L'Oreal, France Country Study
Introduction
Globalization
As defined by “Global Business Today”, globalization refers to the shift toward a more integrated and interdependent world economy. For companies today, that means a larger scope, and many more opportunities, but also more threats. In the following paper I will discuss the strengths, weaknesses, opportunities and threats of one of the world’s largest cosmetics company, L’Oreal Paris, in its country of origin as well as in the new emerging markets it seeks to expand into.
Background on L’Oreal Paris
L’Oréal began as a research and development company for hair products but eventually branched out into other cleansing and beauty products. It now markets over 36 brands and many thousands of individual products in all sectors of the beauty business: hair color, permanents, hair styling, body and skin care, cleansers, makeup and fragrances. (Appendix B)
The company 's products are found in every type of cosmetic distribution channel, from hair salons and perfumeries to supermarkets, health/beauty outlets, pharmacies and online stores. L’Oréal currently has five research and development centers: two in France, one in the U.S, one in Japan, and in 2005, one was established in Shanghai, China. A future facility in the US will be in Berkeley Heights, New Jersey.
Current company info
Currently L’Oréal has operations in over 130 countries and is one of the largest players in the cosmetics industry, employing over 50 000 people. In this paper I have chosen to discuss why it has become so successful in its country of origin, France and one of its international ventures, India, where it is currently one of the top cosmetic companies.
Mission
In the next 5 years, L’Oreal has set a goal to bring in one billion new customers. This means expanding their brands into the emerging markets. One of the emerging markets that L’Oreal has been focusing on in recent years is India, and according to the 2013 shareholders letter, the New Markets (which
Globalization
As defined by “Global Business Today”, globalization refers to the shift toward a more integrated and interdependent world economy. For companies today, that means a larger scope, and many more opportunities, but also more threats. In the following paper I will discuss the strengths, weaknesses, opportunities and threats of one of the world’s largest cosmetics company, L’Oreal Paris, in its country of origin as well as in the new emerging markets it seeks to expand into.
Background on L’Oreal Paris
L’Oréal began as a research and development company for hair products but eventually branched out into other cleansing and beauty products. It now markets over 36 brands and many thousands of individual products in all sectors of the beauty business: hair color, permanents, hair styling, body and skin care, cleansers, makeup and fragrances. (Appendix B)
The company 's products are found in every type of cosmetic distribution channel, from hair salons and perfumeries to supermarkets, health/beauty outlets, pharmacies and online stores. L’Oréal currently has five research and development centers: two in France, one in the U.S, one in Japan, and in 2005, one was established in Shanghai, China. A future facility in the US will be in Berkeley Heights, New Jersey.
Current company info
Currently L’Oréal has operations in over 130 countries and is one of the largest players in the cosmetics industry, employing over 50 000 people. In this paper I have chosen to discuss why it has become so successful in its country of origin, France and one of its international ventures, India, where it is currently one of the top cosmetic companies.
Mission
In the next 5 years, L’Oreal has set a goal to bring in one billion new customers. This means expanding their brands into the emerging markets. One of the emerging markets that L’Oreal has been focusing on in recent years is India, and according to the 2013 shareholders letter, the New Markets (which
References: “Who Are we?”, http://www.lorealparis.ca/the-brand/who-are-we.aspx “Women’s Hairstyles & Cosmetics of the 18th Century: France & England, 1750-1790”