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Competitive Advantage Case Study

Case Title:

L'Oreal's Business Strategy

Publication Year : 2004

Authors: G Srikanth

Industry: Home Appliances and Personal Care Products


Case Code: CCA0008

Teaching Note:  Not Available

Structured Assignment:  Not Available

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Established in 1909, L'Oreal, the French cosmetic company, had become the world leader in the cosmetic market by 2003. The L'Oreal group marketed over 500 brands, consisting of more than 2,000 products. Its products included make-up, perfume, hair and skin care products, which were tailored according to the consumer needs. The company believed in the strategy of innovation and diversification. In 2003, though the L'Oreal group was ranked number one in the US cosmetic market, it faced tough competition from Estee Lauder and Procter and Gamble (P&G). This made the group refocus its business strategy. It came up with products catering to the beauty needs of different ethnic groups and genders.

Pedagogical Objectives:

  • To discuss the various strategies implemented by the L'Oreal group to be the market leader in the global cosmetic market and how the group is trying to sustain that position by refocusing its strategy

Keywords : L'Oreal, Laboratories Garnier, Research and development, Innovation and diversification, Lindsay Owen-Jones, Mass-market channels, Professional products division, Black American culture and learning, Competitive Strategies Case Study, Soft-Sheen and Carson brand, Different ethnic groups, Business strategy, Estee Lauder, Procter and Gamble, Global cosmetic market, Personal care products, Maybelline

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