermatology. It tries to modernize and refine various ranges of cosmetic products for make more diverse portfolio for customer.
Since a creation, L’Oreal always put a lot of emphasis on the growth of business and turnover. In 1960-1970s it was mainly expanded through acquisition (Vichy, Biotherm, Lancome, Garnier). For the next 10 years expansion mainly focused on internal growth and development of existing brands. Next stage was to conquer specific market segments, for example acquired Helena Rubinstein on the luxury segment, Maybelline in mass-market segment. To complete internal and external expansion and to increase profitability L’Oreal also diversified its activities by investing in pharmaceuticals industry by acquiring Synthelabo and buying Delalande and Delagrange.
The success items for company are innovation, development and entrepreneurial ruling. The key factor plays a leader, a CEO of company. L’Oreal has only 4 leaders, starting from the creation. The article illustrated strategy and orientation of the company of ruling by second CEO Francois Dalle. He introduced 2 organizational models for company implementation as exploration and exploitation that became main strengths of the company. Explore research and innovate for give the best offer for the consumer. Carefully selected acquisition and merge, entrepreneurial approach in ruling
Since a creation, L’Oreal always put a lot of emphasis on the growth of business and turnover. In 1960-1970s it was mainly expanded through acquisition (Vichy, Biotherm, Lancome, Garnier). For the next 10 years expansion mainly focused on internal growth and development of existing brands. Next stage was to conquer specific market segments, for example acquired Helena Rubinstein on the luxury segment, Maybelline in mass-market segment. To complete internal and external expansion and to increase profitability L’Oreal also diversified its activities by investing in pharmaceuticals industry by acquiring Synthelabo and buying Delalande and Delagrange.
The success items for company are innovation, development and entrepreneurial ruling. The key factor plays a leader, a CEO of company. L’Oreal has only 4 leaders, starting from the creation. The article illustrated strategy and orientation of the company of ruling by second CEO Francois Dalle. He introduced 2 organizational models for company implementation as exploration and exploitation that became main strengths of the company. Explore research and innovate for give the best offer for the consumer. Carefully selected acquisition and merge, entrepreneurial approach in ruling