L'Oreal Harvard Business Review

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L’Oreal Harvard Business Case by Nur Ili Athirah The pass 100-year history of L’Oreal, had much changed the company that made them the biggest global cosmetic company. The organizations have been going through a process of expanding their barriers to reach new markets across the globe. L’Oreal was founded by a French chemist, Eugene Schueller, who developed the world’s first synthetic hair-color product, L’Aureole in 1907. By 1912, his products expand to Netherlands, Austria and Italy. During the mid 1930s, Schueller diversified his products to hygiene and toiletry sectors of the cosmetic market with great success. As time goes by, L'Oreal positioned as the leader in European hair color market and skin care, but this wasn't good enough for them, as they wanted to reach new markets as the American, and Asian. However, entering US market was not easy as they face three main obstacles along the way which were; L’Oreal had little to no relationship established with U.S. Local middlemen, L’Oreal hair products were not well known by the salon workers and their clientele, and the French prestige, which helped sell perfumes, did little for the hair-coloring products. Therefore, L'Oreal made certain acquisitions, as well as the implementation of new market strategies and corporate strategies to successfully reach their goals that they achieved today. Let us analyze L’Oreal Company by using the SWOT Analysis theory. SWOT analysis involves understanding and analyzing the strengths and weaknesses and identifying threats to the business as well as opportunities in the marketplace. L’Oreal strength is to have the ability to acquire new brands and transform then into new market leaders. During Owen Jones era as a CEO, his management style has brought to the company a revolution from a French based cosmetic company to a world leader in the cosmetic industry. L’Oreal acquire

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