Estee Lauder, based in New York City, is a manufacturer of cosmetic products that include skincare, makeup, fragrances, and hair products. STRENGTHSIndustry Recognition: According to NPD Clinique, Estée Lauder, and MAC are the best-selling skin-care and up-scale cosmetic. Estée Lauders Company Profile – SWOT Analysis: Estée Lauder Cos has seen above industry level growth, helped by the solid performance of its newer.

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There are very few organizations that laauder managed to include all of these elements within their mission statement. This phenomenon marks the weak penetration of the products in those specific markets. The factors that can facilitate the strength of customers are such as if customers can by in large quantities. The fragrance division has been the highest income generator, has the largest market share but slow growth. Barriers to entry lower the threat of entry and makes the industry more attractive Barney, This in mind however, the Estee Lauder products are designed for the middle-high end clientele who have no problem affording the products.

SWOT analysis a highly interactive process and requires effective coordination among various departments within the organization such as — marketing, finance, operations, management information systems and strategic planning.

The grand strategy analyses the market growth and the competitive position of an organization. We make the greatest data maps. Opportunities for Estee Lauder — External Strategic Factors The new technology provides an opportunity to Estee Lauder to practices differentiated pricing strategy in the new market. If you contact us after hours, we’ll get back to you in 24 hours or less.

With the growing economy in countries, more and more people are able to afford these products. Automation of activities brought consistency of quality to Estee Lauder products and has enabled the company to scale up and scale down based on the demand conditions in the market. Investors in the beauty industry are expected to hold back until the stability of doing business in the EU is determined Micallef, Currently, people are opting for more natural products and are likely to opt for home remedies for anti ageing or preventive products such as coconut oil.


The bargaining power of suppliers for Estee Lauder is low, since the company requires high bulk of supplies hence many suppliers would be proud to work with the company. According to Porter,an industry is whereby a number of organizations offering similar products are competing for the same markets.

Click to learn more https: Amazing Business Data Maps. These strengths not only help it to protect the market share in existing markets but also help in penetrating new markets. On the other hand, with low switching costs, customers can easily get products and services from competition hence increasing the bargaining power of customers.

This mission statement is broad and does not get to the detail of what the business is about.

Estee Lauder has to build internal feedback mechanism directly from sales team on ground to counter these challenges. The company has not being able to tackle the challenges present by the new entrants in the segment and has lost small market share in the niche categories.

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A comparative example could be – GE healthcare research helped it in developing better Oil drilling machines. Employees must also understand and be unified in pursing these goals. Limited success outside core business — Even though Estee Lauder is one of the leading organizations in its industry it has faced challenges in moving to other product segments with its present culture. They are the innovative and leading brands. Government green drive also opens an opportunity for procurement of Estee Lauder products by the state as well as federal government contractors.

Estee Lauder SWOT Analysis / Matrix

Lower inflation rate — The low inflation rate bring more stability in the market, enable credit at lower interest rate to the customers of Estee Lauder. Estee Lauder has acquired some other businesses such as Smashbox Beauty Cosmetics and created partnerships with Aramis and designer fragrances and Tory Burch fragrances. For a company in this position, they should concentrate on the current market, and develop strategies to remain sustainable and competitive in this market.

Later, Estee Lauder started her own business in face cream and improved the cream. With a cash injection, the star should reach more people with the market penetration, and integration to take control of the whole value chain. This means that Estee Lauder is making a commitment by creating conducive working environment.


Estee Lauder Marketing Project Report | External & SWOT Analysis

An industry has high competitive rivalry has a large number of competitors, slow growth, high fixed costs and low product differentiation Porter, Eshee Lauder has role models and leaders in identifying what the consumers need and prefer, then developing products accordingly.

To be the global leader in delivering the promise to keep our every customer forever young. Leave your email and we will send you an example after 24 hours The Estee Lauder Companies Inc.

Leave a Reply Cancel reply Your email address will not be published. If new entrants can easily enter the industry, the competitiveness of the business will be reduced.

The expansion has helped the organization to build new revenue stream and diversify the economic cycle risk in the lxuder it operates in. Organizations also assess the likelihood of events taking place in the coming future and how strong their impact could be on company’s performance.

It has successfully integrated number of technology companies in the past few years to streamline its operations and to build a reliable supply chain. Further, the younger generations years are using preventive make up such as a lot of sunscreen; while the older generations are using anti aging products which creates analsis market for cosmetic products.

Since Estee Lauder operates internationally, they must consider the anzlysis requirements in each country and the swott of government involvement in the business.

Along with these elements a mission statement should decide if the company will be customer-oriented or product-oriented. Their marketing team is also able to come out with strong marketing techniques such as giving out freebies, discounted purchase-with-purchase items and having makeup artist events around the world. Certain capabilities edtee factors of an organization can be both a strength and weakness at the same time.

And it also has a strong brand portfolio. There are other substitutes to cosmetics in the market.

There is higher income levels across generations provide them with capacity to buy the products.