STRENGTHS WEAKNESSES
1. The largest manufacturers and marketers 1. Fewer sales of fragrances & hair care
of cosmetic products. products as compared to other products.
2. It has about 26 brands, and employs 2. They are using Traditional functional
over 22,000 people word wide. structure.
3. First company to introduce in the 3. Using Focus Strategy.
industry consistent brand imagery. 4. Per unit cost of production is high
4. First major prestige cosmetics firm to because of the location of manufacturing
offer online shopping. unit are planted in countries like UK, US,
5. First cosmetic company to offer free whose labor cost is high.
samples and gifts with purchase. 5. High cost of sales.
6. Strong commitment to uncompromised 6. Difficulties in distribution in few
ethics and integrity. geographic region like Australia because
7. Its own 15 manufacturing factories in of slower and difficult retail environment
different countries. and cultural differences.
8. Manufacturing operations conform to 7. They are distributing in about 130
the ISO 14001 standards. countries whereas, their business offices
9. About 400 scientists for research & are situated in only 43 countries.
development activities and that are 8. No long term strategies about
located in different countries. promotional campaigns.
10. 43 business offices worldwide. 9. Sales growth less as compared to its
11. Markets About 9000 of Quality competitors.
Products. 10. Account receivables are increasing due to
12. It has the global licenses for fragrances which Account payables are also
and cosmetics. increasing.
13. Each of the company brands has a single 11. High Pricing
global image that is promoted with 12. Geographically not targeting Asian
consistent logos, packaging, and an countries
advertising design to differentiate it
from other brands.
14. It engages celebrities to advertize its
products.
15. Estee Lauder’s final 2007 sales
increased 7% to $7.037 billion.
16. Hair care net sales increased 16 % due
to sales growth from Bumble and d
Bumble and Aveda products.
17. Company’s sale of skin care products
increased 2 % due to new product
launches.
18. Makeup net sales increased 6 %,
reflecting growth from the makeup artist
brands.
19. Talking about geographical regions;
Estee Lauder’s
a. Sales in America increased by 3
percent due to makeup artists
and hair care brands ,internet
distribution , and the
introduction of new fragrances.
b. Net sale growth in Canada,
Latin, America, and Mexico
contributed an additional 48
million to increase.
20. Sales generated in US department stores
in 2006, representing 18% of the total
beauty market in United States.
OPPORTUNITIES SO STRATEGIES WO STRATEGIES
1. Increase in population. Enhance internet facilities (S4,O3,O2) Introduce new innovative brands of
2. Huge potential in emerging Increase the investment and R&D in fragrance and skin care products
markets. anti-aging cosmetic products (S18,O5) (W1,O1,O2)
3. Rising popularity of online Open more departmental stores & Opening new manufacturing units/
shopping. business offices (S10,S20, O1) Alliance with the companies that produce
4. Strategic alliances. at low cost or that have low labor cost.
5. Substantial scope for anti- Alliance with other advertising agencies (W4,W5,W9,W11,O4,O6)
aging products in the coming to find new means of attracting senior Target other social classes (W3, O6)
year. citizen (S14,O4,O5) Target Asian countries (W12, O1)
6. Desire for low cost products
by the consumer.
7. Focus on disposable income
of people.
THREATS ST STRATEGIES WT STRATEGIES
1. Highly competitive market By using innovations/ by using Minimize production cost. Alliance with
2. Changes in laws and differentiation strategy/ by using market the companies having low cost of
distribution policies penetration strategies.(S1,T1) production (W4,T1,T8)
3. Economy slow down By using relationship marketing (S5,T6) Emphasize on herbal/ natural ingredients.
4. Government control over Discount strategies for attracting (W11,T7,T9)
business retailers and wholesalers.(T8,S11.S20) Use an effective debt recovery
5. Huge Taxes system( W10,T5)
6. Customer loyalty to other
brands.
7. Restrictions on animal
Testing
8. Competitive pricing at
megastores
9. Concerns about the use of
aerosols and fluorocarbons
that cause environmental
damage.