Published by MBA Skool Team, Last Updated: August 20, 2021
SWOT analysis of L'Oréal analyses the brand by its strengths, weaknesses, opportunities & threats. In L'Oréal SWOT Analysis, the strengths and weaknesses are the internal factors whereas opportunities and threats are the external factors.
SWOT Analysis is a proven management framework which enables a brand like L'Oréal to benchmark its business & performance as compared to the competitors. L'Oréal is one of the leading brands in the FMCG sector.
The table below lists the L'Oréal SWOT (Strengths, Weaknesses, Opportunities, Threats), top L'Oréal competitors and includes its target market, segmentation, positioning & Unique Selling Proposition (USP).
L'Oréal best caters to the beauty demands of women of different cultures through constant research and innovation
Women of upper middle class
Affluent young & elderly women looking for beauty products
L'Oréal offers high end brand in beauty & cosmetic products
SWOT Analysis of L'Oréal
Below are the Strengths in the SWOT Analysis of L'Oréal:
1. Continuing research and innovation in the interest of beauty which assures that the L’Oreal Cosmetics offers the best to their consumers. 2. L'Oréal is a leader in the growing cosmetics industry despite the competition in the market. 3. High-end advertising which adapts to the culture of target audience 4. L'Oréal has over 80,000 employees globally 5. Apart from hair colour, skin care, sun protection, make-up, perfumes and hair care, the company is active in the dermatological and pharmaceutical fields and is the top nanotechnology patent-holder in the United States 6. L’Oréal has operations in over 130 countries and over 4o manufacturing plants
Here are the weaknesses in the L'Oréal SWOT Analysis:
1. Decentralized organizational structure. Due to the many subdivisions of the Company, there is also the difficulty in the control of L’Oreal 2. Stiff competition from other leading cosmetic established brands
Following are the Opportunities in L'Oréal SWOT Analysis:
1. L'Oréal can tap the growing market that ranges from the affluent, the aging and also the masses of the developed countries 2. Greater market share because of the numerous patents registered by the Company.
The threats in the SWOT Analysis of L'Oréal are as mentioned:
1. Growing competition within the field of cosmetic brands 2. Economic downturn that is quite evident in other countries 3. L’Oreal Group may be producing the best of its line, people may find that their products are not of their basic needs and would skip buying L’Oreal products.
This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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