Core Competence

822 Words4 Pages
Identify L’Occitane’s core competence. With reference to resource based view, explain how the competence was created.

1. Respect for the Environment
L’Occitane invested heavily in developing products that contain rich natural ingredients with traceable origins. The company follows the principles of phytotherapy and aromatherapy, without using animal products. All product tests are under medical supervision rather than tests on animals. L’Occitane also limits the use of silicones, chemical sunscreens, paraben preservatives, instead, uses certified organic ingredients. Besides, all products are produced in the way of respecting the environment and the production factories sort and recycle most of its waste and strive to limit its
…show more content…
In addition, some non-traditional distribution strategies like Café and Spa with L’Occitane brand name on it were introduced to enhance its brand image, increase customer awareness and therefore enlarge the market share.

4. Strong Customer Brand Loyalty
L’Occitane’s face care products enjoyed higher profitability than other products, so the company carried on to focus more on this product segments in order to build its brand loyalty by making more innovative products. Different types of practices such as building a customer database and introducing customer loyalty programmes were launched to further strengthen its brand creditability. For instance, L’Occitane operated a customer loyalty programme in Asia where customers who spend a certain amount could receive a membership card. Such membership gives incentive to visit its stores again as points are accrued according to actual spending and then can be used later as credit for purchasing other products. As a result, customer loyalty can be built through these marketing activities.

5. Ability to Sustain High Market Growth
L’Occitane does not merely satisfy its own brand and products development, but always intends to expand into other high growth markets such as cosmetics through natural growth and acquisitions. For instance, as believed that the market for organic cosmetics has high potential growth, so L’Occitane
Get Access