Loreal Strategic Analysis
L’Oréal has created several core competencies that have created value and served to gives L’oreal a competitive advantage over it’s competitors.
Loreal’s first core competency is seen through it’s product innovation. L’oreal is fully dedicated to creating new and innovative products at it’s advanced dermatological research facilities. L’oreal invests heavily in research and development and aims to introduce one or two new products each year, every year in each of it’s world-wide markets. In fact, L’oreal annually invests 3 percent of its sales for research and new product creation. L’Oréal then regains this investment through the sales of its new globally launched products. This core …show more content…
Organizational Strategy Loreal’s organizational strategy has been the key to its international growth and success. With operations in over 130 countries and different products offered in each country, the structure and strategy of the Loreal group is what will determine their future. Carrying forward, the Loreal group should set up their organizational structure so that there is a good deal of control over the different product brands in different countries. Each brand name should have its own