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L'Oreal case study, management and performances

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  1. Introduction
  2. Strategic decisions of Michelin
    1. Positioning of the company
    2. Targeting strategy
    3. What strategies of Michelin differ from other brands of tires?
  3. Internal analysis
    1. Innovation, quality, productivity
    2. Segmentation
    3. Information system
  4. External analysis
    1. Micro-environment: Partners of Michelin
    2. Competitive analysis
  5. Conclusion

In 1907, L'Oréal was founded by Eugene Schueller, a chemical engineer, with the invention of a synthetic formula to dye hair and with a commercialization of its products among professionals. Until 1957, the growth of L'Oréal was achieved by diversification into products "general public", the take over of "Monsavon" and the launch of shampoos DOP. All this is supported by major advertising and radio campaigns .

From 1957 to 1988, the "L'OREAL BIG" is created as the successor to L'Oréal Francois Dalle. This SA is continuing its diversification with significant equity in Marie Claire, Canal +, and also Synthelabo.

Having defined the activities of L'Oreal and analyzed the DAS, this paper will examine the opportunities and threats to the environment and it will diagnose strengths and weaknesses of the organization. Then it will define the key success factors of this great brand. This will be followed with a competitive analysis using Porter's five forces. Then, it will take the value chain of the company to lead to competitive advantage and strategic development paths of L'Oreal in order to develop policy recommendations.

Finally, it will analyze the human resources management at L'Oreal and will study the case of the Management Development Center in Latin America with the recommendations.

"The strategic sphere of activity (DAS) is a subset of activities of a company which has similar key success factors and which share resources and know-how." The L'Oreal group tries to cover the totality of the market because of the strategic segmentation of the two branches, unequal importance and for its business portfolio: the cosmetic branch and the dermatological branch, which are articulated around the four principal divisions segmented according to the distribution systems.

L'Oréal tries to cover all the market place through the strategic segmentation of the two branches of unequal size, its business portfolio: the industry and the cosmetic dermatology branch, which focus on four main divisions segmented according to the distribution channels.

Products for the "general public" is distributed through the self-service format in supermarkets. Its portfolio of brands provides extensive and diverse products that meet everyone's expectations. Indeed, the L'Oréal products combine high tech and high added value, at a price accessible to the greatest number of consumers.

The products for the "professionals" is distributed with the salon professionals.They go to hairdressers around the world and are not only used, but also sold in salons, where customers benefit from the expertise and professional advice. L'Oréal offers active cosmetic care , on the basis of effective products and supported by health professionals (pharmacist, dermatologist), providing personalized service to customers.

In addition, changes in distribution channels "pharmacies and drug stores" and "big box" in France represents a significant opportunity for the group L'Oreal, which sells products aimed largely at the general public, and addressed the pharmaceutical industry through its participation in the capital.

It is also important to note that the activity of the L'Oréal group includes the design, production and marketing of solutions for beautification, maintenance and care of the skin and hair, allowing it to control the entire value chain. In-house production (90%) by the group and gives it a certain guarantee of quality in the eyes of customers.

Tags: L'Oreal, brand analysis, management and performance

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