Discount Tutor
07/19/2019
ICS 395 S1 2019
5
Companies’ Strategies
Competitive Scope
Cost Leadership
Differentiation
Focused Cost Leadership
Focused Differentiation
Strategic
Position
Broad
Narrow
Cost
Differentiation
Estée Lauder
L’Oréal
Estée Lauder:
Our strategy has been to market and promote our products through distinctive brands seeking to address broad preferences and tastes.
In fiscal 2018, we continued to strategically open new points of distribution globally, and exited certain locations when appropriate.
Our strategy is to build strong relationships globally with select retailers, as well as with our consumers directly through freestanding stores, e-commerce sites and social media.
L’Oréal:
Our growth accelerated to produce our best year in more than 10 years. And we achieved a new record operating margin of 18.3%.
Our strategically concentrated but operationally decentralised model, combined with the empowerment of teams in the countries, is what brings agility and excellence onto the field.
The Board devotes most of its time to strategic issues to foster and accelerate the Group’s transformation into a more universal, more digital and more sustainable L’Oréal.
07/19/2019
ICS 395 S1 2019
6
How successful is each company in implementing its strategy?
Estée Lauder:
Rivalry among competing firms.
Potential development of substitute products.
Potential entry of new competitors.
L’Oréal:
Bargaining power of suppliers.
Other Stakeholders, Government, Unions, etc.
Complements.
07/19/2019
ICS 395 S1 2019
7
What other strategies should each company be considering based upon what you have learned?
07/19/2019
ICS 395 S1 2019
8
Which company is out performing the other based upon your analysis of your selected strategic and financial variables?
Estée Lauder
L’Oréal
70
Total Sales
($B)
0
20，000
Total Employees
170,000
Average Total
Sales
$30.28 (B)
Average Number
Of Employees
80,805
Based on the two-by-two chart, L’Oreal perform better than Estee Lauder.
Yes.
07/19/2019
ICS 395 S1 2019
9
Are the business model, mission statement, vision statement, strategic objectives, financial objectives, and strategies in alignment for each company?